Low Down Payments
HomeReady allows homebuying down payments as low as 3%. And, no minimum contribution is required from the borrower’s own funds for down payment or closing costs (1-unit properties).
• Low down payment; as little as 3% down for home purchases
• Flexible sources of funds with no minimum contribution from borrower’s own funds
• Non-occupant borrowers permitted
• Cancellable mortgage insurance (restrictions apply)
• Reduced MI coverage requirement for loan-to-value ratios above 90% (up to 97%)
• Pricing is better than or equal to Fannie Mae’s standard loan pricing (risk-based pricing waivers for LTV ratios > 80% with a credit score ≥ 680)
Q. Which lenders offer HomeReady? A. Nearly all major lenders. Ask your local lender about Fannie Mae’s affordable home mortgage option.
Q. How do I find out the income limits in Phoenix, AZ and other information about HomeReady? A. Visit for more information on HomeReady, including the mobile-friendly income eligibility lookup tool. You may be a good prospect for HomeReady if you: • Have limited cash for down payment • Have a credit score ≥ 620; borrowers with credit scores ≥ 680 may get even better pricing • Have low income • Are first-time or repeat home buyers • Want to refinance to lower their monthly payments.
Q. What flexibilities does HomeReady offer? A. Co-borrowers who don’t live in the property can be included on the mortgage. Boarder income and rental income from an accessory dwelling unit may help buyers qualify.
Q. How do monthly payments on a HomeReady mortgage compare to those on government mortgages, such as FHA? A. Because mortgage insurance on a conventional HomeReady mortgage may be canceled over time, HomeReady could cost less per month in just a few years. See a product comparison at
Have low income
Are first-time or repeat homebuyers
Have limited cash for down payment
Have a credit score ≥ 620; borrowers with credit scores ≥ 680 may get even better pricing
Have supplemental boarder or rental income
Are looking to purchase or refinance
Cancellable Mortgage Insurance*
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
With HomeReady, cash for down-payment and closing costs can come from multiple sources, including gifts, grants, and Community Seconds ® - with no minimum personal funds required.