Obtaining a mortgage may get easier for creditworthy borrowers with low and moderate incomes thanks to changes Fannie Mae is making.
According to KARE 11, an NBC affiliate in Minneapolis and St. Paul, Fannie Mae’s HomeReady mortgage program was designed specifically to address the barriers many Americans face from owning a home, which includes a debt-ratio problem or an employment history problem.
“Buyers can put as little as 3 percent down on the house, with expanded rules regarding the source of the payment,” KRE 11 reports.
But according to the news site, the kicker is that banks will only consider income from the borrower and a spouse or the borrower and a cosigner, instead of looking at the buyer’s income versus debt.
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