3% down with income-based pricing discounts for low-to-moderate income buyers — more flexible than Conventional 97 for LMI borrowers.
Get started at Fannie Mae (FNMA) — available through any Fannie Mae-approved lender → Pre-qualify (where available) with a soft credit pull — no score impact.
ClearValue Rating: 4.2 / 5 — our editorial assessment (how we rate)
Editorial confidence (30%), cost (25%), value (25%), accessibility (20%) — scored consistently across every product, independent of compensation.
Low-to-moderate income buyers (≤80% AMI) who want competitive pricing on a conventional loan with flexible income sourcing.
Fannie Mae HomeReady — 3% down with income-based pricing discounts for low-to-moderate income buyers — more flexible than Conventional 97 for LMI borrowers. Best for: Low-to-moderate income buyers (≤80% AMI) who want competitive pricing on a conventional loan with flexible income sourcing.. Compare it against alternatives before applying; the right fit depends on your situation, credit, and goals.
HomeReady is designed for low-to-moderate income buyers with household income at or below 80% of Area Median Income (AMI) who want a conventional loan with competitive, income-based pricing. It is also a fit for repeat buyers, since there is no first-time-buyer requirement as long as you meet the income limit.
HomeReady requires a minimum 3% down payment. Notably, boarder income, rental income, and non-borrower household income can be counted toward qualification, which can help borrowers meet debt-to-income requirements.
The minimum FICO score is 620 — the same floor as Conventional 97 — with better pricing typically available at 680 and above. Exact terms depend on your full credit profile, so confirm details with a Fannie Mae-approved lender.
Household income must be at or below 80% of Area Median Income (AMI), and that limit applies to all borrowers on the loan. The AMI threshold varies by county, and there is no income limit in designated low-income census tracts. Buyers above 80% AMI generally use Conventional 97 instead.
Both require 3% down and a 620 minimum FICO, but HomeReady offers reduced PMI premiums for qualifying low-to-moderate income borrowers, which can lower total cost. The tradeoff is HomeReady's ≤80% AMI income cap, which Conventional 97 does not have.
HomeReady is a Fannie Mae mortgage product available through any Fannie Mae-approved lender, not directly from Fannie Mae. ClearValue Lending is a neutral information platform — you can review program details at Fannie Mae's HomeReady page and then apply through an approved lender. First-time buyers are required to complete a homeownership education course (Framework).
How we rate
Every pick gets a 1–5 ClearValue Rating computed from four weighted factors: Editorial confidence (30%), Cost (25%), Value (25%), and Accessibility (20%).
Scored consistently across every product and independent of any compensation. Full methodology →
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