FAQ Category: HomeReady Mortgage
Who is People Driven Credit Union’s Mortgage Specialist?
Meet Our PDCU Mortgage Specialist Michelle Dzon is authorized to act as an agent on behalf of People Driven Credit Union. Contact her for personalized assistance with your mortgage needs. Michelle Dzon Member First Mortgage michelle.dzon@memberfirstmortgage.com Connect with Michelle 616-301-1714 | NMLS ID: #401292
Continue ReadingWhat is a HomeReady® Mortgage Loan?
A HomeReady® Mortgage Loan is a flexible, affordable loan program from Fannie Mae designed to help low-to-moderate income borrowers and first-time homebuyers achieve homeownership. It features low down payment requirements and flexible underwriting standards to make buying a home more accessible.
Continue ReadingWho is eligible for a HomeReady® Mortgage Loan?
HomeReady® Mortgage Loans are available to creditworthy low-to-moderate income borrowers. Income limits typically apply, and your income must generally be at or below 80% of the area median income (AMI) for the location of the property. The program is open to both first-time and repeat homebuyers.
Continue ReadingWhat are the down payment requirements for a HomeReady® Mortgage?
The minimum down payment required for a HomeReady® Mortgage is as low as 3% of the home’s purchase price. This low down payment option makes it easier to afford a new home without a large upfront cost.
Continue ReadingCan I use gift funds or grants for my down payment?
Yes, HomeReady® allows you to use gift funds from relatives, friends, or other eligible sources for your down payment and closing costs. Grants and down payment assistance programs can also be used.
Continue ReadingWhat types of properties are eligible for HomeReady® Mortgages?
HomeReady® Mortgages can be used to finance various types of properties, including single-family homes, condominiums, and multi-unit properties (up to four units). The property must be used as your primary residence.
Continue ReadingWhat are the credit score requirements for a HomeReady® Mortgage?
The minimum credit score required for a HomeReady® Mortgage is typically 620. However, having a higher credit score can improve your chances of qualifying and securing better interest rates.
Continue ReadingIs homeownership education required?
Yes, HomeReady® requires first-time homebuyers to complete a homeownership education course from an approved provider, such as Framework. This course helps prepare you for the responsibilities of homeownership and provides valuable financial insights.
Continue ReadingCan I refinance an existing mortgage with a HomeReady® Mortgage?
Yes, HomeReady® offers refinancing options that can help you take advantage of lower interest rates and better loan terms. Who Can Qualify for a HomeReady® Mortgage? The HomeReady® mortgage, offered through Fannie Mae, is designed to make homeownership more accessible for low- to moderate-income borrowers. This program allows for down payments as low as 3% and offers flexible income sources, ...
Continue ReadingWhat are the benefits of a HomeReady® Mortgage Loan?
HomeReady® offers numerous benefits, including low down payment options, flexible underwriting standards, competitive interest rates, and the ability to use various sources of funds for down payments. It also promotes financial literacy through required homeownership education.
Continue ReadingHow can I apply for a HomeReady® Mortgage Loan?
Apply online or contact our mortgage specialist, Michelle Dzon, who will guide you through the application process, help you understand your options, and determine your eligibility. Michelle Dzon is authorized to act as an agent on behalf of People Driven Credit Union. Contact her for personalized assistance with your mortgage needs. Michelle Dzon Member First Mortgage michelle.dzon@memberfirstmortgage.com 616-301-1714 | NMLS ...
Continue ReadingWhat is the debt-to-income (DTI) ratio requirement?
Your debt-to-income ratio should generally not exceed 50%. This means that your total monthly debt payments, including your new mortgage, should be 50% or less of your gross monthly income.
Continue ReadingWhat is private mortgage insurance (PMI), and when is it required?
Private mortgage insurance, or PMI, is insurance that helps protect the lender if a borrower stops making payments on a conventional mortgage loan. PMI is typically required when your down payment is less than 20% of the home’s purchase price or original value. When PMI is usually required PMI is most commonly required on a conventional mortgage when you put ...
Continue ReadingWhat is a NMLS ID?
An NMLS ID is a unique identification number assigned to mortgage loan originators and mortgage lending institutions through the Nationwide Multistate Licensing System & Registry. It helps identify the person or company handling your mortgage and supports transparency in the mortgage process. Why it matters An NMLS ID allows consumers to verify the identity and licensing information of a mortgage ...
Continue ReadingWhat documents do I need to apply for a mortgage?
When you apply for a mortgage with People Driven Credit Union, you will generally need documents that help verify your identity, income, assets, employment, and insurance information. Having these items ready can help move your application along more smoothly. Documents you may need for a PDCU mortgage application Copy of your driver’s license or state-issued ID, to verify your identity ...
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