HomeReady® Purchase Loan
Most PopularBest For: First Time Homebuyers, Low Down Payments
Competitive pricing, affordable mortgage insurance and flexible qualification for buying a home with limited income and funds.
Program Description
With the HomeReady® Purchase Program from Fannie Mae, individuals with limited income and funds can purchase a home with as little as 3% down. The ideal borrower for this program is a first-time or repeat homebuyer with low income and limited cash for down payment. This program also features competitive pricing, affordable mortgage insurance, and flexible funding. Down payment money can come from sources such as gifts, grants and Community Seconds®.
Tags
Do you match this loan?
Our loanSMART system will tell you if this loan program is a good fit your scenario.
HomeReady® Purchase Loan
Min. Credit Score
620
Min. Down Payment
3%
Max Loan Amount
$726,200
Qualification variables shown here are for 1-Unit Primary Residences, and loan amount ranges vary based on US County. Register Now to see if this loan program is a good fit for you, find your county limits, and find more options for purchasing a home.
Pros & Cons
- Unlike Home Possible®, there is no first-time homebuyer requirement
- Pricing better than or equal to standard loan pricing
- Down payment can come from gifts, grants and Community Seconds®
- Credit scores as low as 620
- Non-occupant co-borrowers allowed
- Income limits disqualify many potential borrowers from qualifying
- Follows conventional loan limits, so borrowers are limited in how much they can borrow (varies by US County)
Program Availability
HomeReady® Purchase Loans are available in all 50 states, Washington D.C., Puerto Rico, and the U.S. Virgin Islands.
Talk to an Expert
An RMM PROLender can help you see if this or a different loan program is the right fit for your unique situation. Get Started.
“I'll let you in on a little secret... HomeReady® is a great program, but watch out for the income limits in your area! (can't be more than 80% of the AMI) Many potential borrowers may not qualify for this program due to this limitation."
Occupancy & Property Types
Qualification factors for this program can vary based on how you intend to occupy the property and what type of property you are purchasing. By registering for a free account , you can check program limits for all property and occupancy types.
Occupancy Types
Available Property Types for Primary Residence
Income & Purchase Price Limits
Your Debt-to-Income Ratio (DTI), as well as purchase price and income limits, are important factors when qualifying for a home loan program. By registering for a free account , you can find the exact program limits for this program and others in your area and for your unique scenario.
Debt-to-Income Limit
45.00%
Purchase Price Limit
No Limits
Income Limit
$16,160 - $119,600
Annual Qualifying Income
Qualification variables shown here are for 1-Unit Primary Residences, and loan limit ranges vary based on US County. Amounts may be rounded. Exact amounts can be accessed by registering for a free account.
Buying a Home?
Answer a few short questions and we'll build you a custom list of home loan program options. You're homeownership journey is in good hands.
Key Features
- Only for primary residences, no second homes or investment properties
- Lower mortgage insurance costs compared to FHA and Conventional
- As low as 3% down for purchase transactions
Additional Conditions
- Homeownership class required if all borrowers are first-time homebuyers
- Borrowers' combined income must be less than 80% of the area median income (AMI) where the property is located
- Must be an owner-occupied primary residence
Other Limitations
In some circumstances, there are specific requirements you must meet or homebuyer education courses you must attend in order to be eligible for the loan program.
No other program limitations
A Homebuyer Education Class may be required for this loan program.
Class Name: Fannie Mae's HomeView™
If all borrowers on the loan are first-time homebuyers, at least one of them will need to take a homeownership education class (Fannie Mae's HomeView™ class can satisfy this requirement).
Mortgage Insurance & Fees
Most mortgage programs require mortgage insurance when you are financing more than 80% of the purchase price or appraised value. Some programs may also have an associated funding fee, paid at the time of closing, or an annual fee. Learn all about the different fees here.
Required with less than 20% Down Payment
Type: Private Mortgage Insurance (PMI)This program requires Private Mortgage Insurance (PMI) if you are putting down less than 20% on the home you are purchasing or refinancing.
Type: No Funding Fee
This program does not have a funding fee.
Type: No Annual Fee
This program does not have an annual fee.
Estimated Closing Costs: 2.5%
These amounts are just an estimate. Your closing costs include things like loan origination fees, discount points, appraisal fees, title insurance, taxes, deed recording fees, and other charges.
Similar Loan Programs
If you think this home loan program may be a good fit for you, you may also want to check out the following programs that share many similarities with the current program.
97% LTV Conventional Purchase
Best For: First Time Homebuyers, Low Down Payments
The popular 97% LTV Purchase Program from Fannie Mae helps first time homebuyers by allowing for down payments as low as 3%.
Conventional Purchase Loan
Best For: Flexible Terms, Lowest Rates, Savvy Investors
Meet the most popular mortgage program. Flexible financing offering a wide range of attractive benefits to qualified homebuyers across the US.
Related Resources
This is for Single-Income Homebuyers
The housing market is always changing, and today single-income homebuyers are quickly becoming one of the largest demographics to take part. While getting approved for a loan may take a bit more work for single applicants than those who are coupled or have dual incomes, it is certainly an attainable goal and often one that proves to be more affordable in the long run. Let's go over some of the things you'll want to prepare for as you begin your solo home buying journey.
Read More
2023 Down Payment Assistance Guide
Unless you're related to a dragon or leprechaun with a hoard of gold stashed away somewhere, chances are you are like one of the other 87% of homebuyers who need to finance their home purchase.
Read More
First Time Homebuyer Guide
Being a first-time homebuyer has its fair share of challenges. One of your biggest obstacles will be competing against other new or seasoned buyers. While bidding wars have tapered since the previous buying season, they can still occur.
Read More
A Rundown On Closing Costs and How They Affect You
It can be tricky to sift through all the figures , so we broke down what they are, how much they cost, who's responsible and how to minimize your expenses.
Read MoreVisit our Mortgage Education Center for more resources.
* Some loan programs may not be offered by all featured lenders of ReviewMyMortgage.com and qualification guidelines may vary between them. Our team makes their best effort to keep loan program information up to date. Loan programs may change without warning. ReviewMyMortgage.com does not guarantee or offer any loan products. ReviewMyMortgage.com is strictly an educational resource hub for consumers
Mortgage Program by:
ReviewMyMortgage.com is in no way affiliated with the companies or institutions listed here.
Start Your Journey
Whether your are buying a new home, or refinancing your current home loan, let the experts at Review My Mortgage guide you on your homeownership journey.
Are you a mortgage professional?
Learn about our unique sponsorships, including RMM PROLender, that can take your production to the next level.
Get in Touch