Today, Fannie Mae announced a new lending product, the HomeReady mortgage, which is intended to help creditworthy borrowers with low and moderate incomes to gain access to a mortgage. In order to qualify for the HomeReady mortgage, borrowers will be required to complete an online education course, called “Framework”, to educate and prepare them for the home buying process.

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. This includes allowing income from non-occupant borrowers, such as parents, and rental payments, such as from a basement apartment, to be included in a borrower’s qualifying income. Down payments for a HomeReady mortgage can be as little as 3% and will be available for first-time and repeat homebuyers.

Fannie Mae expects to provide additional detail to lenders through a Selling Guide announcement in the coming weeks. HomeReady guidelines will be included in the Desktop Underwriter in late 2015 and will automatically flag borrowers that are potentially eligible for a HomeReady loan.  It is also expected that Fannie Mae will accept home deliveries under the HomeReady guidelines beginning in late 2015.