Each Lender must determine borrower and loan eligibility in accordance with the Selling Guide and its Lender Contract. Nothing in this service is intended to vary or modify any of Lender's obligations under its Lender Contract.
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
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.
Learn More
Rental Income
Qualifying income can include rental or boarder income, including income from Accessory Dwelling Units.
Learn about ADUs
Simplicity
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).
Click here for more information on any of the features above.
HomeReady Comparison
BenefitsHomeReadyFHARequired down payment3%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
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. Go to AMI Lookup ToolArea Median Income Lookup Tool
You can also download Income Eligibility by county (excel).
Additional Resources
Related Resources
- Fannie Mae HomeView™
- Affordable Housing Initiatives
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