HomeReady® Mortgage

The HomeReady® mortgage by Fannie Mae is an innovative lending option aimed at helping creditworthy, low-to-moderate-income borrowers gain access to an affordable mortgage. HomeReady® is designed to better meet the financial needs of today’s borrower.

HomeReady® is a unique conventional mortgage because it allows income from a non-borrowing household member to be considered as a compensating factor for the loan. In addition, documented boarder or rental income may be used to qualify. These enhancements give more flexibility to non-traditional households.

Program Details

HOMEREADY® by Fannie Mae:

  • Down payment options as low as 3%1

  • Reduced mortgage insurance with the opportunity to cancel2

  • No minimum personal funds required

  • Non-traditional credit allowed3

  • Non-occupant co-borrowers permitted and income from renters considered4

  • Various forms of income accepted for down payments and closing costs—including gifts and grants4

  • Online education courses and resources available, providing guidance for long-term homeownership success


1Financing up to 97% loan-to-value (LTV) can use any fixed-rate term (10-, 15-, 20-, 30-year). Other loan program restrictions may apply. 2A minimum of 20% established home equity required before borrower is eligible to terminate MI. Other restrictions apply. Standard MI coverage is required on HomeReady loans with LTV ratios at or below 90 percent, and 25 percent coverage is required for LTV ratios exceeding 90 percent. 3A minimum of three sources of nontraditional credit are required for HomeReady loans. If a borrower does not have a housing-related source of credit, a minimum 12 months’ of reserves may be required. Restrictions apply. 4Restrictions apply.

All loans subject to income verification, credit approval and property appraisal. For more information on loan program rates, terms, and conditions visit ussfcu.org/rates or call 800.374.2758. All loan programs, rates, terms, and conditions are subject to change at any time without notice. Restrictions apply.  Not a commitment to lend. HomeReady® loans are serviced under the requirements for all other Fannie Mae non-government conventional mortgage loans. All eligibility criteria and requirements are subject to the formal terms and conditions of the Fannie Mae Selling Guide, located at https://www.fanniemae.com