Fannie Mae · Affordable Conventional

Fannie Mae HomeReady

Buy your primary home with as little as 3% down, flexible income sources, and cancellable PMI — built for income-eligible buyers who want conventional financing that actually fits.

3% down conventional

Cancellable PMI

VLIP grant eligible

Joyful couple proudly holding keys to their new home

Why buyers choose it

Conventional financing built for real households

HomeReady lowers the cash barrier of a traditional conventional loan without locking you into FHA mortgage insurance for the life of the loan. Ryan and Steve underwrite through Luminate Bank so your AMI, income mix, and VLIP eligibility are checked before you write an offer.

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At a glance

HomeReady requirements

Guidelines update with Fannie Mae selling guides. The snapshot below is educational — your pre-approval uses current overlays for credit, AMI, and property type.

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Preliminary result

{[ { label: 'Primary residence', ok: primaryResidence === true, val: 'Yes' }, , { label: '80% AMI income limit', ok: incomeOk, val: formatMoney(incomeLimit80) }, { label: 'Your household income', ok: incomeOk, val: formatMoney(householdIncome) }, { label: '% of AMI limit', ok: incomeOk, val: `${amiPct.toFixed(1)}%` }, , , ].map((row) => (

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VLIP grant screening ($2,500 credit)

{[ { label: '50% AMI limit (VLIP)', ok: vlipIncomeOk, val: formatMoney(incomeLimit50) }, { label: '% of VLIP limit', ok: vlipIncomeOk, val: `${vlipAmiPct.toFixed(1)}%` }, , , , ].map((row) => (

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•Income appears above the 80% AMI estimate — standard conventional or other programs may still work.
•Scores below 620 usually need credit strengthening before conventional approval.
•HomeReady requires at least 3% down — DPA programs like VLIP or Chenoa may help bridge the gap.
•With 3% down your LTV may exceed 95% — plan for a HUD-approved homebuyer education course before closing.

Educational screening only — AMI limits vary by county and household composition. Final HomeReady eligibility is confirmed during underwriting against current Fannie Mae selling guides.

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Will you live in the home as your primary residence?

Yes — I will occupy it as my main home No — second home or investment property

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What type of property are you buying?

Single-family home, condo, or townhome (1 unit) Duplex, triplex, or fourplex (2–4 units — I occupy one)

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Is anyone on the loan a first-time homebuyer?

Not required for HomeReady, but helps us flag VLIP grant pairing.

Yes — at least one borrower No — repeat buyer

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Where are you buying, and what is your household income?

State

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Indiana county

Area: {amiArea.label}

Household size

Estimated annual household income

HomeReady limit for your area: (80% AMI)

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What is your estimated credit score?

Below 620 620 – 659 660 – 699 700 or higher

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How much down payment can you put toward the purchase?

Less than 3% About 3% (HomeReady minimum) 5% – 9% 10% or more

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Down payment As low as 3%

Occupancy Primary residence (1–4 units)

Income limit Typically ≤ 80% of area AMI

Credit Competitive conventional guidelines

Homebuyer education Required when LTV exceeds 95%

Mortgage insurance PMI — cancellable with equity

HomeReady advantage

Income flexibility that standard conventional often misses

Many buyers qualify on paper once every income stream is counted correctly. HomeReady is designed for multi-generational households, side income, and rental potential on the same property.

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Stack more savings

Pair HomeReady with a VLIP grant

Very Low Income Purchase (VLIP) grants can add a $2,500 credit toward down payment, closing costs, pre-paids, or mortgage insurance — when household income is at or below 50% AMI and at least one borrower is a first-time buyer.

Grant amount

$2,500 toward cash to close

Income target

≤ 50% Area Median Income

Buyer status

At least one first-time homebuyer

Available through

February 28, 2027

Buy or refi + renovate

Want to renovate under HomeReady?

HomeReady HomeStyle Renovation rolls purchase or limited cash-out refinance and rehab into one conventional mortgage — still as little as 3% down on your primary residence.

Who HomeReady is built for

If your income qualifies and you are buying a home to live in, HomeReady is often the cleanest path to low-down conventional ownership — especially when FHA MIP would cost more over time.

Income-eligible first-time buyers

Ready to buy with limited cash but strong enough credit for conventional pricing.
Multi-generational households

Families who share housing costs and can document boarder or co-borrower support.
Buyers comparing FHA vs conventional

Anyone who wants cancellable PMI and may qualify for VLIP on a Fannie Mae loan.

1–4 unit owner-occupants

Purchase a duplex, triplex, or fourplex as your primary residence when guidelines allow.

Mortgage Knowledge Center