Information about conventional home loans, including maximum LTV of 97%, minimum FICO score of 620, and eligible property types.

Unlocking the Benefits of HomeReady

Key Loan Details

  • No First Time Homebuyer Requirement: This program is not just for first time home buyers.

  • Required Education: Fannie Mae requires the completion of home buyer education for first time home buyers.

  • 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, which means lower Private Mortgage Insurance.

References