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.
See what makes HomeReady the way to home for borrowers:
New $2,500 Borrower Credit
Very low-income purchase borrowers can get $2,500 in down payment or closing cost assistance.*
New Enhanced Best Efforts Commitment
With improved certainty upfront, you can pass HomeReady price benefits straight to borrowers.
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 from lenders or other eligible entities, and Community Seconds®, with no minimum personal funds required.
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).
*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.
|Required down payment
|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.
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
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.