HomeReady® Refinance Loan Program The HomeReady® Refinance Loan Program is a Fannie Mae–backed option designed to help low- to moderate-income homeowners refinance their existing mortgage with flexible qualification guidelines. This program allows eligible borrowers to lower their interest rate, reduce monthly payments, or improve loan terms while benefiting from reduced mortgage insurance costs. HomeReady refinances are ideal for borrowers who may not qualify for traditional conventional refinances but have stable housing history and responsible credit.
Who Is a HomeReady Refinance For? You may qualify for a HomeReady refinance if you: Meet income eligibility limits based on property location Own a primary residence Have limited savings but stable income Want to refinance with lower PMI costs Are a first-time or repeat homeowner
Key Benefits Reduced private mortgage insurance (PMI) compared to standard conventional loans Flexible income sources allowed (including household income) Lower down payment and equity requirements (program dependent) Available for rate-and-term refinances Education requirement may apply for first-time buyers
What You Can Do With a HomeReady Refinance Lower your interest rate Reduce your monthly mortgage payment Switch loan terms (ARM to fixed, or vice versa) Improve overall loan affordability
What to Expect HomeReady refinance loans typically require: Income eligibility verification Credit and underwriting review Property appraisal (program dependent) Completion of a homeownership education course (if required)