Parkside Lending, a national wholesale and correspondent lender, is now offering Fannie Mae’s HomeReady Mortgage, an affordable lending option for low- to moderate-income borrowers who otherwise may not qualify for a conventional Fannie Mae loan.
The loan underwriting guidelines include lower down payment requirements, flexible income from non-traditional sources, and reduced mortgage insurance coverage for FICOs 680 or higher that can be removed before the life of the loan.
HomeReady, which was recently expanded to reach more borrowers, is the successor to Fannie Mae’s MyCommunity Mortgage program. Freddie Mac offers a similar program, called Home Possible Advantage, and the Federal Housing Administration (FHA) already offers loans to qualified low-income borrowers with as little down as 3.5%. All three programs are part of the government’s effort to boost homeownership among those with low to medium incomes. All three require borrowers to take an online course in order to qualify.
“As a company that is exclusive to the wholesale and non-delegated correspondent channels, Parkside’s top priority is to provide mortgage professionals with a wide range of products that meet their borrowers’ varying needs,” says James Lamparter, executive vice president of sales for Parkside Lending. “We care that there are options for creditworthy borrowers of any circumstance. Combined with our recently expanded FHA guidelines, adding HomeReady allows Parkside to support an even broader segment of the mortgage market.”