HomeReady and Home Possible are affordable conventional mortgage programs designed for low-to-moderate income borrowers. HomeReady, offered by Fannie Mae, and Home Possible, offered by Freddie Mac, both feature low down payments, flexible credit requirements, and reduced mortgage insurance costs. These programs are ideal for first-time homebuyers, those with limited financial resources, and buyers in specific geographic areas, making homeownership more accessible. Both programs allow for co-borrowers and support homes in designated areas.
The benefits of HomeReady and Home Possible loans include:
Low Down Payment: Both programs require as little as 3% down, making homeownership more affordable.
Flexible Credit Requirements: These loans offer more lenient credit score criteria, helping buyers with less-than-perfect credit.
Reduced Mortgage Insurance: Both programs feature lower mortgage insurance costs compared to traditional loans, reducing monthly payments.
Co-Borrower Flexibility: These programs allow non-occupant co-borrowers, such as family members, to help qualify for the loan.
Expanded Eligibility: Available to first-time homebuyers and those in certain underserved or low-income areas, increasing access to homeownership.
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HomeReady and Home Possible are affordable mortgage programs offered by Fannie Mae and Freddie Mac, respectively, each with specific eligibility criteria:
Income Limits: Borrower income must not exceed 80% of the area median income (AMI) for the property's location.
Down Payment: Requires a minimum down payment of 3%.
Credit Score: A minimum credit score of 620 is required but rates will be much better at 680+. See
Occupancy: At least one borrower must occupy the property as their primary residence.
Homeownership Education: If all occupying borrowers are first-time homebuyers, at least one must complete a homeownership education course, such as Fannie Mae HomeView®.
Income Limits: Qualifying income is limited to 80% of AMI, effective Feb 03, 2025
Down Payment: Requires a minimum down payment of 3%.
Credit Score: A minimum credit score of 620 is required but rates will be much better in the 680+ range.
Occupancy: At least one borrower must occupy the property as their primary residence.
Co-Borrowers: Non-occupant co-borrowers are permitted on one-unit properties, provided at least one borrower occupies the property.
Both programs aim to make homeownership more accessible to low-to-moderate income borrowers by offering flexible requirements and affordable terms.
Looking to buy a home with a low down payment? HomeReady and Home Possible loans offer the perfect solution! With just 3% down, these affordable mortgage options are designed for low-to-moderate income buyers. Benefit from flexible credit requirements (as low as 620 for HomeReady and 660 for Home Possible), lower mortgage insurance costs, and the ability to include non-occupant co-borrowers. Plus, first-time homebuyers can access helpful homeownership education programs. Make your dream of homeownership a reality with HomeReady and Home Possible!
Answer a few questions to get a personalized offer.