Fannie Mae’s Instant Underwater Mortgage (HomeReady)!

Fannie Mae, the Washington DC mortgage giant, has announced their latest program: HomeReady. According to Fannie Mae, ‘HomeReady is designed for creditworthy, low- to moderate-income borrowers, with expanded eligibility for financing homes in designated low-income, minority, and disaster-impacted communities. HomeReady lets you lend with confidence while expanding access to credit and supporting sustainable homeownership.’
The confidence part sounds like a Viagra or Cialis commercial.
Here is the product matrix for HomeReady, showing borrowers that they can obtain a 3% downpayment mortgage with no minimum cash contribution!
Of course the lender should feel safe – taxpayers are backing these risky mortgages … again.

This post was published at Wall Street Examiner by Anthony B. Sanders ‘ November 2, 2015.