As little as 3% down
HomeReady / Home Possible
Income-driven conventional programs from Fannie Mae and Freddie Mac, designed to help moderate-income buyers purchase with as little as 3% down.
HomeReady (from Fannie Mae) and Home Possible (from Freddie Mac) are conventional loans built for buyers with low to moderate income. Both allow as little as 3% down, often with lower mortgage insurance and pricing than a standard conventional loan. For many Colorado buyers who don’t want an FHA loan, they’re the best low-down-payment option available.
Who these programs fit
- First-time buyers, though you don’t have to be one
- Buyers whose income is at or below the program limit for the area, generally 80% of the area median income
- Buyers with a small down payment saved, or a gift from family
- Buyers who want mortgage insurance that can be removed later
What makes them different
- 3% down on a one-unit primary home
- Lower mortgage insurance than many standard conventional loans with the same down payment
- Flexible down payment sources, including gifts and many down payment assistance programs
- Removable mortgage insurance, like other conventional loans, once you reach enough equity
- Homebuyer education, usually a short online course, when all borrowers are first-time buyers
Income limits
Income limits are set by the location of the home and updated regularly. A home in one county may qualify while a similar home elsewhere doesn’t. We’ll check the limit for the address you’re considering.
HomeReady, Home Possible or FHA?
With good credit, these programs often cost less than FHA over time, because the mortgage insurance can come off. With lower credit, FHA may price better. We’ll run both and show you the difference.
Common questions
Which is better, HomeReady or Home Possible?
They’re similar, with small differences in guidelines. We’ll match you to whichever fits your situation and pricing best.
Can I use them to refinance?
Yes, both can be used for a rate-and-term refinance if you meet the income limit.
Do I have to live in the home?
Yes. These programs are for primary residences.
Curious if you’re under the income limit? Call us at 303-931-3239, or get prequalified online.