HomeReady Mortgage
Help put homeownership within reach for more borrowers
HomeReady® is a flexible mortgage solution that reduces the barriers to homeownership for low-income borrowers. With the consideration of on-time rent payments in loan eligibility, HomeReady can be your key to expanding opportunities for your borrowers — and for your business.
The ideal HomeReady borrowers may be first-time or repeat homebuyers with:
- Low income
- Limited cash for a down payment
- Supplemental boarder or rental income
HomeReady goes beyond affordability to deliver confidence and flexibility for both lenders and borrowers. It empowers more people to achieve homeownership with down payments as low as 3%, no minimum personal contribution required, and access to a wide range of funding sources — including gifts, grants, and Community Seconds®. Together, these innovations make HomeReady a reliable, scalable solution for expanding access to credit and growing your business.
Benefits of HomeReady
Flexible funding
Help borrowers manage down payment and closing costs by allowing them to leverage a variety of sources with no minimum personal contribution required.
Reaches more borrowers
Serve borrowers who may not have qualified for conventional mortgages and open new business opportunities along the way.
As low as 3% down payment
Offer an affordable entry point to homeownership and help eligible borrowers realize their goals.
Affordable mortgage insurance
Provide peace of mind with reduced mortgage insurance requirements and mortgage insurance that can be canceled (restrictions apply).
Immediate appraisal order
Speed up the loan process, minimize delays, and help borrowers reach closing with certainty.
$2,500 borrower credit*
Expand access to homeownership for very low-income first-time homebuyers with down payment or closing cost assistance.
*For whole loans purchased on or after March 1, 2025, to February 28, 2026, and for loans delivered into mortgage MBS with issue dates on or after March 1, 2025, to February 1, 2026.
Area Median Income Lookup Tool
Use this convenient interactive map to quickly identify income eligibility by area, property address, or Federal Information Processing Standards (FIPS) code.
If the tool determines that a property is in a high-needs rural region, the loan may be eligible for Loan-Level Price Adjustment (LLPA) waivers under Duty to Serve. Learn more.
Discover Area Median Income Lookup Tool tips here. Income eligibility by county is also available by download (Excel).
Mastering HomeReady originations
Help advance homeownership with our enhanced education course
To support lenders in originating and delivering HomeReady, we launched our latest comprehensive educational course.
- Provides step-by-step guidance on how to originate HomeReady loans for creditworthy low-income borrowers.
- Offers practical examples and case studies to help lenders navigate common borrower challenges.
- Highlights key features and benefits that enhance borrower accessibility.
Consider on-time rent payments
Borrowers’ rent payment histories can help them qualify for a HomeReady loan. Find out how you can improve credit assessments and put more opportunities within reach.
HomeReady comparison
| Benefits | HomeReady | FHA |
|---|---|---|
| Required down payment | 3% | 3.5% |
| Mortgage insurance that can be canceled | ||
| Immediate appraisal orders from lenders | ||
| Free from geographic restrictions on loan amounts | ||
| Day 1 Certainty® freedom from reps & warrants available |
