Just Approved: Home purchase with Fannie Mae’s HomeReady program, 3 percent down payment

Mortgage broker:

Dominique Stevens.

Property type: Single-family home in Davis.

Purchase price: $400,000.

Loan amount: $388,000.

Loan type: 30-year fixed.

Rate: 4.5 percent with no points.

Backstory: A couple wanted to make the break from their fast-paced Bay Area life and move somewhere quieter and less expensive.

Their strategy was to keep their Oakland home as a rental, and to move to Davis to enjoy the peace and quiet and lower housing costs.

While the couple had good income and great credit, they had very little in the way of savings to make this dream a reality.

Dominique Stevens determined the Fannie Mae HomeReady program would be a perfect solution. It’s a 30-year fixed rate loan with only a 3 percent down payment requirement and monthly mortgage insurance.

The program is available for primary residences only. Though the couple planned to rent out their Oakland home, Stevens was able to clear the hurdle by having the borrower write a letter of explanation that they would be converting their primary residence into a rental. Along with the letter, she had the appraiser supply a report of the expected rent value of their Oakland home so that underwriters could calculate the rental income in their debt-to-income rations.

Once the couple had achieved a fully underwritten approval from Stevens, all that was needed was to receive the appraisal and close the loan. The escrow closed in 15 days after the offer was accepted.

Dominique Stevens,

Mayfair Mortgage Advisers,

(415) 250-8908, dstevens@mayfairmtg.com.