Flips Just Became Easier by Fannie Mae

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"HomeReady will be available to borrowers at any income level for properties in designated low-income census tracts, and to borrowers at or below 100% of area median income (AMI) for properties in high-minority census tracts or designated natural disaster areas. For properties in remaining census tracts, HomeReady borrowers must have an income at or below 80% of AMI. Approximately half of census tracts will be subject to the 100% AMI limit or have no income limit. HomeReady income guidelines are reflected in maps available on Fannie Mae’s website. These AMI eligibility determinations will be made in Desktop Underwriter when the lender submits the loan file. Later this year, Fannie Mae will provide online tools to help lenders determine specific income guidelines for HomeReady in their areas."

Income requirements are grouped under household related or unrelated members living under 1 roof . This opens a large untapped source of new home owners 

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"For the first time, income from a non-borrower household member can be considered to determine an applicable debt-to-income ratio for the loan, helping multi-generational and extended households qualify for an affordable mortgage. Fannie Mae’s research indicates that these extended households tend to have incomes that are as stable or more stable than other households at similar income levels, positioning them well for homeownership. Other HomeReady flexibilities include allowing income from non-occupant borrowers, such as parents, and rental payments, such as from a basement apartment, to augment the borrower’s qualifying income. First-time and repeat homebuyers can purchase a home using HomeReady with a down payment of as little as 3%."

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