HomeReady®: Unlocking Affordable Homeownership for Low- to Moderate-Income Buyers

Navigating today's housing market can be challenging, especially for low- to moderate-income buyers. The HomeReady® Mortgage Program is here to break down these barriers and make homeownership more accessible. Tailored to meet your financial needs, HomeReady® offers a variety of features designed to ease your path to owning a home.

How HomeReady® Can Help You Achieve Homeownership

HomeReady® is built with flexibility and inclusivity in mind, providing solutions that traditional mortgage programs often overlook. Here’s how this program can help you secure the home you desire.

Key Features of the HomeReady® Mortgage Program

Low Down Payments:With down payments as low as 3%, HomeReady® makes it easier to get into your new home without a large upfront cost.

Flexible Funding Sources:You can use gifts, grants, and Community Seconds® to cover your down payment and closing costs, offering you more financial flexibility.

Inclusive Income Requirements:If your income is up to 80% of the area median income (AMI), you’re eligible. Special considerations are also available for properties in low-income census tracts, broadening your opportunities.

Co-Borrower Flexibility:Parents or other family members can co-sign without having to live in the home, helping you meet income and credit qualifications more easily.

Reduced Mortgage Insurance:HomeReady® provides lower mortgage insurance rates compared to other programs. Once you reach 20% equity, you can cancel the insurance, reducing your long-term costs.

Homeownership Education:An online education course will prepare you for the responsibilities of homeownership and financial management, ensuring you're well-equipped for the journey ahead.

Innovative Underwriting:Additional income sources, such as boarder income and rental income from an accessory dwelling unit (ADU), are considered, making it easier for you to qualify.

How to Qualify for HomeReady®

Eligibility Requirements:

• Income: Must not exceed 80% of the area median income (AMI).

• Credit Score: Minimum qualifying credit score is 620.

• Property Type: Eligible properties include 1-4 unit homes, condos, PUDs, and manufactured homes.

Income Flexibility:Non-borrower household income is considered, improving your debt-to-income ratios.

Down Payment Assistance:You can use family gifts and grants to cover your down payment and closing costs.

Homeownership Education:Complete an online course to gain essential knowledge for successful homeownership.

Why Choose HomeReady®?

HomeReady® offers a more inclusive and flexible approach to homeownership, removing traditional barriers like high down payments and rigid income requirements. This program opens the door to homeownership for a diverse range of borrowers, making it a practical and supportive mortgage solution.