Fannie Mae HomeReady Mortgage
A Fannie Mae HomeReady Mortgage from NASB can help creditworthy low- and moderate-income (LMI) borrowers get their dream home with a low down payment.
Owning a home is easier with a HomeReady loan from NASB
A Fannie Mae HomeReady loan is ideal for credit-worthy low- and moderate-income borrowers wanting to get a home loan. Featuring a low down payment and allowing co-borrower flexibility, it's easier than ever for qualifying borrowers to get into a home of their own.
HomeReady Loan Advantages
- Competitive rates and terms
- Down payments as low as 3%
- Allows for flexible sources of down payment and closing costs (gifts, grants, community seconds); no minimum personal funds required
- Boarder income and rental income from an accessory unit allowable
- Reduced mortgage insurance coverage for loans above 90% LTV. Mortgage insurance is cancellable when certain conditions are met
HomeReady Loan Requirements
- For purchase and limited cash-out refinances
- Borrower income is less than or equal to 80% of the area median income
- Have a credit score greater than or equal to 620, and those with scores greater than or equal to 680 may get better pricing
- Primary residences only; non-occupant co-borrowers allowed
- Max LTV is 97% for purchases or limited cash-out refinances owned or securitized by Fannie Mae
- Home ownership counseling course required for any purchase transactions with first-time home buyers
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Minimum loan amount of $175,000 required to apply*
Fannie Mae HomeReady Mortgage FAQs
What is a HomeReady loan?
A HomeReady Mortgage loan is a program financed through the Federal National Mortgage Association (Fannie Mae) that allows borrowers with low to moderate income to buy or refinance a home without needing a large down payment.
Do I have to be a first-time home buyer to qualify for a HomeReady loan?
No. As long as your income does not exceed 80% of area median income (AMI) you qualify for a HomeReady loan.
How do I qualify for a HomeReady mortgage?
To qualify for a HomeReady mortgage:
- Borrower income is less than or equal to 80% of the area median income
- Have a credit score greater than or equal to 620, and those with scores greater than or equal to 680 may get better pricing
- Used for primary residences only; non-occupant co-borrowers allowed
- Borrower max LTV is 97% for purchases or limited cash-out refinances owned or securitized by Fannie Mae
- A home ownership counseling course is required for any purchase transactions with first-time home buyers
What are the income limits for a HomeReady loan?
You must not earn more than 80% of your census tract’s median income to be eligible for a HomeReady loan. Check your area’s median income here.
Does a HomeReady loan require homebuyer education?
If you are a first-time home buyer, all occupying HomeReady borrowers must complete a homeownership education course offered by a qualified provide.
Can I refinance with a HomeReady loan?
Yes! You can use the HomeReady program to refinance a home. Eligibility guidelines include:
- Down payment options as low as 3% for first-time and repeat homebuyers
- All borrowers do not have to reside in the property, allowing for co-borrower flexibility
- Can be used only for rate and term refinances, not cash-out refinances
What residence types are eligible for HomeReady mortgages?
Residencies eligible for a HomeReady mortgage houses with 1-4 dwelling units, condos, manufactured housing, and new construction.
What is the minimum required loan amount?
A minimum loan amount of $175,000 is required to apply. Exceptions include mortgage products for properties located within the Greater Kansas City metro and surrounding areas. Contact a NASB Loan Officer for details on the excluded areas and/or zip codes.
What Our Customers Say
Michael S., January 18, 2022
★★★★★ (5)
"I was a first time homebuyer. I didn’t know much about the process, but my loan officer was extremely helpful. He explained the process and informed me of various options. He was knowledgeable, professional, and honest. I felt lucky to have connected with him and I would eagerly recommend him and NASB to anyone looking for a mortgage."
"I was a first time homebuyer. I didn’t know much about the process, but my loan officer was extremely helpful. He explained the process and informed me of various options. He was knowledgeable, professional, and honest. I felt lucky to have connected with him and I would eagerly recommend him and NASB to anyone looking for a mortgage."
