3% down with reduced mortgage insurance for low-to-moderate income buyers.
Fannie Mae HomeReady is built for buyers earning at or below 80% of their area's median income, though in low-income census tracts there are no income limits at all. The program requires just 3% down — and that entire amount can come from gifts, grants, or employer assistance.
What separates HomeReady from a standard conventional loan is the mortgage insurance savings. PMI rates are significantly lower, which can save $100-200 per month compared to standard conventional pricing at the same LTV. The program also allows boarder income (from a roommate) and accessory dwelling unit rental income to help you qualify — features no other conventional product offers.
HomeReady works on 1-4 unit properties. Buy a duplex, live in one side, rent the other, and use both the rental income and your reduced PMI to build a cash-flowing investment from day one.
2-4 units eligible. Rental income helps you qualify.
We'll show you how to combine Fannie Mae HomeReady with other programs to maximize your free money — personalized to your ZIP code and income.