HomeReady® Loans for Florida Homebuyers

HomeReady is a conventional home loan program created by Fannie Mae for creditworthy buyers with low to moderate incomes. It keeps the strengths of a conventional loan, such as mortgage insurance that can be removed later, while lowering the hurdles that keep many renters from buying: the down payment, the cost of mortgage insurance and the income needed to qualify.

You can put as little as 3% down on a single-family home, townhome or condo, and that money can come entirely from a gift, a grant or an approved assistance program. Income from a roommate, a rental unit or a family member who co-signs can count toward qualifying, and a record of paying rent on time can strengthen your file.

HomeReady is not only for first-time buyers. If you have owned before and your income is within the limit for the property's area, you can use it too. The home must be the one you live in.

In one sentence: if your income fits your area's limit, HomeReady can turn a small down payment into a conventional mortgage with lower monthly mortgage insurance.

Your total qualifying income must be at or below 80% of the area median income (AMI) for the property's location. The limit follows the home, not where you live today, so the same buyer can be eligible in one Florida county and over the limit in another.

• What counts: The income used to qualify every borrower on the loan, including a co-signer who will not live in the home.
• What does not count: Income from other household members who are not on the loan and are not used to qualify.
• Where to look: Enter the property address in Fannie Mae's AMI lookup tool. Limits are updated every year.
• Example: If the area median income is $90,000, the HomeReady limit is $72,000 a year. (Illustration only; use the lookup tool for real figures.)

Important: HomeReady follows Fannie Mae's Selling Guide, which can change without notice. Your loan officer will confirm the current requirements for your scenario.

On a 1-unit home, HomeReady does not require any minimum contribution from your own savings. Eligible sources include:

• Gifts: From a relative or other eligible donor, documented with a gift letter.
• Grants: From eligible agencies, nonprofits or employers.
• Community Seconds®: Approved assistance second mortgages, with combined financing up to 105% of the home's value.
• Cash on hand: Savings kept outside a bank may be used on a 1-unit home with documentation.
• Sweat equity: Work you complete on the home may count under qualifying programs.
• Seller credits: The seller can contribute toward closing costs within conventional limits.

The $2,500 very low-income purchase credit

For first-time buyers whose income is at or below 50% of the area median, Fannie Mae currently provides a $2,500 credit toward the down payment or closing costs on HomeReady purchases. The credit is available for loans Fannie Mae buys through February 2027, unless extended.

Want to combine HomeReady with a local assistance program? Review the options on our Down Payment Assistance page and ask your loan officer which can be used with your loan.

When all buyers are first-time homebuyers, at least one must complete a homeownership education course before closing. Fannie Mae's HomeView® course is free, online and takes a few hours. A course from a HUD-approved housing counseling agency also qualifies. Counseling can be worthwhile even if it is not required: it covers budgeting, the buying process and life after closing.

Freddie Mac's Home Possible® is a similar program with its own income rules. If your income is above the HomeReady limit or your credit needs more flexibility, compare our conventional and FHA options. A loan officer can price them side by side.

• Identification: A valid government-issued photo ID for each borrower.
• Income: Recent pay stubs, W-2s for the last two years, and tax returns if self-employed.
• Assets: Two months of bank statements for the down payment and closing costs.
• Gift or grant letters: If someone is helping with your down payment.
• Rent history: Lease and proof of on-time rent, if requested.
• Boarder documentation: Proof of the roommate's payments and shared address, if using that income.
• Education certificate: Your homeownership course completion, when required.
• Purchase contract: Once you are under contract on a home.

Your officer will provide a checklist for your scenario. Do not send identification or financial documents by ordinary email; use the secure upload link your officer provides.