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HomeReady Loan — 3% Down Conventional Mortgage
The HomeReady loan is Fannie Mae's 3% down conventional mortgage for creditworthy low-income buyers — with reduced mortgage insurance, flexible income sources, and no first-time-buyer requirement.
HomeReady is a Fannie Mae conventional program for low-to-moderate income borrowers featuring a reduced minimum down payment, flexible sources of funds, and reduced mortgage insurance coverage versus standard conventional loans. Income limits based on area median income, occupancy requirements, and homeownership education requirements determine eligibility.
- ✓Fannie Mae conventional program — 3% minimum down payment (97% LTV) on a 1-unit primary residence.
- ✓Qualifying income must be at or below 80% of the Area Median Income (AMI) for the property location (per the current Fannie Mae Selling Guide).
- ✓Mortgage insurance is reduced vs. standard conventional above 90% LTV and can be canceled at 80% LTV — unlike FHA MIP.
- ✓Down payment and closing costs can come 100% from gifts, grants, employer assistance, or Community Seconds — no minimum borrower contribution on 1-unit primaries.
- ✓Homeownership education (Fannie Mae HomeView® or an equivalent HUD-approved course) is required for at least one borrower when all borrowers are first-time buyers.
Pricing snapshot
Live ratesLive pricing. Rates are retrieved from our pricing provider when you run a scenario.HomeReady-Style Conventional 3% Down Rates — Today's Options at a Glance
Four real options from today's wholesale pricing for one documented sample scenario per program — no form needed. Updated twice each business day, about 10 AM and 2 PM Eastern. Your own rate depends on your credit, down payment, property, state and lock date.
Live pricing tool
Live ratesLive pricing. Rates are retrieved from our pricing provider when you run a scenario.Live HomeReady-Style Conventional 3% Down Rates
Enter your scenario to see live wholesale pricing for Florida and Colorado. Figures are illustrative and not a quote, lock, offer, or commitment to lend; binding figures appear on your Loan Estimate.
Conventional loan pricing tool
Live ratesLive pricing. Rates are retrieved from our pricing provider when you run a scenario.Conforming conventional first-mortgage pricing, with optional temporary buydown. Every figure shown comes from our pricing provider for the scenario you enter — nothing is estimated.
Pricing shown is based on the scenario entered and wholesale pricing available at the time of the search. It is not a rate lock, loan approval, commitment to lend, or guarantee of terms. Rates and pricing change frequently and expire. Your actual rate, APR, payment, and costs depend on a complete application, verified credit and income, property and appraisal review, and lender underwriting approval. Binding figures appear on your Loan Estimate. Payment shown is principal and interest only and excludes taxes, insurance and mortgage insurance. Simply Approved Mortgages LLC · NMLS# 2620881 · Equal Housing Opportunity.
Written by
Simply Approved Mortgages Team
Licensed Loan Officers · NMLS# 2620881
Get your personalized scenario summary
Complete the short request and a Simply Approved Mortgages Loan Officer sends back a written summary built from your own numbers: estimated payment breakdown, estimated cash to close, the loan structures that fit your file, and what documentation the file will need.
- Estimated monthly payment with taxes and insurance
- Estimated cash to close for your scenario
- Loan options your profile may fit
- Document checklist for your file
Takes about 3 minutes · Summary shown on screen and emailed to you
Illustration only, generated from the information you enter. Not a rate quote, lock, loan estimate, pre-qualification, offer, approval, or commitment to lend. Figures are subject to credit, income, asset and property review and full lender underwriting; binding numbers appear on your Loan Estimate.
Scenario summary
- Purchase price entered
- $412,000
- Down payment entered
- $20,600
- Estimated loan amount
- $391,400
- Estimated cash to close
- $14,300
- Programs reviewed
- 4
Sample layout with example figures — your own numbers replace these. Simply Approved Mortgages LLC · NMLS #2620881 · Equal Housing Opportunity.
What HomeReady actually is
HomeReady® is a conventional (Fannie Mae) loan program designed for creditworthy low-income borrowers. It is documented in the Fannie Mae Selling Guide B5-6. Because it is a conforming Fannie Mae loan, it uses standard FHFA conforming loan limits, standard Fannie Mae underwriting (via Desktop Underwriter®), and standard servicing — it is not a government-insured loan like FHA, VA, or USDA. Simply Approved Mortgages LLC is not affiliated with, endorsed by, or sponsored by Fannie Mae.
