Comparison: HomeReady vs. Home Possible Mortgage Programs
| Feature | HomeReady (Fannie Mae) | Home Possible (Freddie Mac) |
|---|---|---|
| Income Limits | 80% AMI for most areas; higher limits available in certain areas | 80% AMI in most areas (no exceptions) |
| Down Payment | As low as 3% for single-family homes | As low as 3% for single-family homes |
| Multi-Unit Properties | Financing available up to 75% LTV | Financing available up to 95% LTV |
| Boarder Income | Permitted as part of qualifying income | Permitted as part of qualifying income |
| Homebuyer Education | Required for at least one borrower | Required for all first-time homebuyers |
| PMI Costs | Reduced premiums; cancelable at 80% LTV | Reduced premiums; cancelable at 80% LTV |
Which Program Is Right for You?
Both HomeReady and Home Possible are designed to make homeownership more accessible, especially for low- to moderate-income buyers. Here’s how to decide:
- Choose HomeReady if:
- You need higher income limits in specific areas.
- You’re purchasing a multi-unit property and want to include boarder income in your qualifications.
- Choose Home Possible if:
- You want higher LTV financing (up to 95%) for a multi-unit property.
- Your income fits within the 80% AMI limit for your area.
Ready to Learn More?
If you’re interested in finding out which program is the best fit for your needs, I’d love to help! Let’s discuss your options and take the next step toward homeownership.