HomeReady (Fannie Mae) and Home Possible (Freddie Mac) are conventional loan programs built for buyers with modest incomes who are ready to own but short on down payment. Both allow as little as 3% down, accept flexible sources for that down payment, and offer reduced mortgage insurance costs compared with standard conventional loans.
Good fit if: your household income is at or below the program limit for your area (generally tied to area median income — I’ll check your specific census tract, because in many areas the limit is generous or waived), and you’re buying a primary residence. First-time buyers are welcome but not required for Home Possible, and first-time buyers complete a free/affordable homebuyer education course. Income from a household member who isn’t on the loan, or rental income from a basement unit, can sometimes help you qualify.
These programs deserve a fair comparison against FHA: for buyers with decent credit, 3% down with cancelable mortgage insurance often beats FHA’s 3.5% down with permanent insurance. I’ll run both on your numbers and let the spreadsheet decide. HomeReady® is a registered trademark of Fannie Mae; Home Possible® is a registered trademark of Freddie Mac.
True Home Lending is operated by Navaneet Dutt, Mortgage Loan Originator, NMLS #2262708, with Loan Factory, NMLS #320841. All loans are subject to credit and property approval. Program availability, rates, terms, and conditions are subject to change without notice and may vary by state, lender, and borrower profile. Not all applicants will qualify. This content is for education only and is not a quote, a loan approval, or a commitment to lend. Equal Housing Opportunity.