Buying Your First Home with the HomeReady Program: What You Need to Know

Home / Blog / Buying Your First Home with the HomeReady Program: What You Need to Know

Buying Your First Home with the HomeReady Program: What You Need to Know

If you want to make buying your first home a reality, there are numerous programs that are now available to help you accomplish just that. The HomeReady mortgage program offers an affordable home loan that is designed to accommodate the diverse financial needs of creditworthy, responsible buyers. You may qualify for features such as a low down payment and a fixed mortgage.

How HomeReady Works

HomeReady offers a fixed rate mortgage up to $453,100 with a lower down payment. The program includes flexible income requirement guidelines as well.

Qualifying for a HomeReady Mortgage

The criteria to qualify for a HomeReady mortgage are:

  • Fixed rate mortgage loan of up to $453,100
  • A single family accessory unit or income from a renter may be used to qualify
  • Single family units, condominiums, or PUDs may qualify for the owner’s primary residence

Benefits of the Fannie Mae Mortgage Program

In addition to the low down payment and flexible income qualification guidance, a community seconds loan or gift funds may be used towards the down payment. This means that not all of the down payment must come from your personal funds. In addition, you may be able to use a co-borrower’s income, even if they are not occupants of the primary residence, to help qualify for the mortgage. HomeReady may have other options such as reduced mortgage insurance, no upfront fees for mortgage insurance, and cancellation options set by Fannie Mae guidance.

Flexibility and Features

The HomeReady program addresses many of the most common financial challenges home buyers face by offering flexibility and these features:

  • A lower percent down payment option. Both first-time and repeat buyers may qualify for the mortgage with only 3 percent of the home purchase price as down payment.
  • Flexibility for co-borrowers. Not all of the borrowers are required to live in the primary home. This means that parents or other individuals can help you qualify for the loan, although some income limits may come into play.
  • Non-conventional income sources. You may be able to use rental income as a qualifying source of income, such as rental payments from a granny flat.

Educational Requirements

The HomeReady mortgage program also requires the completion of a home ownership education course to help you prepare for the obligations ahead. You may take a course online, or you may seek one-on-one personalized assistance to meet the education requirement.

The HomeReady program offered by Fannie Mae may be just the right program for you. If you need a low down payment option, co-borrower options, and flexible income guidelines, you will want to learn more about this particular mortgage offering. Go to to learn more about this and other mortgage products that can help you get in your dream home.

dc85f617 fac9 432c abb6 41ff165abbf2 b1ee246d a48b 46d9 b036 d4315e1eeeeb 0d3c1715 b811 45a6 9f1c 73c2534d15f6 c637eb76 47e7 404f bf1a a3ecaf1b99a4 24d5b1ae 82b1 4d24 9762 bccf76553299 7a1f3aa0 990a 4be1 bce0 ab65de168b8d 6584396b f0a8 4790 a31d aa9a337c06fa 6375af9c 3261 44a8 be76 96fdac47a258 0c9bd943 d347 4693 82ff 5a727ee6c36c 18b9b2a6 09fd 4b00 9c28 6b2f253cc0ac 612e1bc3 3f0b 4d9a 95a4 15374808fe95 14d9877d 3867 4095 a740 68df46a9b0d6 0e63cff9 03c5 45ec 820c 8b9fb0375e1f 6972a51f 0e76 4d52 8155 994f73e17e41 0c4fad3d f8b1 40b2 b9a8 4e5f936fc2e5 a352041e 0b8b 4b64 95d6 598dc90fc58d 4c65b58e f9db 4963 8e82 c4465cd1a0c1 829a9cac 3958 4f1d 9eb3 df80bcd3d564 d1e5e2a1 cdd5 4c99 a6bf 99b8b5f8e931 5d365525 1fa3 47b7 ba1e f053a996ddb8 95bd5a7b 2bcc 4bea aa22 d954d63a0c72 a26c475e f100 4001 af96 c052cd0b5778 4eb3a83d 5d93 4797 a72b 4b3b5b21ffc0