Income eligibility — 80% AMI
For HomeReady loans delivered to Fannie Mae on or after July 20, 2022, the qualifying borrower income (the income used to underwrite the loan) must be at or below 80% of the Area Median Income (AMI) for the census tract of the subject property. There are no census-tract exceptions above 80% AMI on new applications. AMI is published by Fannie Mae and matches HUD's income data; you can look up the exact 80% AMI for any address using Fannie Mae's AMI Lookup Tool.
Down payment — 3% and where it can come from
Minimum down payment is 3% (97% LTV) on a 1-unit principal residence with a fixed-rate mortgage. Under standard selling-guide rules, funds for the down payment and closing costs can come from:
- Personal savings and eligible assets
- Gifts from a relative, fiancé(e), or domestic partner — no minimum borrower contribution on a 1-unit primary
- Gifts of equity from a family member seller
- Grants from an eligible entity (municipality, non-profit, employer)
- Employer assistance / employer-assisted housing (EAH)
- Community Seconds® (subordinate financing from a government or non-profit) up to 105% CLTV
Mortgage insurance — a real cost advantage vs. FHA
Above 80% LTV, HomeReady requires private mortgage insurance (PMI), but with two important advantages over standard conventional and FHA:
- Reduced coverage requirement — HomeReady requires only 25% coverage from 90.01–97% LTV (vs. 35% on standard conventional). Lower coverage generally means a lower monthly PMI premium.
- Cancelable at 80% LTV — under the Homeowners Protection Act (12 CFR § 1024.20), borrower-paid PMI must be canceled when the loan reaches 80% LTV based on the original amortization schedule (or automatically at 78%). FHA MIP, by contrast, generally lasts the life of the loan on 30-year FHA financing originated after June 3, 2013.
Non-traditional income features that help borrowers qualify
HomeReady lets underwriters count income sources that many programs exclude:
- Boarder (roommate) income — rental income from a boarder living in the borrower's 1-unit home can be used, provided at least 9 of the most recent 12 months are documented and the boarder has lived with the borrower for the past 12 months (under standard selling-guide documentation rules).
- Accessory Dwelling Unit (ADU) rental income — actual or market rent from a legal ADU on a 1-unit property can be used to qualify.
- Non-occupant co-borrowers — a parent or relative not living in the home can be added to help the DTI, without occupying the property.
Want these numbers built around your file?
A short request is all it takes to get a written scenario summary back from a Simply Approved Mortgages Loan Officer. Binding figures appear on your Loan Estimate.
Homeownership education
When a purchase transaction has all occupying borrowers as first-time homebuyers, at least one borrower must complete an approved homeownership education course before closing — either Fannie Mae HomeView® (free, online) or an equivalent course from a HUD-approved counseling agency. A HUD-approved pre-purchase counseling certificate is generally accepted when it is dated within the six months before the application date.
The very low-income purchase credit
Fannie Mae currently offers a $2,500 credit on HomeReady purchase loans where at least one borrower is a first-time homebuyer and total qualifying income is at or below 50% of the area median income for the property location. The full credit must be applied to down payment and closing costs, including escrows and mortgage insurance premiums; on 2–4 unit properties above 80% LTV it can go toward the down payment only after the borrower's own 3% minimum contribution is met. Fannie Mae has published this credit for loans closing before February 1, 2027 — confirm current availability with your loan officer, since agency programs change.
Who HomeReady fits best
HomeReady is a strong fit for borrowers who need low down payment financing and either (a) fall inside the 80% AMI limit for their area or (b) want a real, cancelable mortgage insurance path rather than FHA's lifetime MIP. Most HomeReady files run through Desktop Underwriter®, though manual underwriting is available on some channels under Fannie Mae's manual matrix, which sets tighter score, LTV, DTI, and reserve requirements. Borrowers with heavier credit issues or higher DTI may still be better served by FHA. Borrowers over 80% AMI can look at standard conventional 97% LTV or the Freddie Mac Home Possible® alternative.
Rates, PMI factors, and payments shown anywhere on this site are illustrative and not a quote, lock, offer, or commitment to lend. Binding figures appear on your Loan Estimate.
How Fannie Mae HomeReady is structured
HomeReady is Fannie Mae's income-targeted, low-down-payment program. These are the parameters that define eligibility.
