HomeReady Mortgage
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.
See what makes HomeReady the way to home for borrowers:
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.
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).
If the tool shows that a property is in a "High Needs Rural Region", the loan may be eligible for LLPA Waivers under Duty to Serve. Learn more.