What is HomeReady?
HomeReady is Fannie Mae's affordable lending program. It allows 3% down, accepts borrowers at or below area median income (AMI), offers reduced PMI factors, and includes flexible income features (boarder income, non-occupant co-borrower, gift funds). Borrowers must complete a homebuyer education course.
Plain-English explanation
HomeReady is designed for low-to-moderate-income borrowers buying primary residences. Key features: 3% minimum down payment, reduced PMI tiers, income capped at 80% of AMI for the property's location, allows boarder/rental income from accessory units, allows non-occupant co-borrower income, allows gift funds for full down payment. A homebuyer education course (Fannie's Framework or similar) is required for at least one borrower. Subject to Fannie Mae program rules.
What can change the answer?
Gift source, seller credit limits, DPA program rules, source-of-funds documentation, and program eligibility (HomeReady, Home Possible) can change the answer.
Want the real answer for your conventional file?
Conventional guidelines are the rule. Your credit, income, DTI, PMI, LLPAs, and Florida payment math are what decide the actual answer.
More conventional questions on Down Payment
Educational only. Conventional loan guidelines, lender overlays, rates, fees, PMI, LLPAs, and underwriting requirements can change. Final eligibility depends on full underwriting review.