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To help open up homeownership to more creditworthy borrowers, Fannie Mae is introducing HomeReady, a new lending option for those with lower incomes that also takes into account income from multi-generational and extended households when qualifying potential borrowers.

"HomeReady will help qualified borrowers access the benefits of homeownership with competitive pricing and sustainable monthly payments," said Jonathan Lawless, vice president for underwriting and pricing analytics at Fannie Mae. "We are also confident this mortgage option will create business opportunities for lenders serving the changing demographics and borrower needs seen in today's market."

HomeReady will replace Fannie Mae's MyCommunityMortgage program and will be available this year. The program is only available to low-income borrowers or those living in low-income or minority-dominated areas.

To participate in the program, borrowers will be required to complete an online education course that will prepare them for the home-buying process. This program allows income from a non-borrower household member to be considered when determining if a borrower is creditworthy. The program also allows for the income of non-occupant borrowers, such as parents and an attached rented out rental suite, to supplement the borrower's qualifying income. First-time and repeat homebuyers can use this program with a down payment as low as 3 percent.

Fannie Mae will provide additional details to lenders soon through a Selling Guide announcement.