| What it is | How it actually works | Published by |
|---|---|---|
| Income limit | Borrower qualifying income generally may not exceed 80 percent of the area median income for the property's location, determined using Fannie Mae's published lookup tool. | Fannie Mae Selling Guide |
| Minimum down payment | As little as 3 percent down is available on eligible one-unit primary residences, sourceable from the borrower's funds, a gift, a grant, or an eligible assistance program. | Fannie Mae Selling Guide |
| Homeownership education requirement | At least one borrower must complete a Fannie Mae-approved homeownership education course when all occupying borrowers are first-time homebuyers. | Fannie Mae Selling Guide |
| Non-occupant co-borrower income | Income from a non-occupant co-borrower can be used to help a borrower qualify, subject to program loan-to-value and debt-to-income limits. | Fannie Mae Selling Guide |
| Reduced mortgage insurance coverage | HomeReady loans qualify for reduced private mortgage insurance coverage requirements compared with a standard conventional loan at the same loan-to-value. | Fannie Mae Selling Guide |
| Boarder and accessory unit income | Rental income from a boarder or an accessory dwelling unit can be counted toward qualifying income when properly documented under program-specific requirements. | Fannie Mae Selling Guide |
| Multi-unit eligibility | Two- to four-unit primary residences are eligible, with a higher minimum down payment than the one-unit minimum. | Fannie Mae Selling Guide |
| Occupancy requirement | The property financed must be the borrower's primary residence; the program does not extend to second homes or investment properties. | Fannie Mae Selling Guide |
Program parameters above are published by the agencies and enterprises named in the right-hand column and can change. They describe program rules, not an offer; eligibility, terms, conditions, and availability vary by borrower, property, lender, loan program, and state, and all loans are subject to lender underwriting and approval.
The income limit is about the property, not just the borrower
The 80 percent area median income threshold is calculated against the specific address of the property being financed, using Fannie Mae's published limits, which vary by county and can include adjustments for certain high-cost or designated underserved areas. That means a borrower earning the exact same income can qualify for HomeReady on a home in one county and exceed the limit on a comparable home a county away.
This is why checking the specific property's limit early — before falling in love with a particular listing — matters more than most buyers expect. It also means a change in the property under consideration can change program eligibility even when nothing about the borrower's income has changed at all.
Check where pricing sits before you decide
Review current rate context, then start a request so your own credit, income, and property details drive the numbers. Illustrative only — not a quote or commitment to lend.
What makes HomeReady attractive beyond the down payment percentage
The headline feature of HomeReady is 3 percent down, but the reduced mortgage insurance coverage requirement is often the larger financial benefit for qualifying borrowers, since it can meaningfully lower the ongoing mortgage insurance cost relative to a standard conventional loan at the same loan-to-value. The program also allows income sources that standard underwriting treats more conservatively, including boarder income and non-occupant co-borrower income, which can be the difference between qualifying and not for some households.
None of that changes the debt-to-income and credit underwriting a lender still performs; HomeReady adjusts the down payment, mortgage insurance, and eligible income sources, not the fundamental underwriting standards for ability to repay.
Income sources HomeReady is built to recognize
The program was designed around real household income patterns that standard underwriting sometimes treats too narrowly.
| Type of income or evidence | How it is documented | Why it works for this product |
|---|---|---|
| Primary borrower qualifying income | Standard income documentation, checked against the area median income limit for the property. | Determines both underwriting qualification and program eligibility itself. |
| Non-occupant co-borrower income | Full income documentation for the co-borrower, disclosed as non-occupant. | Program rules specifically allow this support within defined loan-to-value limits. |
| Boarder income | History of shared housing payments and documentation meeting Fannie Mae's specific requirements for this income type. | Recognizes that some households genuinely rely on this income to support housing costs. |
| Accessory dwelling unit rental income | Lease and market rent documentation for the accessory unit on eligible properties. | Reflects that ADU rental income is a real and growing source of household support. |
| Gift funds and grants for down payment | Gift letter and transfer documentation, or grant program documentation. | The program does not require all down payment funds to come from the borrower alone. |
Documentation requirements vary by lender, program, and file. The list above describes what underwriting commonly accepts, not a determination about your income or your approval.
HomeReady versus other paths to a low down payment
The right program often comes down to income eligibility and which investor your lender sells to.
| Option | Usually the better choice when | What you give up |
|---|---|---|
| HomeReady (Fannie Mae) | Your income is at or below the area limit and your lender underwrites to Fannie Mae. | Higher earners are excluded regardless of how strong the rest of the file looks. |
| Home Possible (Freddie Mac) | Same profile, but your lender sells to Freddie Mac instead. | Very similar program; the choice is typically the lender's investor relationship. |
| FHA loan | Your credit history or debt profile needs more flexible underwriting than conventional guidelines allow. | Mortgage insurance is generally required for the life of the loan on lower down payments. |
| Standard conventional loan | Your income exceeds the HomeReady limit but you still want a low down payment option. | Mortgage insurance is typically more expensive at the same loan-to-value than under HomeReady. |
How this applies in Florida and Colorado
Florida. Florida's area median income limits differ significantly between metro counties and rural counties, so the same household income can be eligible in one part of the state and not another. Buyers in flood-prone Florida markets should factor required flood insurance into the total payment used for HomeReady qualification.
