The 3% conventional eligibility path

Nine steps.
Low down payment, reduced MI.

HomeReady (Fannie Mae) and Home Possible (Freddie Mac) offer a low down payment and reduced mortgage insurance for eligible buyers. Income limits apply, and homebuyer education is required - here is the path from your first AMI check to closing day.

The eligibility path, step by step

Step 1

Check your AMI

Confirm your household income is at or below 80% of the area median income (AMI) for the property location - the foundational eligibility test.

Owner You

Step 2

Start homebuyer education

At least one borrower completes an approved course (Framework or HUD-approved) before loan closing - required, not optional.

Owner You

Step 3

Get pre-approved

Pre-approval confirms program eligibility, AMI compliance, and your true purchase range before you commit to a home.

Owner Lender

Step 4

Shop with confidence

Pre-approved and education underway - shop knowing your budget and that your loan structure is verified and ready.

Owner You

Step 5

Make an offer

A clean conventional offer backed by solid pre-approval competes well; your agent helps position it effectively.

Owner Agent

Step 6

Appraisal

Standard conventional appraisal confirms value; flexible appraisal options are available for HomeReady per Fannie Mae guidelines.

Owner Appraiser

Step 7

Underwriting

The lender reviews your full file for program compliance, including income limits and education completion - respond to conditions promptly.

Owner Lender

Step 8

Clear to close

Final verifications - confirm your education certificate is complete and income documentation is current, with no last-minute changes.

Owner Lender

Step 9

Close and own

Keys in hand - a conventional loan, reduced MI, and equity building from day one.

Owner You

HomeReady vs Home Possible, side by side

HomeReady - Fannie Mae

Boarder income and other non-borrower household income may count toward qualification, and eligible low-income census tracts carry no income limit at all.

Income limit 80% AMI, waived in some tracts Education Required, Framework

Household income flexibility

Income limit exceptions

Education requirement

Home Possible - Freddie Mac

Non-borrower household income may count in some cases, and the income limit is a straight 80% AMI test at the property location.

Income limit 80% AMI, property location Education Required, HUD-approved

Household income flexibility

Income limit exceptions

Education requirement

Income-limit pointers

Program facts, not offers - four things to verify with a current source before you rely on a number.

Always check current limits

Income limits are set by Fannie Mae and Freddie Mac and change periodically - verify at the AMI lookup tool for the property's exact address.

Source: Fannie Mae / Freddie Mac AMI lookup tool

The property location decides it

The AMI limit is based on where the home is, not where you live today - two nearby addresses can have different limits.

Basis: Property address, not your current address

Household income may help you qualify

HomeReady may allow non-borrower household member income to count toward qualification - ask us to check your specific case.

Program: HomeReady non-borrower household income

Some areas have no income limit

HomeReady has no income limit for properties in designated low-income census tracts - the property address determines eligibility.

Where: Designated low-income census tracts

We confirm your exact income limit and property eligibility together at the first call - this is a program-fact overview, not a personalized quote.

Check your AMI and see your numbers - free

We verify your income limit eligibility, compare HomeReady vs Home Possible vs standard conventional, and model your MI picture side by side.

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{{compliance.pendingLabel}} Equal Housing Opportunity. {{lo.company}}, NMLS #{{lo.nmls}} (Company NMLS #{{compliance.companyNmls}}). Program parameters per current guidelines, subject to change; verify at application. HomeReady: Fannie Mae trademark. Home Possible: Freddie Mac trademark. CrossCountry Mortgage, LLC is not affiliated with Fannie Mae, Freddie Mac, or any government agency. Income limits based on 80% AMI per HUD for property location. Homebuyer education required. Not an offer, commitment, or guarantee. All loans subject to credit approval and underwriting; not all applicants will qualify. This co-marketed seminar is cost-split by fair market value per RESPA; no party pays for referrals. NMLS Consumer Access: www.nmlsconsumeraccess.org.