Home Ready and Home Possible

Fannie Mae HomeReady and Freddie Mac Home Possible loan programs may be well suited for low to moderate income borrowers looking to purchase their first home, although being a first-time buyer is not a requirement. The programs allow purchasing a home with as little as 3% down payment on a single family and 5% down on a 2-4 family homes and can be more friendly to less than perfect credit scores.

Total qualifying income cannot exceed 80% of subject property Area Median Income on these programs. If all borrowers on the loan are first-time buyers, homebuyer education is required.

Use Fannie Mae HomeReady or Freddie Mac HomePossible lookup tools to check income limits based on the property address.