With just 3% down, flexible funding sources, and reduced mortgage insurance, this low‑down‑payment mortgage opens doors for creditworthy families earning up to 80 % of the area median income.
Verify Your HomeReady Loan Program Eligibility
Flexible. Affordable. Your path to owning a home. The HomeReady® mortgage from Fannie Mae makes buying a home easier for low- to moderate-income families.
With just 3% down, flexible funding options like gifts or grants, and reduced mortgage insurance, this program helps qualified buyers afford a home sooner.
HomeReady is designed for borrowers earning up to 80% of the Area Median Income (AMI) and includes free online homeownership education to set you up for success.
Ready to take the next step? Find out if you qualify and start your journey to homeownership today.
The HomeReady® mortgage is built for real people in everyday situations. Here are some common buyer profiles who gain the most from this program:
| Buyer Archetype | Why HomeReady Fits | Key Advantage |
|---|---|---|
| First-Time Buyers | Struggling with large down payments | Only 3% down required |
| Young Professionals | Have steady income but limited savings history | Flexible funds accepted (gifts, grants, roommate/boarder income) |
| Multigenerational Families | Parents or relatives help with the purchase | Allows non-occupant co-borrowers |
| Single Parents | Need affordable monthly payments and stability | Reduced mortgage insurance + 30-year fixed options |
| Moderate-Income Earners | Earn up to 80% of area median income (AMI) | Tailored for low-to-moderate income households |
| Credit-Builders | Thin credit file or limited history | Alternative credit sources can be considered |
Low Down Payment – Buy a home with as little as 3% down.
Flexible Funds – Use gifts, grants, or other approved sources for your down payment and closing costs.
Lower Monthly Costs – Reduced mortgage insurance compared to standard loans.
Inclusive Income Options – Roommate or boarder income can count toward qualification.
Support for Co-Borrowers – Non-occupant co-borrowers (like parents) are allowed to help you qualify.
Homeownership Education – Free online course gives you confidence and tools for long-term success.
HomeReady® is open to both first-time and repeat buyers, as long as the property will be their primary residence. Buyers may also have co-borrowers (like parents) who do not live in the home.
Applicants generally need a minimum 620 credit score and must have household income at or below 80% of the Area Median Income (AMI) for the property location. Debt-to-income (DTI) ratios can go up to 50% with strong credit and automated approval.
Eligible homes include single-family houses, condos, townhomes, and 2- to 4-unit properties (if the borrower lives in one unit). Vacation homes and investment properties are not allowed.
At least one borrower must complete a free online homeownership education course. The buyer must also live in the home as their primary residence. A small personal contribution is required if using rental or gift funds for the down payment.
To qualify for HomeReady®, your household income must be at or below 80% of the Area Median Income (AMI) where the home is located. Limits vary by county and are updated every year.
For purchase price, HomeReady follows the conforming loan limits set by Fannie Mae:
Most areas (2025): up to $806,500 for a one-unit home
High-cost areas: up to $1,209,750
Example: If the median income in your county is $100,000, the HomeReady income cap would be $80,000 (80% of AMI).
Use Fannie Mae’s AMI Lookup Tool to check your county’s exact income limit.
Getting into your new home with HomeReady® is simple.
See in minutes if you meet the income, credit, and property requirements.
Have your ID, pay stubs, W-2s or tax returns, bank statements, and any gift fund paperwork ready.
At least one borrower must take the free online course required by Fannie Mae.
Submit your application through a lender that offers the HomeReady program.
Know your budget and start your home search with confidence.
Your down payment and closing costs are covered at closing, and you get the keys.
Below are the most common questions homebuyers ask about the Fannie Mae HomeReady® mortgage program.
It’s a Fannie Mae conventional mortgage designed for low- to moderate-income buyers with just 3% down.
Borrowers with income at or below 80% of the Area Median Income (AMI) in their county.
No — both first-time and repeat buyers can qualify if the home is their primary residence.
A minimum 620 credit score is needed.
Single-family homes, condos, townhomes, and 2–4 unit properties (if one unit is owner-occupied).
Yes, gifts and grants are allowed to cover down payment and closing costs.
Yes, but it’s reduced compared to standard loans.
Yes, documented rental income from a roommate/boarder can help qualify.
Yes, parents or relatives can co-sign even if they don’t live in the home.
Yes, at least one borrower must complete a free online homeownership education course.
Navigating mortgage programs can feel overwhelming, but you don’t have to do it alone.
Our team has deep experience with Fannie Mae programs, first-time buyer assistance, and income-based eligibility rules.
We’ll walk you through every step, from checking your eligibility to closing on your new home.
Whether you need help understanding income limits, finding the right property type, or combining HomeReady with down payment assistance, our experts are here to make the process simple and stress-free.
Start with a free eligibility check today and get personalized guidance tailored to your situation.
