HomeReady
HomeReady: Go!-eligible; reduced mortgage insurance coverage
We provide mortgage insurance for HomeReady® mortgages.
Fannie Mae's HomeReady mortgages are an ideal option for low- to moderate-income families with minimal savings to apply toward the purchase of their first home. Offered through participating lenders, HomeReady is available to borrowers who meet the program's income limits.
The program's reduced mortgage insurance coverage requirement results in lower mortgage insurance costs for qualifying HomeReady borrowers. They also benefit from:
- Expanded income flexibilities with nonoccupant borrowers, boarder income, and accessory units
- A combined loan-to-value (CLTV) ratio of up to 105%, enabling borrowers to use Community Seconds® to cover a down payment and closing costs*
- A pre-purchase homebuyer education requirement when all borrowers on the loan are first-time homebuyers, so those new to homeownership will be better informed about their responsibilities
MGIC Go!-eligible
Loans with a DU® Approve/Eligible response are eligible for our MGIC Go! streamlined mortgage insurance program.
HomeReady mortgage insurance coverage requirements
Fannie Mae's HomeReady program’s coverage requirements differ from standard Agency requirements.**
| Base LTV |
HomeReady Coverage |
|
| > 20 Years | ≤ 20 Years | |
|
97% - 95.01% |
25% | 25% |
| 95% - 90.01% | 25% | 25% |
| 90% - 85.01% | 25% | 12% |
| 85% & Below | 12% | 6% |
Use the > 20 Years columns for ARMs and manufactured homes (not MH Advantage®***) coverage requirements.
Loan Center Users
Expedite your MI processing by entering HomeReady Special Feature Code 900 in the MGIC Program ID # field.
DU®, HomeReady®, MH Advantage® and CommunitySeconds® are Fannie Mae trademarks.
*See Fannie Mae Selling Guide for Community Seconds eligibility criteria and requirements.
**These coverage requirements are subject to change. While we try to keep this information current, we do not warrant the accuracy or completeness of these requirements. In addition, loans processed through an Agency AUS and specific Agency programs may have different coverage requirements. Therefore, the requirements listed above may be outdated or inapplicable; do not rely on them to determine current Agency coverage requirements.
***See Fannie Mae Selling Guide for MH Advantage® eligibility criteria and requirements.
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