Explore HomeReady® Loan
HomeReady® Loan
The HomeReady® Loan is a program designed to help low to moderate-income borrowers afford homeownership. This option offers flexible eligibility requirements, lower down payment options, and reduced mortgage insurance costs.
Best for:
Individuals, Couples, Families
Property type:
1-4 Units
Down payment:
3%
Loan Term:
30 Years
Rate type:
Fixed Rate
Loan Limits:
Conforming
Key Benefits
Affordable Housing
Designed to assist low to moderate-income borrowers in achieving homeownership.
Designed to assist low to moderate-income borrowers in achieving homeownership.
Lower Down Payments
Benefit from lower down payment options compared to conventional loans.
Benefit from lower down payment options compared to conventional loans.
Flexible Sources of Income
Consider a broader range of income sources for eligibility, such as rental income or non-borrower household income.
Consider a broader range of income sources for eligibility, such as rental income or non-borrower household income.
Reduced Mortgage Insurance
Enjoy reduced private mortgage insurance (PMI) costs compared to standard loans.
Enjoy reduced private mortgage insurance (PMI) costs compared to standard loans.
Education Requirements
Complete homeownership education to qualify for the HomeReady® program.
Complete homeownership education to qualify for the HomeReady® program.
Commonly asked questions about HomeReady® Loan
What is a HomeReady Loan?
A HomeReady Loan is a mortgage program designed to make homeownership more accessible, offering flexible eligibility criteria and potentially lower down payments.
Who is eligible for a HomeReady Loan?
HomeReady Loans are targeted to low-to-moderate-income borrowers and may provide special benefits to first-time homebuyers.
What are the benefits of a HomeReady Loan?
Benefits include reduced down payment requirements, potential lower interest rates, and flexible funding sources.
What is the minimum down payment required for a HomeReady Loan?
The minimum down payment requirement can be as low as 3%, making it an attractive option for borrowers with limited funds.
Can I use rental income to qualify for a HomeReady? Loan?
Yes, under certain conditions, rental income from a separate unit on the property can be considered in qualifying.
Are there income limits for HomeReady Loans?
Yes, there are income limits based on the location of the property and the borrower's household size.
Can I cancel mortgage insurance on a HomeReady Loan?
Mortgage insurance cancellation may be possible once the loan-to-value ratio reaches a certain threshold.
Can I use a HomeReady Loan for investment properties?
No, HomeReady Loans are intended for primary residences only.
Are HomeReady Loans available for manufactured homes?
Yes, HomeReady Loans can be used for single-unit manufactured homes that meet certain requirements.
How do I compare HomeReady Loan offers from different lenders?
Collect loan estimates and consider factors like interest rates, fees, and overall terms to determine the best option for your financial situation.
What is the role of homeownership education in HomeReady Loans?
Completing homeownership education may be required for some borrowers and can provide valuable insights for first-time buyers.
Is the HomeReady program backed by the government?
Yes, the HomeReady program is backed by Fannie Mae, a government-sponsored enterprise.
What credit score is needed to qualify for a HomeReady Loan?
Credit score requirements vary, but a higher score can improve your chances of qualifying and obtaining favorable terms.
What is the loan limit for a HomeReady Loan?
Loan limits depend on factors such as the location of the property and whether it is a single-unit or multi-unit dwelling.
Can I refinance my existing mortgage into a HomeReady Loan?
Yes, refinancing into a HomeReady Loan may be possible if you meet the eligibility criteria and program guidelines.