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HomeReady®
Flexible financing solutions tailored for low to moderate income borrowers, making the path to homeownership more attainable.
own your home with less down
affordable mortgage with just 3% down + lender credit for qualifying buyers
Saving for a down payment is one of the biggest hurdles to homeownership. The HomeReady® Loan, backed by Fannie Mae, helps qualified members purchase a home with as little as 3% down1 and includes reduced mortgage insurance.
This fixed-rate mortgage is available for primary residences and is ideal for both first-time and repeat buyers. It allows you to use a mix of funds as part of your down payment—so your personal savings don’t have to cover it all.
Our local mortgage advisors are ready to walk you through your options and guide you from pre-qualification to closing.
Features
- Just 3% down1 – Low upfront cost for qualified buyers, which can come from various sources
- Fixed Rate Mortgage (FRM) – Locks in a predictable monthly payment
- Primary residence only – Ideal for one-unit, owner-occupied homes
- Flexible funding sources – Use gifts, grants, lender programs, or rental income
- Reduced private mortgage insurance – Lower mortgage insurance requirements and cancelable at 80% LTV
- Supports first-time & repeat buyers – Designed for a range of financial situations
Ideal For:
A HomeReady® Loan, backed by Fannie Mae is especially well-suited for home buyers who may have a 620+ credit score, steady low to moderate income, but limited cash to put down for a down payment.
Frequently Asked Questions
A: HomeReady® is designed for low to moderate income borrowers. Most applicants must earn no more than 80% of the area median income (AMI) for the property's location.
You can look up income eligibility using Fannie Mae’s AMI lookup tool or connect with a Mortgage Advisor to confirm your eligibility.
A: HomeReady® allows qualified borrowers to purchase a home with as little as 3% down. Your down payment can come from a mix of sources, including savings, gifts, grants, and certain lender or community programs.
A Mortgage Advisor can explain which funding sources qualify for your down payment.
A: Yes. HomeReady® includes reduced private mortgage insurance (PMI) coverage compared to standard conventional loans. PMI can also be canceled once your loan reaches an eligible loan-to-value (LTV) ratio, typically around 80%.
To see how reduced PMI affects your monthly payment, talk with a Mortgage Advisor.
A: HomeReady® is available for one-unit, owner-occupied primary residences. This includes single-family homes, approved condos, and some manufactured housing that meets program requirements.
If you're unsure whether a property qualifies, a Mortgage Advisor can review the property type with you.
A: Yes. Generally, at least one borrower must complete a homeownership education course when applying as a first-time home buyer. This requirement helps prepare Members for the responsibilities of owning a home.
Your Mortgage Advisor can help you access the approved education provider.
A: Yes. HomeReady® allows certain types of rental income—such as income from a roommate who will live with you. To be considered as part of your qualifying income when program requirements are met. This can help more borrowers meet the debt-to-income (DTI) guidelines.
If you plan to use rental income, a Mortgage Advisor can help determine what qualifies.
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explore our mortgage calculators
Understanding your mortgage options can make a big difference in your financial future. Our mortgage calculators help you figure out monthly payments, estimate costs, and explore loan types to find what works best for you. Whether you’re buying a home, refinancing, or planning for the future, these tools give you the information you need to make confident choices.
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Offer and terms subject to change. Loans subject to credit and collateral approval. Rate and term based on individual credit history and program guidelines. Consult a mortgage advisor for more details. HomeReady® is a registered trademark of Fannie Mae.
[1] For qualified borrowers. For more information, visit: fanniemae.com/homeready Payment example, $258,750 retail value of property with 3.5% down amounts to financing $250,000 financed for 360 months at an adjustable rate of 6.421% APR equals a monthly payment of $1,539.29. Payment example does not include amounts for taxes and insurance premiums. If applicable, actual payment obligation will be greater. Rate may be increased after consummation.