Originating & Underwriting

HomeReady Mortgage

HomeReady® Updates
Fannie Mae’s Lender Letter released on Jan. 24, 2024 announced new enhancements to the HomeReady mortgage product. See details below or read more in Lender Letter LL-2024-01.

 

Designed to give today's homebuyers more options
Dad and daughter in kitchen

New HomeReady features offer increased access to homeownership

With a low down payment and expanded financing flexibility, HomeReady offers an ideal solution that works for today's creditworthy low-income borrowers-whether they're first-time or repeat buyers.

A new benefit of a $2,500 credit for very low-income borrowers can help overcome two of the greatest barriers to homeownership—down payment and closing costs.

In addition, lenders can lock in margins, reduce hedging costs, and take advantage of an enhanced best efforts commitment with pricing similar to a mandatory commitment.

Click here for more information on any of the features above.

*For whole loans purchased on or after March 1, 2024, to February 28, 2025, and for loans delivered into mortgage MBS with issue dates on or after March 1, 2024, to February 1, 2025.

Ideal HomeReady Borrowers

  • Low income
  • First-time or repeat homebuyers
  • Limited cash for down payment
  • Supplemental boarder or rental income
  • Looking to purchase or refinance

Homeownership Education Requirement

If all occupying borrowers are first-time homebuyers, then at least one borrower is required to take homeownership education, regardless of LTV. Fannie Mae HomeView® can be used to satisfy the homeownership education requirement.

Learn more

HomeReady Comparison

Benefits HomeReady FHA
Required down payment 3% 3.5%
Cancellable mortgage insurance**    
Immediate appraisal orders from lenders    
Free from geographic restrictions on loan amounts    
Day 1 Certainty® freedom from reps & warrants available    

**When a grant from a lender is used, a minimum borrower contribution of 3% must be made from either the borrower's funds or another acceptable source.

 

 

Area Median Income Lookup Tool

Use the interactive map to quickly look up income eligibility by area, property address or Federal Information Processing Standards (FIPS) code.

For Area Median Income Lookup Tool Tips click here.
You can also download Income Eligibility by county (excel).

Go to AMI Lookup Tool

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