Fannie Mae issued Selling Guide Announcement SEL-2016-05 (Announcement). The Announcement updates the HomeReady mortgage loan product. The updates: allow an occupant borrower of a HomeReady loan to own other residential properties; remove the homeownership education requirement for limited cash-out refinance transactions; eliminate the landlord education requirement for HomeReady loans secured by two-, three, or four-unit properties (however, homeownership education is still required); delete references to post-purchase early delinquency counseling requirements; permit acceptance of homeownership education from Community Seconds® or Down Payment Assistance Program (DPAP) providers (if the providers are HUD-approved counseling agencies and the first mortgage loan involves a Community Second or DPAP); and allow a borrower to obtain customized one-on-one assistance from a HUD-approved nonprofit counseling agency to meet the homeownership education requirement.
Click here to view the Fannie Mae Selling Guide Announcement
