Originating & Underwriting

HomeReady Mortgage

Built with today’s homebuyers in mind

Our low down payment HomeReady® Mortgage is designed to help lenders confidently serve today’s credit-worthy low-income borrowers. 

Ideal HomeReady Borrowers

  • Low income
  • First-time or repeat homebuyers
  • Limited cash for down payment
  • Credit score ≥ 620; borrowers with credit scores ≥ 680 may get even better pricing
  • Supplemental boarder or rental income
  • Looking to purchase or refinance

Homeownership Education Requirement

If all borrowers are first-time homebuyers, then at least one borrower is required to take homeownership education, regardless of LTV.  Learn more.

Why Choose HomeReady? The benefits are clear.

As Low as 3% Down Payment

Low down payment for home purchase or refinance transactions.

Flexible Funding

Cash for down payment or closing costs can come from multiple sources, including gifts, grants and Community Seconds®, with no minimum personal funds required.

Competitive Pricing

Better than or equal to Fannie Mae’s standard loan pricing (risk-based pricing waivers for LTV ratios > 80% with a credit score ≥ 680).

Simplicity

Combine standard and HomeReady loans into MBS pools and whole loan commitments.

Affordable Mortgage Insurance

Reduced MI coverage requirement above 90% LTV; cancellable MI once the borrower’s equity reaches 20% (restrictions apply).

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

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    

 

Area Median Income Lookup Tool

Use the interactive map to quickly find HomeReady income limits by area. Simply search by address or view the areas you serve.

Find Eligibility

Related Resources

Additional Resources

There has never been a greater need for a product like HomeReady. Now is the time when affordability on entry-level homes is the biggest challenge we see people face today.

Kate Amor, Finance of America Mortgage

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We really strive to find products that will put our members in a better financial situation, so we were delighted to offer HomeReady based on our financial values and corporate mission statement

Zakary Short, Utah Community Credit Union

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Fannie Mae continues to seek different ways to reach potential homeowners and also takes into consideration sustainable homeownership.

Isa Backley, BECU

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