It takes the average moderate-income consumer 18 years to save a down payment for an average-priced home.
That startling fact, and the nation’s increasingly diverse population, served as the driving forces behind Fannie Mae’s soon-to-be-launched HomeReady Mortgage program, Tammy Trefny, senior account manager for the agency, told CUNA Lending Council Conference attendees Monday morning in Fort Lauderdale, Fla.
HomeReady aims to help lenders serve today’s market of creditworthy, low- to moderate-income borrowers by expanding eligibility for financing homes in designated low-income, minority, and disaster-impacted communities, she says.
Fannie Mae will launch HomeReady on Dec. 12.
“A demographic sea change has occurred in the housing market,” Trefny says, “characterized by the rise of the millennials, increased diversity, and a growing elderly population. New household growth is being driven by traditionally underserved segments.”
Product features of HomeReady include:
The home ownership education component requires HomeReady participants to receive four to six hours of instruction and pass an online test before receiving a certificate of completion, Trefny explains.
Borrowers will have access to post-purchase home ownership support for the life of the loan through a third-party home ownership advisory service.
Trefny says the program also will feature benefits for lenders, including simplified pricing and execution, and automated underwriting through Fannie Mae’s Desktop Underwriter platform.
Read more CUNA Lending Council Conference coverage.