HomeReady Loans
What is a HomeReady Loan?
The HomeReady loan program from Fannie Mae is designed to make becoming a homeowner easier for buyers that quality under low-to-moderate income guidelines. Additionally, it's available to both first-time and repeat buyers, and also provides flexible ways to qualify that other programs may not.
Key Benefits
Key benefits of HomeReady loans include:
- Down payments as low as 3%.
- The full down payment can come from gifts, grants, cash on hand, or assistance programs.
- A $2,500 credit is available for very low-income first-time buyers, applied toward down payment or closing costs (for loans purchased March 1, 2025 through February 28, 2026).
- Lower-cost mortgage insurance that can be canceled later under certain conditions.
- Positive rent payment history can be counted to help you qualify.
- Faster processing with immediate appraisal ordering.
Flexible Income Guidelines
- You can use income from a co-signer who isn’t going to live in the home.
- Household income from family members who aren’t on the loan can sometimes help strengthen your application.
- If you’ve had a roommate paying rent for at least 12 months, that income can count toward qualifying.
- Rental income from an accessory dwelling unit, like a basement apartment or garage suite, can also be included, even if you’ve never been a landlord before.
Income Limits & Eligibility
- Most areas set the income limit at 100% of the area median income (AMI).
- There’s no income limit if the home is in a low-income census tract.
- High-minority and disaster-designated areas are also eligible up to 100% of AMI.
- Recent updates increased AMIs in over 93% of areas, which makes it easier for more borrowers to qualify.
Other Requirements
- You’ll need a credit score of at least 620 to qualify, though a higher score (680 or above) usually comes with better terms.
- First-time buyers are required to complete a homeownership education course, and Fannie Mae’s HomeView® program meets that requirement.