Originating & Underwriting

HomeReady Mortgage

The 2024 area median incomes (AMIs) have been implemented in Desktop Underwriter®(DU®), Loan Delivery, and the Area Median Income Lookup Tool. At a FIPS-level, 79.6% of AMIs increased for 2024, meaning more borrowers may meet AMI requirements.


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. For more details, please read Lender Letter LL-2024-01 released on January 24, 2024. 

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.

Tim McCallum, SVP, head of Single-Family Account Management, shares our newest innovation to increase homeownership opportunities.

New: Expanded time allowed to complete housing counseling for $500 LLPA credit

As of 6/5/24 housing counseling from a HUD-approved agency can now be completed any time within the 12 months prior to loan closing to qualify for the $500 LLPA credit on HomeReady® and HFA Preferred™ purchase loans.

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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