HomeReady® Mortgage Loans

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

616-301-1714 | NMLS ID: #401292

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.

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.

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.

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.

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.

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.

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.

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, including contributions from household members who aren’t on the loan. First-time and repeat homebuyers can qualify, and HomeReady® mortgages are available for primary residences. To be eligible, borrowers typically need a minimum credit score of 620 and must complete an approved homeownership education course if they are first-time buyers.

Using a HomeReady Mortgage to Refinance Your Existing Loan

The HomeReady® program isn’t just for purchasing homes—it also offers an opportunity for borrowers to refinance their existing mortgages. Eligible homeowners can use a HomeReady® refinance to secure a lower interest rate, reduce monthly payments, or change loan terms. Like the purchase option, the refinance program allows for flexible income qualifications and may help borrowers who have built up equity in their homes but need a more affordable loan structure. Refinancing through HomeReady® can be especially beneficial for homeowners looking to consolidate debt or transition from an adjustable-rate mortgage (ARM) to a more stable fixed-rate loan while taking advantage of the program’s competitive rates and reduced mortgage insurance premiums. At PDCU, our knowledgeable Fannie Mae mortgage team is here to assist you through every step of the home-buying process, ensuring you find the right loan to meet your needs. As a member-owned credit union, we put your best interests first, offering personalized service and expert guidance.

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Schedule an appointment at one of our branches for a variety of services, including opening new accounts or membership, getting assistance with card services like issuing a new debit card or applying for a credit card. Book an appointment today for personalized, one-on-one assistance from our team. Schedule an Appointment

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.

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 ID: #401292

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.

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 less than 20% down. It increases the cost of the loan, but it may also help you qualify for a mortgage sooner if you do not have a larger down payment.

When PMI may be removed

In many cases, you can ask to remove PMI once your loan balance reaches 80% of the home’s original value and you meet the lender’s requirements. In general, PMI is automatically terminated when your loan balance is scheduled to reach 78% of the home’s original value, as long as your loan is current.

Need help?

If you have questions about PMI or your mortgage options, connect with a mortgage loan officer for personalized guidance.

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 professional or lender. It can also help you confirm who you are working with when you review mortgage advertisements, emails, disclosures, and loan documents.

Where you may see it

You may see an NMLS ID on mortgage websites, marketing materials, email signatures, loan paperwork, and other mortgage-related communications. If you want to look up a mortgage professional or lender, you can search the NMLS Consumer Access website.

Need help?

If you have questions about an NMLS ID or want help identifying the mortgage professional working with you, call 844-700-7328 during business hours.

To apply for a mortgage, you will need to provide the following documents to verify your identity, income, assets, and employment. Required Documents & Why They are Needed

• Copy of your driver’s license or state-issued ID – Verifies your identity and legal name.
• Last 2 years of W-2 forms – Prove your employment history and income stability.
• Most recent 30 days of pay stubs – Shows your current income and allows us to calculate your debt-to-income ratio accurately.
• Last 2 years of Federal Tax Returns (including all schedules) – Confirms your reported income and helps lenders assess your overall financial picture.
• Most recent two months of bank statements (all pages) – Verifies your assets, down payment funds, and that you have enough reserves after closing.
• Contact information for your homeowner’s insurance agent – Required to set up the proper insurance coverage for the property at closing.

Why These Documents Matter Lenders use these documents to confirm you can afford the loan and meet underwriting guidelines. Having them ready when you apply can shorten your approval time from weeks to days. 5 Helpful Hints When Preparing Mortgage Documents

1. Gather everything before you apply — it can save you weeks of delays.
2. Make sure all pages of the bank statements are included.
3. Include all W-2s and tax returns, even if you filed jointly.
4. Scan or take clear photos of your documents for easy upload.

To check the status of your loan application, contact People Driven Credit Union at 248-263-4100 during business hours or reach out to your assigned loan specialist if you have their contact information. Be ready to verify your identity and share details such as your name, member number, or application number so we can review your application with you.

When you check your status, it is also a good idea to ask whether any additional documents or information are needed to keep your application moving. Review times can vary based on the loan type and the information required, so contacting us directly is the best way to get the most current update on your application.