HomeReady Low Down Payment Mortgage
Our HomeReady® mortgage can reduce the required down payment for creditworthy homebuyers with nontraditional income sources or other unique financial challenges.
A lower down payment and more flexibility for your home loan.
Our HomeReady® mortgage requires a down payment as low as 3% for borrowers with lower or nontraditional incomes. As a next step, talk to a lender to understand HomeReady is the right option for your situation.
Who is HomeReady for?
HomeReady is designed for homebuyers who are looking for a lower down payment option – whether they’re paying off student loans, relying on nontraditional income sources, or facing other unique financial situations. Since its launch, HomeReady has assisted nearly 1 million families in finding affordable housing, with 88,000 families benefiting in 2024 alone.
Benefits of HomeReady
- Down payments as low as 3%.
- Flexibility to fund down payment and closing costs from multiple sources, including gifts, eligible grants, and Community Seconds®.
- Accepts additional income sources like rental payments or boarder income.
- Opportunity to cancel mortgage insurance once your home equity reaches 20%, unlike FHA loans.
- No geographic restrictions.
Borrower requirements
- Minimum credit score of 620.
- No more than 50% debt-to-income ratio.
- Must be buying home as principal residence.
- Income must be less than 80% of the median income in your area – your lender can help you understand if you meet this requirement.
Join the over 1.1 million* Americans who purchased their home with as low as 3% down
*Data through April 2025
HomeReady provides an opportunity to contribute your own labor, with help from volunteers, to increase your equity in a home.
By helping with the construction or rehab of a property through work with a nonprofit like Habitat for Humanity, your “sweat equity” is another way to invest in your future home. In partnership with nonprofit housing providers, your work can count as a credit toward your down payment.
Talk to your lender about how a HomeReady mortgage could work for you.
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