Conventional Loans

Why choose HomeReady®mortgage?
Competitive pricing. Flexible options. Conventional ease.
HomeReady® is our affordable, low down payment mortgage product designed for creditworthy low- to moderate-income borrowers, with expanded eligibility for financing homes in low-income communities.
HomeReady benefits
Low down payment; as little as 3% down for home purchases
Flexible sources of funds with no minimum contribution from borrower’s own funds
Borrower debt-to-income ratio may exceed 45%, up to 50%, with certain HomeReady income flexibilities
Non-occupant borrowers permitted
Cancellable mortgage insurance (restrictions apply)
Reduced MI coverage requirement for loan-to-value ratios above 90% (up to 97%)

Non-Borrower Household Income Flexibility
Homeownership for the way we live today
The HomeReady® mortgage is built for today’s home buyers. Extended-household living arrangements are more common among underserved populations, including low- to moderate-income, minority, and immigrant households. These households often have lower incomes overall, compared with a broader population, and that may impact their access to credit – but many also are “extended-income households” or EIHs.
HomeReady opportunities for home buyers and lenders
HomeReady recognizes the growth of extended-income households by allowing the existence of non-borrower income to be considered a compensating factor in Desktop Underwriter® (DU®).
HomeReady permits the borrower to have a higher debt-to-income (DTI) ratio – higher than 45%, up to 50% – considering available household income to provide additional assistance with household expenses if needed. This flexibility not only provides access to mortgage credit for additional creditworthy borrowers, but also may provide a meaningful marketing opportunity for lenders.
Sample scenario: Non-borrower household income*
A single woman with children is looking to buy a larger home, so her father can move in with her. Her father has monthly income and, although he will not pay rent to his daughter, he may contribute to household expenses periodically.
The father’s income is not considered as qualifying income; therefore, there is no change to the borrower’s DTI ratio of 47%. The existence of the father’s income, however, is considered the compensating factor that allows the borrower to have a DTI ratio greater than 45%.