Program: Fannie Mae Home Ready
Detail Verified 1/30/2020 - Last Updated 8/01/2019
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 80% AMI and meet the minimum required credit score.
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.
Is this program for first time buyers only?: Yes
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.
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
Loan Term: up to 30 years
Homebuyer Counseling / Education Required: Yes
Owner Occupancy Required: Yes