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 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).
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
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