HomeReady Loan Requirements Overview
To qualify for a HomeReady mortgage, applicants must meet all of the following criteria:
- Income limit: no more than 80% of the Area Median Income (AMI)
- Credit score: 620 minimum
- Down payment: 3% minimum
- Occupancy: Primary residences only
- Property type: 1–4 unit property
- Loan size: Within conforming mortgage loan limits
Applicants who don’t meet these requirements may need to consider other mortgage programs.
📊 Key Statistic
Borrower Requirements
Eligible HomeReady applicants must meet Fannie Mae’s credit, income, and documentation standards.
| Requirement | Rule |
|---|---|
| Income | No more than 80% of Area Median Income |
| Credit score | 620 minimum |
| Occupancy | Must live in the home as your primary residence |
| Documentation | Income, asset, and employment verification required |
| Citizenship | U.S. citizens, permanent residents, and certain non-permanent residents |
For more on HomeReady income rules, see our HomeReady Income Limits Guide.
For more on how credit scores work for HomeReady, see our HomeReady Credit Score Guide.
Property Requirements
HomeReady follows Fannie Mae’s property eligibility rules to ensure financed homes are safe, sound, and meet the program’s goal of promoting sustainable homeownership.
HomeReady Eligible properties:
- 1–4 unit primary residences
- Condominiums and co-ops
- Planned Unit Developments (PUDs)
- Certain manufactured homes
Ineligible properties:
- Second homes
- Investment properties
- Non-warrantable condos
- Commercial-use properties
HomeReady is for primary residences only so, if you buy a 2–4 unit property, you must occupy one of the units as your primary residence. The remaining units may be rented to tenants.
Loan Limits
HomeReady is a conventional mortgage program so standard conforming loan limits apply. Loan limits vary by county, property type, and number of units including eligible condos, co-ops, and manufactured homes.
Higher limits apply in designated high-cost areas.
| Units | Standard Limit | High-Cost Limit |
|---|---|---|
| 1 | $806,500 | $1,209,750 |
| 2 | $1,032,650 | $1,548,975 |
| 3 | $1,248,150 | $1,872,225 |
| 4 | $1,551,250 | $2,326,875 |
For more information about mortgage loan limits by county, use our interactive mortgage loan limit guide.
Occupancy Requirements
HomeReady loans are for primary residences only. You must intend to occupy the property within 60 days of closing and continue to occupy it as your primary residence until you sell, refinance, or pay off the loan.
Specific rules by property type:
| Property Type | Occupancy Rule |
|---|---|
| 1-unit home | Live in as primary residence |
| 2-unit home | Live in one unit; may rent out the other unit |
| 3-unit home | Live in one unit; may rent out other units |
| 4-unit home | Live in one unit; may rent out other units |
Fannie Mae may also require proof of occupancy, such as utility bills or identification updates, in cases where occupancy is in question.
Program Restrictions
HomeReady is a flexible mortgage program, but Fannie Mae puts restrictions on how the program can be used to keep it focused as an affordable mortgage program for all who qualify.
| Restriction | Details |
|---|---|
| Refinance | No cash-out mortgages allowed |
| Boarder income | Requires proof of shared residency and payment history |
| Occupancy | Primary residences only |
| Reserves | 2 months for down payments less than 10% |
| Non-Occupant co-borrowers | Immediate family members only |
These restrictions help keep HomeReady focused on owner-occupied, sustainable homeownership.
Key Takeaway
HomeReady loans are designed for low- and moderate-income borrowers who plan to live in the home they purchase. Meeting the income, credit, property, and occupancy rules is essential for eligibility. If you don’t meet these rules, explore other mortgage options.
Frequently Asked Questions About HomeReady Loan Requirements
Find answers to common questions about HomeReady borrower, property, and loan rules.
What is the maximum income for HomeReady?
80% of the Area Median Income (AMI) for the property location.
Can I use HomeReady for an investment property?
No. HomeReady is for primary residences only.
What is the minimum credit score?
620, using the average of each borrower's median score.
Are there property type restrictions?
Yes. You can use HomeReady for 1–4 unit primary residences, certain condos, and manufactured homes that meet Fannie Mae guidelines.
Does HomeReady have a maximum loan amount?
Yes. You must stay within conforming loan limits for your property size and county.
