Fannie Mae is a mortgage investor, but they have programs that are intended to help everyone from home buyers to current homeowners and even renters. Available for both first-time and repeat home buyers, the HomeReady® program allows you to buy a home, refinance to lower your rate and/or change your loan term with as little as 3% down or in existing equity.HomeReady®
Because it’s intended to help clients with low-to-moderate incomes, those on the loan can’t make more than 80% of the area median income between them. Fannie Mae does have an option to have 3% down without income limits, but at least one client must be a first-time home buyer.
HomePath
HomePath® is the site where Fannie Mae features foreclosures that it’s taken possession of to resell, also known as real estate owned (or REO) properties. You have to know what you’re getting into when buying a foreclosed property because they’re typically sold as-is and they often require some work. However, you may be able to get a good deal.
Additionally, first-time home buyers who choose a Fannie Mae-owned property can spend as little as 3% down and get up to 3% back in closing-cost assistance in the form of seller concessions from Fannie Mae through the company’s HomePath Ready Buyer™ program. You’ll also have to take a homeownership education course that costs $75. This cost can be reimbursed as part of your closing assistance.
RefiNow™
The RefiNow™ program offers options for homeowners who have experienced difficulty qualifying for a refinance to lower their mortgage payments in the past.1 RefiNow™ has looser requirements around DTI and home equity, which serves homeowners who meet certain low-income thresholds.
Eligible homeowners for the RefiNow™ program need to see at least a 0.5% reduction in their interest rate and their overall mortgage payment has to decrease. There are other benefits of the RefiNow™ program, including that those who qualify will receive a $500 credit toward a home appraisal, if the appraisal is mandatory.
It's important to note that when qualifying for RefiNow™, the lowest median credit score is used for qualifying even when there are multiple clients on the loan. The lowest median FICO® Score among all borrowers on the loan can't be lower than 580.
Mortgage Help Network
If for any reason you’re struggling with your monthly mortgage payment, homeowners with Fannie Mae-owned loans can utilize the Mortgage Help Network. This program allows homeowners to work with a Department of Housing and Urban Development housing counselor in order to go over the situation, look at options and serve as a liaison between homeowners and a mortgage servicer. If you’re a Rocket Mortgage client who’s having or may soon be having payment trouble, please feel free to reach out to us by filling out our Application for Success. We’re here to help!
Tenant-In-Place Rental Program
If you’re a tenant in a Fannie Mae-owned property that’s currently being foreclosed upon, you may be able to continue renting at current market rates with the Tenant-In-Place program. In certain cases, you may be able to keep your current lease. In others, you may be given the option to sign a new lease agreement. Fannie Mae offers include month-to-month leases as well as those that are good for a specific term.
