Home Ready Program
Making Homeownership More Accessible
The HomeReady mortgage is a Fannie Mae program designed to help low- to moderate-income borrowers buy or refinance a home with flexible requirements and affordable terms.
It’s a conventional loan, meaning it’s not government-insured (unlike FHA or VA), but it offers special benefits that make it easier to qualify - especially for first-time homebuyers.
Key Highlights
Low Down Payment - as little as 3%Borrowers can buy a home with just 3% down, making it easier to get started with less savings.
Flexible Income Options You can use income from roommates, family members, or boarders who live with you to qualify - even if they’re not on the loan.
Reduced Mortgage Insurance Costs Private mortgage insurance (PMI) is required with less than 20% down, but it’s cheaper than standard conventional PMI and can be canceled once you reach 20% equity.
Credit-Friendly Underwriting HomeReady considers alternative credit sources (like rent, utility, or cellphone payments) to help applicants without a long credit history.
Down Payment Assistance (DPA) Compatible You can combine HomeReady with local or state down payment assistance programs, grants, or gifts.
Refinancing Allowed Eligible for rate-and-term refinance to reduce monthly payments or adjust your loan term.
Who Qualifies for Home-Ready To be eligible:
Income: Must not exceed 80% of the Area Median Income (AMI) for the property location.
You can check this using Fannie Mae’s AMI Lookup Tool.
Credit Score: Minimum 620, but better terms with 680+.
Occupancy: Must be your primary residence.
Property Types: 1–4 unit homes, condos, PUDs, and co-ops (if allowed by lender).
Education: At least one borrower must complete a homeownership education course (online or approved by HUD/Fannie Mae).
