HomeReady® is Fannie Mae’s flagship affordability product. It’s designed to serve more low and moderate-income creditworthy borrowers. It offers reduced mortgage insurance costs and lower loan level pricing adjustments for loans with low down payments.
- Loan Amounts $75,000 and may go up to:
- $1,089,300 (1-unit)
$1,394,775 (2-unit)
$1,685,850 (3-unit)
$2,095,200 (4-unit) - Click here to see your max county limit
Minimum credit score 620. If there is more than one borrower, we will use the lowest middle score among all borrowers.
- Single Family Home
- Condominium
- 2-4 Unit Properties
This program aims to help meet the diverse needs of today’s buyers. It is designed for creditworthy, low to moderate income borrowers, with expanded eligibility in designated low-income communities.
If your income fits the home ready income limit in the area you wish to buy or refinance (primary residence only), you can possibly use this program for financing. It could possibly offer discounted interest rate pricing if that is the case. Searching for the address of the property you wish to purchase, you will be given the maximum amount of income you can make to achieve this program.
This program offers 30 Year, 20 Year, 15 Year and 10 year Fixed rate programs.
Tips
It can be difficult to use this program. We often see that income levels exceed what is allowed for the area a client wishes to buy. This program doesn’t always “work” in that sense, but if you can locate a property and you are at or below that income level stated, you can attempt to obtain this product.
Home Purchase
Down Payments
Minimum Down Payments are the following:
Loan Size up to $726,200 for one-unit properties:
- 1-Unit, maximum 97% loan to value, 620 credit score
- 2-Unit, maximum 85% loan to value, 620 credit score
- 3-4 Units, maximum 75% loan to value, 620 credit score
Loan Size $726,201 up to $1,089,300 for one-unit properties (depends on county)
- 1-Unit, maximum 95% loan to value, 620 credit score
- 2-Unit, maximum 85% loan to value, 620 credit score
- 3-4 Units, maximum 75% loan to value, 620 credit score
Mortgage Insurance
Mortgage Insurance will be required on any loan over 80% loan to value.
Qualifications
Debt-to-Income ratios can go up to 50%. This will depend on your loan scenario specifically.
Borrower income level cannot be higher than the stated limit in the Home Ready lookup tool, which you look up by property address (that you wish to purchase/refinance).
For purchase transactions at least one borrower must complete the Framework Homeownership Education course.
Refinance Your Home
Loan to Value
Primary Residence Refinances have the following limitations:
- 1-Unit, maximum 97% loan to value, 620 credit score
- 2-Unit, maximum 85% loan to value, 620 credit score
- 2-4 Units, maximum 75% loan to value, 620 credit score
Qualifications
Debt-to-Income ratios can go up to 50%. This will depend on your loan scenario specifically.
Borrower income level cannot be higher than the stated limit in the Home Ready lookup tool, which you look up by property address (that you wish to purchase/refinance).