HomeReady® and HomePossible®

What is HomeReady® and HomePossible®?

HomeReady® and HomePossible® are two versions of conventional mortgage programs. Both programs aim to serve low to moderate income households and income areas.

Discounted Rates & Mortgage Insurance

Both HomeReady® and HomePossible® have discounted monthly mortgage insurance options and discounted rates. These discounts are designed for borrowers with low down payments (or little equity if refinancing).

Income Limits: 80% of Area Median Income

To use either program, the qualifying income of the borrowers on the loan can't exceed 80% of the Area Median Income (AMI) where the property sits. The limits update every June, and they're higher than many people expect. Here are the 2026 limits in a few of the metros we lend in:

• Phoenix metro (Maricopa County, AZ): $89,920
• Atlanta (Fulton County, GA): $93,680
• Miami (Miami-Dade County, FL): $78,080
• Denver (Denver County, CO): $115,200

Keep in mind that the qualifying income we use for a mortgage might be different than the income reported on your tax return (lower or higher), so it's worth checking even if you think you're over the limit. You can look up any address with the tools below, or just ask us to check for you.

**HomeReady® – Fannie Mae Income Limit – Lookup Tool** **Home Possible® – Freddie Mac Income & Property Eligibility Tool**

Eligible for Refinancing and Buying

Many people think that these programs are only for homebuyers. However, the good news is that it can be used for refinancing a property that you currently own as well. If someone has credit less than 720 or less than 20% equity and is income eligible then it may be worth looking at using this for a refinance as well.

Good Alternative to FHA

FHA can be a great loan program for some. However, both of these programs make conventional loans a more attractive option to compete with low down payment programs. Since these programs have come out, FHA's market share has dropped a bit.

HomeBuyer Class Requirements – HomeReady®

A homebuyer class is only required when all borrowers on the loan are first time homebuyers, and only one borrower needs to complete it (before closing). Fannie Mae's own HomeView® course is free and satisfies the requirement, as do classes from other qualified providers.

**HomeReady® HomeView® Course (free)**

HomeBuyer Class Requirements – HomePossible®

Very similar rules: a class is only required if nontraditional credit is used to qualify OR when all borrowers are first time homebuyers. If it's required, only one borrower is required to take the class (which is FREE).

**HomePossible® CreditSmart Course**

As always, you can contact us or apply online anytime!