Conventional & Government
Low-Income Affordable
HomeReady (Fannie Mae)
Fannie Mae program with reduced mortgage insurance and flexible income sources for low-to-moderate income borrowers.
Available throughout Southern California through Francisco Williams, CCIM, NMLS #1858674.
620
Min FICO
97%
Max LTV
3%
Min down
Ideal borrower
First-time buyers under 80% Area Median Income (AMI).
Program highlights
- 3% down payment
- Reduced MI cost vs. standard conventional
- Non-borrower household income accepted for qualifying
- Boarder income and ADU rent allowed
Typical uses
- First-time home purchase at/below 80% AMI
Frequently asked questions
- How is HomeReady different from a regular conventional loan?
- HomeReady is Fannie Mae's low-income-borrower program. Key differences: 3% down payment instead of 5%, reduced private mortgage insurance costs, and income limits (up to 80% of Area Median Income for the census tract). For qualifying borrowers, the reduced PMI alone saves $100–$250/month vs. standard conventional.
- Do I have to be a first-time buyer for HomeReady?
- No — HomeReady is NOT restricted to first-time buyers. Any buyer meeting the 80% AMI income limit qualifies. This makes it one of the best conventional programs for working households in California not served by FHA.
- What are the income limits for HomeReady in my California county?
- Income limits vary by census tract, not county. In Los Angeles County the limit runs approximately $95,000–$130,000 household income depending on tract. CalHFA and Fannie Mae have online lookup tools — or I can check your specific address in 60 seconds.
Program details shown are representative guidelines and subject to individual lender overlays and CFPB / agency requirements. Rates shown are illustrative and subject to change without notice. Actual rate, APR, and terms will depend on creditworthiness, loan-to-value, property type, occupancy, loan amount, loan program, and other factors. Not all applicants will qualify.