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Fannie Mae has created an online tool for real estate professionals to use when qualifying low- and moderate-income buyers. The toolkit features a variety of resources from eligibility to homebuyer education and more. Jonathan Lawless, Vice President of Product Development and Affordable Housing, shares a story about how a buyer was able to qualify for this product when others did not come through.

Young family uses HomeReady mortgage to buy first home, and just in time

By Jonathan Lawless, Vice President of Product Development and Affordable Housing, Fannie Mae

Last fall, real estate agent Alex Mosquera, 35, broker/owner of Terra Realtors in Cranford, NJ, was showing homes to a young and very-pregnant local couple and “running the numbers.”

The buyers, Aldopho and Toni Peralta, had steady incomes but because they had some debt, Mosquera was having a tough time qualifying them for an FHA loan.

 

Hot Market

Cranford’s housing market is “very hot.” But since the Peralta’s were flexible on which area towns they would consider for buying their first home, Mosquera expanded his geographic search. He also asked the couple more questions about their income, debt, and overall finances.

Mosquera then suggested Fannie Mae’s HomeReady® mortgage, an affordable mortgage designed for low- to moderate-income borrowers. HomeReady allows buyers to put as little as 3 percent down, eliminating a barrier cited by many young renters aspiring to buy a home. It also has buyers complete an online education course by Framework Homeownership that’s received very favorable reviews from consumers. The course is available in English and Spanish. If more help is needed, borrowers can work with a HUD-approved housing counseling agency to improve their credit and understanding of the mortgage process.

Fannie Mae’s research shows that borrowers have a lot of misunderstandings about mortgages and loan terms. The Framework course helps them understand what they can expect during the application and approval process and after the close. If more help is needed, borrowers can work with a HUD-approved housing counseling agency to both improve their credit and better understand the mortgage process.

 

Becoming Homeowners

The Peraltas were excited to purchase a Fannie Mae REO property in Scotch Plains – an area nearby with a median listing price of $650,000.

“The house was in great condition and in their price range,” says Mosquera. Best of all, the deal closed just in time. The Peraltas moved into their new home when their twins, a boy and a girl, were just a week old.

Interested in learning more? Check out our HomeReady mortgage toolkit designed for real estate professionals.