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Program: Fannie Mae Home Ready

Detail Verified 12/6/2018 - Last Updated 2/15/2018

Program Overview

A low down-payment program for both first-time and repeat homebuyers with a low to moderate income.

Who is Eligible for this Program?

Borrowers must be at or below 100% AMI and meet the minimum required credit score. There is no income limit in low-income areas.

Borrowers may have interest in other residential property at the time of closing. This program also allows rental (such as income from a basement apartment) and boarder income (income from a roommate).

All borrowers do not have to reside in the property. For example, parents, who won’t be living in the home, can be co-borrowers on the loan to help their children qualify for a mortgage and purchase a home. Income limits may apply.

HUD Median Income Limits: 100%

Is this program for first time buyers only?: No

Property Eligibility Requirements

Allowable property types: Eligible property types include 1-4 unit properties, modular homes, log homes, condos and planned unit developments. Manufactured homes are not eligible.

Benefit Details

This program provides a 3% down payment loan with no minimum contribution from the borrower. Cash for down-payment and closing costs can come from multiple sources, including gifts, grants, cash-on-hand funds and community programs.

Unlike government-insured loans, with HomeReady, borrowers may have the option to cancel their mortgage insurance once their home equity reaches 20%. This can result in lower monthly payments down the road

Benefit:

Loan Term: up to 30 years

Homebuyer Counseling / Education Required: Yes

Owner Occupancy Required: Yes

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