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HomeReady rate card – (effective Dec. 4, 2017 for most states)
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HomeReady: Go!-eligible; reduced mortgage insurance coverage
Navigate to: MGIC Go!-eligible | Mortgage insurance coverage requirements | Loan Center users
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 and nonborrower household members
- 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 requirement to complete pre-purchase homebuyer education, so first-time homebuyers will be better informed about the responsibilities of owning a home
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% |
25% | 25% |
|
95% |
25 | 25 |
|
90% |
25 | 12 |
|
85% |
12 | 6 |
Use the > 20 Years columns for ARMs and manufactured homes coverage requirements.
Loan Center Users
Expedite your MI processing by entering HomeReady Special Feature Code 900 in the MGIC Program ID # field.
DU®, HomeReady® 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 Therefore, the requirements listed above may be outdated or inapplicable; do not rely on them to determine current Agency coverage requirements.
