HomeReady Income Limits Overview
HomeReady is Fannie Mae's affordable mortgage program, available to low- to moderate-income households nationwide. In order to be eligible, home buyers and refinancing households must earn an income no more than 80% of the home's Area Median Income (AMI).
📊 Key Statistic
What Counts as Income for HomeReady
HomeReady is a Fannie Mae product, which means it's a conventional mortgage loan and follows conventional mortgage standards. This means that some of the income you earn counts toward HomeReady eligibility, and some does not.
HomeReady only considers your qualifying income as part of your application.
Qualifying income includes the following:
- Base wages or salary
- Overtime, bonuses, and commissions
- Self-employment income
- Rental or boarder income
- Certain non-taxable income, such as Social Security or disability payments
The following income is non-qualifying and excluded from your application:
- Income from household members who are not on the loan application
- Cash gifts that are not documented or verified
- Seasonal or short-term contracts
- One-time and irregular payments
Lower monthly costs are another way HomeReady keeps payments affordable — see our HomeReady PMI Guide for details on how reduced mortgage insurance coverage can lower your payments.
Reference Guide: HomeReady Income Eligibility
| Income Type | Eligible? | Example |
|---|---|---|
| Base wages or salary | Yes | Full-time job income |
| Overtime, bonuses, commissions | Yes | Yearly bonus, sales commission |
| Self-employment income | Yes | Freelance or business owner earnings |
| Rental or boarder income | Yes | Rent from a roommate (if documented) |
| Certain non-taxable income | Yes | Social Security, disability payments |
| Income from non-borrower household | No | Roommate’s income not on application |
| Undocumented cash gifts | No | Gift money without paperwork |
| Seasonal/short-term contracts | No | Summer job, temp work |
| One-time payments | No | Legal settlement, one-time bonus |
For more detail on verifying income, see our HomeReady Loan Requirements Guide.
How HomeReady 80% AMI Income Limits Works
There are 392 Metropolitan Statistical Areas (MSAs) in the United States, each with its own median household income. To be HomeReady-eligible, your household income may not exceed 80% of that median figure.
For example, if you’re buying a home in Milwaukee, Wisconsin where the 2023 area median income was $72,316, . your HomeReady income limit would have been 80% of that amount, or $57,852.
But not every U.S. home is located in an MSA. Some homes are located in micropolitan areas or rural counties.
So, in non-MSA locations, Area Median Income (AMI) gets calculated at the county level, or in some cases, against the state’s non-metropolitan median. Wayne County, Illinois, is an example of a county not in an MSA.
The important part is that every home in the country — whether its urban, suburban, or rural — has an AMI figure against which to test HomeReady eligibility.
Here are 10 U.S. metropolitan areas, their most recent AMI data, and where the Fannie Mae HomeReady AMI limits are set in each for 2025 .
| Metropolitan Statistical Area | 100% AMI | 80% AMI (HomeReady Limit) |
|---|---|---|
| New York–Newark–Jersey City, NY-NJ MSA | $91,448 | $73,158 |
| Miami–Fort Lauderdale–West Palm Beach, FL MSA | $84,302 | $67,442 |
| Boston–Cambridge–Newton, MA-NH MSA | $100,880 | $80,704 |
| Minneapolis–St. Paul–Bloomington, MN-WI MSA | $79,654 | $63,723 |
| Charlotte–Concord–Gastonia, NC-SC MSA | $69,588 | $55,670 |
| Portland–Vancouver–Hillsboro, OR-WA MSA | $78,085 | $62,468 |
| Kansas City, MO-KS MSA | $69,865 | $55,892 |
| San Jose–Sunnyvale–Santa Clara, CA MSA | $148,036 | $118,429 |
| Raleigh–Cary, NC MSA | $75,129 | $60,103 |
| Salt Lake City–Murray, UT MSA | $70,395 | $56,316 |
Use our Income Limits calculator to see if you earn too much to qualify based on where you live.
Income Limits and Co-Borrowers
HomeReady’s 80% area median income (AMI) limit applies to all HomeReady mortgage applications, whether purchase or refinance. There are no exceptions.
This rule extends to all borrowers listed on the application — even if only one person’s income is used to qualify. However, there are situations when lenders will consider the income of other household members to strengthen the main mortgage applicants's profile.
Here's how that works:
HomeReady guidelines let lenders consider income from people who live in the home but are not on the mortgage. This may include a parent, an adult child, or a roommate. Lenders canuse this extra income as a compensating factor during underwriting. It may help if the main borrower has a limited credit history or a higher debt-to-income ratio.
This non-borrower income does not count toward the 80% AMI limit because it is not used to qualify for the loan. Instead, lenders may document this income to show that the household has extra support for making payments. For example, a parent who lives in the home and pays $800 per month toward expenses, or an adult child who pays rent to the borrower, may help the application.
Non-Borrower Household Income and HomeReady
| Who? | Counts? | Lender Use | Example |
|---|---|---|---|
| Overtime pay | Yes | Qualifying income | Extra shifts at work |
| Rental unit | Yes | Qualifying income | Rent from basement tenant |
| Roommate | No | Compensating factor | Pays share of bills |
| Parent in home | No | Compensating factor | Pays monthly fair share |
| Alimony | Yes | Qualifying income | Court-ordered support |
| Spouse not on loan | No | Compensating factor | Pays part of mortgage |
| Seasonal bonus | Yes | Qualifying income | Year-end work bonus |
HomeReady applicants aren't required to document any non-borrower income they may receive but, when included, documentation may help strengthen an application without counting against the 80% AMI income limit.
How to Check Your AMI
Check AMI Income Limits for HomeReady®
Enter any U.S. property address to see its AMI Income limit.
Based on Fannie Mae area limits; amounts may change. HomeReady® is a registered trademark of Fannie Mae.
To find out if your income is within HomeReady’s 80% AMI limit, use our HomeReady income eligibility lookup tool.
Here’s how:
- Enter the property address or select the state, county, and city.
- Review the results for the property’s Area Median Income and the 80% AMI limit for HomeReady.
You can compare your qualifying income to the limit shown. If your income is at or below the limit, you may meet this part of HomeReady’s eligibility rules. For the other requirements, see our HomeReady Loan Requirements Guide.
Key Takeaway
HomeReady loans are available to borrowers whose qualifying income is 80% or less of their local Area Median Income. The income limt rule applies to purchases and refinances, and only qualifying income counts toward the limit.
Frequently Asked Questions About HomeReady Income Limits
Find answers to common questions about the 80% AMI income rules for the HomeReady mortgage program.
What is the HomeReady income limit?
80% of the Area Median Income (AMI) for the property's location.
Does the income limit apply to refinances?
Yes. The limit applies to both purchase and refinance loans.
Is it based on household income or borrower income?
Only income used to qualify for the loan is counted toward the limit.
How can I check my area's AMI?
Use Fannie Mae's online HomeReady lookup tool or see your lender.
What happens if my income is over the limit?
You will not be eligible for HomeReady, but other conventional loan options may be available.
