Connecticut Avenue Securities Investor Presentation
HomeReadyⓇ
Fannie Mae's flagship affordable lending product
Designed to serve creditworthy borrowers and to help fulfill our affordable housing mission and regulatory housing goals
while maintaining strong, sustainable credit standards
HomeReady helps to improve housing affordability by reducing borrower costs:
Reduced MI requirements for LTV>90 result in lower monthly payment
■ Lower loan-level price adjustments (LLPAs) help to reduce the rate and/or fees charged to the borrower
Borrower Eligibility Changes - July 2019
Fannie Mae announced changes to the income limits for eligible Home Ready borrowers, beginning with new casefiles submitted
to Desktop Underwriter on or after July 20, 2019:
Eligibility Change
Borrower income limit requirements
Properties in low-income census tracts
Share of CAS 2020-R02 HomeReady UPB
Prior to July 20, 2019
Borrowers' total annual qualifying
income may not exceed
100%
of the area median income (AMI) for the
property's location
No limitation on borrower income if
subject property is located in a low-
income census tract
94.8%
New applications
on or after July 20, 2019
Borrowers' total annual qualifying income
may not exceed
80%
of the area median income (AMI) for the
property's location
Borrowers' total annual qualifying income
may not exceed 80% of the area median
income (AMI) for the property's location
5.2%
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