HomeReady Loans

HomeReady Flexible Home Loans

Want to buy a home now instead of waiting to save a big down payment? The Fannie Mae HomeReady mortgage might be a good choice for you:

  • Do you want to put down as little as 3%?
  • Are you getting down payment help from, family, or a down payment assistance program?
  • Do you have a history of a roommate paying rent and will they continue to live with you and pay rent?

If the answer is “Yes” then a HomeReady mortgage from Fannie Mae may be right for you.

Planet Home Lending is on the Fannie Mae approved lenders HomeReady list. Our mortgage professionals know the HomeReady program guidelines. We walk you through your choices and deliver concierge service.

Call 888-966-9044 or sign up for a consultation now!
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What is a Fannie Mae HomeReady loan?

HomeReady mortgage loans are for homebuyers with modest savings and income who hold tight the American Dream of homeownership. They’re an affordable, flexible way to buy a home or to refinance at a competitive interest rate.

They come with some great advantages:

  • Put as little as 3% down for your down payment.
  • Use boarder income from household members to qualify, even if they're not family.
  • Get rid of your monthly mortgage insurance payment after you build home equity.

Find out if HomeReady is right for you.

Call 888-966-9044 or sign up for a consultation now!

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How Do HomeReady Home Purchase Loans Work?

Step 1: Find out if an FNMA HomeReady loan is right for you.

Tells us about your homebuying dream. We’ll help you figure out if you’d benefit from HomeReady's low down payment and flexibility to use boarder income and co-signers. Then, we’ll show you today’s HomeReady mortgage rates, which are competitive with other home loan programs.

If it turns out Fannie Mae HomeReady isn’t right for you, no worries! We’ll show you other mortgage products.

Step 2: Gain Pre-Approval Power

HomeReady loans have some awesome benefits, but you have to meet some special requirements to get one. There’s a minimum credit score. There are Fannie Mae HomeReady program income limits, so we'll check those for you.

You’ll also take a Fannie Mae first-time homebuyer program class that teaches you what you need to know to be a successful homeowner.

Once you meet the HomeReady guidelines, we’ll pre-approve your loan application. Pre-approval shows home sellers you can afford to buy their property, so it can help you when shopping for a home.

Step 3: Find Your Perfect Home

Your pre-approval letter will let you know how much Planet Home Lending can loan you. That means it’s time to start shopping for your new home!

Our HomeReady Loan Professional stays with you throughout the journey, on call to answer your questions and speed the process.

Call 888-966-9044 or sign up to start now!

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HomeReady Frequently Asked Questions

What’s the minimum down payment?

HomeReady borrowers have to put at least 3% down for a single-family home, 15% down for a two-unit property, or 25% down for a three- to four-unit property.

Where can I get money for my HomeReady down payment?

You can use gifts or cash from others. There are state, local, and even national down payment assistance funds that offer homebuyers grants or loans for down payments. None of the down payment has to come from your personal funds.

What homes can I buy with a HomeReady loan?

You can use a Fannie Mae HomeReady loan to buy a single-family home, a condo, a townhome, or a manufactured home. If you buy a manufactured home, you’ll have to put 5% down. You can also buy a two- to four-unit property as long as you live in one of the units, but you can’t buy an investment property or second home.

Do I have to be a first-time homebuyer to get a Fannie Mae HomeReady mortgage?

No, you do not have to be a first-time homebuyer to get a Fannie Mae HomeReady mortgage. You can be a previous homeowner and still be eligible for HomeReady, but you can’t currently own a home.

Find out if HomeReady is right for you.

Call 888-966-9044 or sign up for a consultation now!
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Is it hard to get a HomeReady mortgage?

The HomeReady mortgage program has rules about your credit score, income, and how much of your income it takes to pay your other bills, like your car loan. You can't be a current homeowner, but it’s OK if you’ve owned a home in the past. You do have to complete a homeowner education course and make a minimum 3% down payment, but you can get the down payment from a down payment assistance program, or family.

There’s a lot of flexibility on the income you use to get this loan, which makes this a great option for people with limited incomes. Fannie Mae HomeReady mortgage insurance is required if you put less than 20% down, but once you build up 20% equity, you may be able to cancel it.

Can I refinance with Home Ready?

Yes, you can refinance an existing mortgage, and the refinance includes a limited cash-out option.

Can home sellers pay my closing costs?

Yes, the home seller can provide both down payment and closing costs of up to 6% of your loan amount.

What are the HomeReady income limits?

The HomeReady income limits let you can earn 80 percent of the area median income (AMI). In some special areas, there’s no income limit.

You can use the Income Eligibility Lookup tool on Fannie Mae’s website to see the limits where you want to buy a home, or your loan professional can check for you.

The limits can be surprisingly high. For example, if you wanted to buy in the same neighborhood as the White House in Washington, D.C., you could earn up to $95,920 using the HomeReady income limits for 2019.

Find out if HomeReady is right for you.

Call 888-966-9044 or sign up for a consultation now!
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What credit score do I need to get a HomeReady loan?

The minimum credit score is usually 620 or higher.

Planet Home Lending's HomeReady loan product from Fannie Mae may be right for you. Call 888-966-9044 or sign up for a consultation now!

How does HomeReady compare to FHA loans?

HomeReady loans have several advantages over FHA loans. With HomeReady, you can cancel your mortgage insurance premium once you build 20% equity in your home. You may have lower mortgage insurance costs with a HomeReady loan.

With FHA, you pay the mortgage insurance premium when you get your loan and every month. You cannot cancel it.

Is HomeReady a good home loan for house hacking?

Yes, because if you have a roommate who pays rent, you can use that income to help you get a HomeReady mortgage.

Find out if HomeReady is right for you.

Call 888-966-9044 or sign up for a consultation now!
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