HomeReady Mortgages from Fannie Mae

Fannie Mae recently launched HomeReady Mortgage, a program to make buying a home more flexible for families with a low or moderate income. 

What is HomeReady Mortgage

The HomeReady Mortgage program is designed to help buyers who have good credit, but who may not have enough money for a down payment. It's designed to have a high loan to value ratio with low rates and reduced mortgage insurance costs. 

More flexibility with how you include incomes

The traditional one or two-income house just doesn't fit for everyone. With the HomeReady program, you can be a little more flexible in who's income you include in your mortgage application, which is especially helpful if you have more than one generation living in the same house.  

  • Other adults living with you, like an adult child, who also contributes tot he house. 
  • Family and friends who might be helping you pay the mortgage, but don't live with you. 
  • Are you renting out your basement apartment to help pay the mortgage? You can count that as part of your income under the HomeReady program. 

Online education:

You'll have access to an online program that will help you get ready to buy a home and continue to give you support after you close on your house. 

Do I qualify

In order to qualify for the program, you need:

  • Credit score of 620 or higher
  •  Be below 100 percent of the area median income 
  • Want to buy a single-family home as a primary residence
  • Have a 3% down payment (can be from gifts, grants, or cash on hand)

HomeReady mortgage insurance

Any time you buy a home without putting 20% down, you have to pay mortgage insurance--and a HomeReady mortgage is no exception. The good news is the program keeps these fee relatively low and allows it to be canceled once you reach 80% loan to value on your home. 

Does HomeReady sound like the right program for you? Learn more at the Fannie Mae website