FANNIE MAE HOMEREADY®
What is a HomeReady loan?
Several loan programs can help home buyers with a lower income and low down payment. One such program is the Fannie Mae HomeReady mortgage.
You could pay as little as 3% down with a HomeReady loan. That’s $12,000 down on a $400,000 home. This is even less than the FHA’s 3.5% down payment requirement.
Plus, you could use gifts, grants, or a down payment loan to help cover your upfront costs. And co-borrowers living in the home, or outside of it, can be on your application. This makes HomeReady one of the easiest mortgage programs to qualify for.
Basic requirements for HomeReady include:
You cannot earn more than 80% of your Census tract’s median income
You need a FICO score of at least 620 in most cases
The home must be your primary residence
You should have a debt-to-income ratio (DTI) that’s no higher than 50%. This is more lenient than most other mortgage programs
You must agree to complete a 4-6 hour online homeownership education course