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 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.
Why Choose HomeReady? The benefits are clear.
As Low as 3% Down Payment
Low down payment for home purchase or refinance transactions.
Flexible funding for down payment or closing costs can come from multiple sources, including, gifts, grants and Community Seconds®, with no minimum personal funds required.
Better than or equal to Fannie Mae’s standard loan pricing (risk-based pricing waivers for LTV ratios > 80% with a credit score ≥ 680).
Qualifying income can include rental or boarder income, including income from Accessory Dwelling Units.
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).
|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.
Note: 2022 AMI limits will be available on the AMI Lookup Tool on July 18, 2022.
Read Lender Story
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