What a HomeReady Loan Is
HomeReady is Fannie Mae's affordable program for creditworthy low-to-moderate-income borrowers, allowing 3% down, reduced mortgage insurance, and flexible income and down-payment sources.
Who It's For
- Low-to-moderate-income buyers within program limits
- Multi-generational households with multiple income sources
- First-time buyers needing flexible down-payment sources
- Borrowers wanting reduced PMI versus standard conventional
How It Works
HomeReady allows 3% down with mortgage insurance priced below standard conventional, and counts flexible income — including non-borrower household and boarder income — toward qualification. Area-based income limits apply.
Frequently Asked Questions
What are the income limits for HomeReady?
Limits are based on the property's area median income. Some areas have no limit. We can check the limit for the home you're considering.
Can I use income from household members who aren't on the loan?
Yes — HomeReady allows certain non-borrower household income and boarder income to support qualification, which is one of its distinctive features.
Is the mortgage insurance cheaper?
HomeReady offers reduced mortgage insurance compared to standard conventional loans, and it can be cancelled at 20% equity.