Infographic describing "HomeReady" loan program requirements: Max LTV 97%, Minimum FICO 620, property types include Single Family, Condo, TWN, Multi, Manu. Occupancy Types listed as Primary. Loan terms 8-30 years in 1-year increments. Income must be less than 80% of area median. First-time home buyers only."

Unlocking the Benefits of HomeReady

Key Loan Details

  • First Time Homebuyer Requirement: Only for first time home buyers. (Home Possible by Freddie Mac does not have this requirement)

  • Required Education: Fannie Mae requires the completion of first time home buyer education. (HomePossible by Freddie Mac does not require education if at least one borrower has owned a home in the past)

  • Pricing Adjustment Waivers: Fannie Mae waives many pricing adjustments for first time home buyers, that means you get a better rate if you qualify.

  • Funding Sources: Down payments and closing costs can be covered through gifts, grants, or Community Seconds®, with no minimum personal contribution required.

  • Rental Income: Includes potential rental income from a boarder or an accessory dwelling unit (ADU) in qualifying income calculations, broadening eligibility.

  • Mortgage Insurance: Reduced coverage requirement for loans above 90% LTV.

References