FANNIE MAE HOMEREADY®

A flexible, low down payment loan program
If you’re a homebuyer with a good credit history and a stable job, but not a lot saved for a down payment, the Fannie Mae HomeReady® mortgage may be for you.

HomeReady is a fixed-rate affordable housing program for low-to-moderate income borrowers with as low as a 3% down payment or up to 97% financing.

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Ideal HomeReady Borrowers:

  • Low income
  • First-time home buyers
  • Limited cash for down payment
  • Credit score ≥ 620; borrowers with credit scores of 680 and higher may get even better pricing
  • Supplemental boarder or rental income
  • Looking to purchase or refinance

HomeReady Is Flexible to Match Your Lifestyle

  • As low as 3% down payment.
  • Flexible funding for down payment or closing costs can come from multiple sources, including, gifts, grants from lenders or other eligible entities, and more, with no minimum personal funds required.
  • Qualifying income can include rental or boarder income, including income from Accessory Dwelling Units.
  • Reduced MI (mortgage insurance) coverage requirement above 90% LTV; cancellable MI once the borrower’s equity reaches 20% (restrictions apply).
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Homeownership Education Requirement (HomePossible & HomeReady)

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 about Fannie Mae’s HomeView™ education courses.