Fannie Mae HomeReady
Fannie Mae's affordable 3%-down loan for low-to-moderate-income buyers. It carries cheaper mortgage insurance than a standard conventional loan and counts flexible sources of income.
- Down payment
- 3% down.
- Credit context
- Usually needs a score around 620. Mortgage insurance is required under 20% down but is reduced versus a standard conventional loan and cancels with equity.
- Income rules
- Your income generally must be at or below 80% of the area median. Income from household members can sometimes help you qualify.
Individual lenders set the interest rate, fees, mortgage-insurance treatment, and final approval requirements. Compare written Loan Estimates before choosing.
How repayment works
Your monthly housing payment usually includes principal and interest, and may also include property taxes, homeowners insurance, mortgage insurance, and association fees. Your lender’s written Loan Estimate and Closing Disclosure control the actual costs and terms.
A lower advertised down payment does not necessarily mean the lowest monthly payment or lowest total cost.
Who it may fit
- First-time buyers who want a clearer path
- Households balancing two credit profiles
These are situations worth exploring, not a qualification decision.
What could rule it out
- Household income may not exceed 80% of area median income for the property location.