FAMILYReady HOME MORTGAGE FAQ'S
QUESTION: Can I use Cash for down payment?
ANSWER: Yes! There is no Seasoning Required! Many people save cash in a safe place at home rather than in a traditional savings account. Unlike all other mortgage programs that require borrowers to deposit cash in a bank and wait 60 days (this is called seasoning) before they can use it. With FAMILYReady Home Mortgage. Borrowers can to use their cash-on-hand (no seasoning required) for there down payment anytime. This is a ground-breaking Feature and only available with a FAMILYReady Home Mortgage.
QUESTION: Can I use my parent’s income as non-occupant co-borrowers to help me qualify for a loan?
ANSWER: Yes! Parents who already own a home can co-sign their children’s FAMILYReady Home Mortgage. We can use their income along with the primary borrower’s income for qualification.
QUESTION: Can I use income from household members who will not be listed on the FAMILYReady Mortgage loan?
ANSWER: Yes! this feature is available for multiple families living in one home, parents living with children, or unmarried couples where only one primary borrower wishes to be on the loan. All non-borrower’s income will be used as compensating factors in part of the qualification process only. What are Compensating Factors? When you need a mortgage, but you’re not a perfect risk, we can build a case with underwriting as to why you will still be a responsible mortgage holder using something called “compensating factors”. Some examples of compensating factors are: a) higher down payment b) pay down debts c) settle outstanding judgements c) show long-term savings as reserves d) raise credit score, etc.
QUESTION: Can I use income from a previous boarder/roommate who will move into my new house and pay rent?
ANSWER: Yes! To use this income, you must document rental payments and a shared living situation for the previous 12 months. Be sure to confirm your agreement in place (preferably in writing) with your roommate(s) that they have agreed to pay rent.
QUESTION: If the home I plan to purchase has a spare room apartment or other spare room unit. Can I use the rental income to qualify?
ANSWER: Yes! Even if you do not currently have a roommate, you can find a renter for the additional unit in your new home and use proposed/anticipated income to qualify. Unlike boarder/roommate income, you do not have to have 12 months history of shared residency. Keep in mind that the home must be classified as a 1-unit home with an ADU (Accessory Dwelling Unit), not a 2-unit home. Using rental income is still possible when buying a 2-4 unit home, but you may need landlord education and/or experience.
QUESTION: What is the minimum Credit Score required for a Family Ready Mortgage home loan?
ANSWER: You don’t need perfect credit to qualify for a FAMILYReady Home Mortgage. In fact, you can be approved with a FICO score of just 620. A credit score of at least 680 or higher, though, will yield the best interest rates.
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