Buying a home in today’s market can feel like an uphill battle, especially if you're concerned about saving for a down payment or qualifying for a mortgage. The good news? Fannie Mae’s HomeReady® program is designed to make homeownership more accessible, particularly for first-time homebuyers and those with moderate incomes.
If you're looking for a low down payment mortgage with flexible qualifying guidelines, HomeReady® might be the perfect solution for you! Let’s break down why this program could be the key to unlocking your homeownership dreams.
What is the HomeReady® Mortgage?
Fannie Mae’s HomeReady® mortgage is a low down payment loan that allows borrowers to qualify with as little as 3% down. It’s geared toward first-time homebuyers and moderate-income borrowers who might not have a large down payment saved up but still have stable income and good credit.
Unlike some other low down payment options, HomeReady® offers competitive interest rates and reduced mortgage insurance costs, making it one of the most affordable loan options available.
Why HomeReady® Might Be Right for You
✅ Low Down Payment – Just 3% down gets you into a home, making it easier to buy sooner rather than later.
✅ Flexible Income Sources – You can use co-borrower income, rental income, and even income from a roommate to qualify!
✅ Lower Mortgage Insurance (MI) – Unlike FHA loans, HomeReady® has reduced private mortgage insurance (PMI) costs that can be canceled once you reach 20% equity.
✅ Down Payment Assistance Friendly – You can combine HomeReady® with programs like Florida Hometown Heroes for even lower out-of-pocket costs!
✅ Competitive Interest Rates – Because this is a Fannie Mae-backed program, the rates tend to be lower than many other low down payment loan options.
✅ First-Time & Repeat Buyers Welcome – While great for first-time homebuyers, you don’t have to be a first-time buyer to qualify!
Who Qualifies for HomeReady®?
To be eligible for a HomeReady® mortgage, you must:
✔ Have a credit score of 620 or higher (higher scores improve your rate).✔ Make equal to or less than 80% of your area’s median income (AMI) – We can check this for you!✔ Use the home as your primary residence (no investment properties).✔ Complete a simple homeownership education course (for first-time buyers).
💡 Bonus: If you’re buying with a co-borrower (like a parent or partner), only one of you needs to live in the home!
HomeReady® vs. FHA: Which One is Better?
Many homebuyers assume an FHA loan is the only option if they have a small down payment, but HomeReady® can actually save you money in the long run.
Feature | HomeReady® | FHA Loan |
Minimum Down Payment | 3% | 3.5% |
Mortgage Insurance | Lower PMI, can be removed | Higher MIP, lasts for life of loan (unless 10% down) |
Income Limits | 80% of AMI | No income limits |
Interest Rates | Typically lower | Slightly higher |
Down Payment Assistance | Allowed | Allowed |
For borrowers who qualify, HomeReady® is often the better choice over FHA because of lower mortgage insurance costs and the ability to remove PMI, which can save you hundreds of dollars per month in the future.
How to Get Started
At Manzano Mortgage Co., we specialize in helping homebuyers navigate mortgage options and find the best loan for their financial situation. If you’re ready to see if you qualify for HomeReady®, here’s how to get started:
1️⃣ Get Pre-Qualified – We’ll check your income, credit, and eligibility in minutes.2️⃣ Explore Down Payment Assistance – If you qualify for Florida’s Hometown Heroes program, we can combine it with HomeReady® to lower your costs even more.3️⃣ Find Your Dream Home – Once you're pre-approved, you can shop for a home with confidence!
Let’s Make Homeownership Happen!
If you’ve been waiting for the right mortgage to make homeownership a reality, the wait is over! HomeReady® can help you buy with a low down payment, lower monthly costs, and more flexible qualifying options.
📩 Ready to get started? Contact Manzano Mortgage Co. today at 📧 Chris@ManzanoMTG.com or visit ManzanoMTG.com to apply!
💬 Have questions? We’re happy to walk you through the process and help you see if HomeReady® is right for you.
Disclaimer
The information provided in this blog is for general informational purposes only and does not constitute legal, financial, or professional advice. While every effort is made to ensure the content is accurate and up-to-date, laws and regulations may vary, and individual circumstances differ. For personalized advice, please consult a licensed professional.
Manzano Mortgage Co. is not a law firm, and this content should not be considered a substitute for legal advice.
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