The HomeReady loan is a conventional loan offered through Fannie Mae. Borrowers can put as little as 3% down. The rate may be lower than what is otherwise available and the mortgage insurance cost is lower too.
All HomeReady loans must be approved through Fannie Mae’s automated underwriting system. Generally the maximum debt ratio is 50% but with 5% or less down most people will not be approved for more than 45% total debt ratio. Click here for definition of debt ratio.
Income limits do apply to this loan. Income limits are based on the borrowers on the loan (not household income)
Homebuyer Education
Fannie Mae does require homebuyers to complete homebuyer education prior to closing on their loan. Click here to get to an awesome free, online course called Framework. If you’re thinking of buying a home, you should check out this awesome course!