Colorado. Colorado's Front Range counties generally carry higher area median income limits than rural or mountain counties, which changes eligibility from one county to the next for the same household income. Colorado buyers frequently pair HomeReady with CHFA assistance programs, which have their own separate eligibility and reservation requirements.
Simply Approved Mortgages LLC arranges residential mortgage loans in Florida and Colorado, so the two applications above are the ones we can act on for a consumer file. Business-purpose loan products may be arranged in additional states only where permitted by applicable law and pursuant to applicable licensing requirements or exemptions.
How a HomeReady loan comes together
Confirming eligibility against the property address happens before anything else in the program-specific steps.
- Check the area median income limit for the address. Your lender runs the specific property through Fannie Mae's income limit tool before treating HomeReady as an option.
- Compare your qualifying income to the limit. Documented household qualifying income is measured against the published threshold.
- Complete homeownership education if required. First-time buyers typically complete an approved course as a program condition.
- Document any non-standard income sources. Boarder income, ADU rent, or non-occupant co-borrower income is documented to program specifications if you are relying on it.
- Underwrite with reduced mortgage insurance applied. The file proceeds through underwriting with HomeReady's reduced coverage requirement reflected in your quote.
- Review your Closing Disclosure. Final terms, including mortgage insurance, are confirmed before you sign at closing.
Get a written summary of your options
Tell us the scenario you are working on and a Simply Approved Mortgages Loan Officer reviews it against real program guidelines, with no obligation.
Mistakes that cost people money on this
- Assuming a single statewide income limit rather than checking the specific property county.
- Not confirming the lender underwrites to Fannie Mae before assuming HomeReady applies.
- Skipping homeownership education planning when it is required by the program.
- Overlooking boarder or ADU income as an option when it could help the file qualify.
- Failing to layer in available down payment assistance early in the process.
Is this the right move for your situation?
The honest answer depends on the file. These are the patterns we see on both sides.
Usually a good fit when
- Your household income is at or below the area median income limit for the property.
- You want a 3 percent down payment with reduced mortgage insurance relative to standard conventional financing.
- You plan to occupy the property as your primary residence.
- You have income sources like boarder rent or a non-occupant co-borrower that standard underwriting treats conservatively.
Usually not the right move when
- Your income exceeds the limit for the specific property's area.
- You are buying a second home or investment property.
- You want a program with no education requirement under any circumstance.
None of this is a determination about your file. A Simply Approved Mortgages Loan Officer can run your actual numbers and show you what your disclosures would say.
Qualifications & requirements
HomeReady qualifications: what you actually need to qualify
| Requirement | Typical standard | Notes |
|---|---|---|
| Minimum credit score | No fixed minimum on DU Approve/Eligible* | Fannie Mae does not set a hard minimum FICO when DU issues Approve/Eligible, but the representative score still drives pricing and eligibility. Loans above 80% LTV need mortgage insurance, and MI companies generally require at least a 600 score plus their own approval. Manually underwritten files follow the manual LTV/FICO matrix (roughly 620–700 depending on LTV, DTI, and units) and appraisal transfers are not allowed under a 620 score. *Program- and investor-dependent. |
| Down payment / LTV | 3% down / 97% LTV (1 unit) | 97% LTV requires a fixed-rate loan, DU Approve/Eligible, at least one borrower with a credit score, and all borrowers occupying the property. 2–4 units go to 95% LTV. Manufactured homes other than MH Advantage® cap at 95%. |
| Loan terms | 10-, 15-, 20-, 30-year fixed; 5/6m, 7/6m, 10/6m ARMs | ARMs amortize over 30 years. 5/6m ARMs are not offered on manufactured homes. |
| CLTV with Community Seconds® | Up to 105% | A Community Seconds subordinate lien from a government or non-profit can push CLTV to 105% (95% on manufactured homes; MH Advantage® is eligible for 105%). Subordinate financing is not allowed when a temporary buydown is used. |
| Debt-to-income (DTI) | As determined by DU | DU sets the ceiling on approved files; manually underwritten loans use the 36% / 45% DTI columns of the manual matrix with corresponding score and reserve requirements. |
| Income limit | ≤ 80% AMI | Verify with Fannie Mae's AMI Lookup Tool for the exact subject-property census tract. |
| Occupancy | Owner-occupied primary only | 2nd homes and investment properties are ineligible. Purchase and limited cash-out refinance only — no cash-out. |
| Property types | SFR, 2–4 unit, 1-unit condo, PUD, 1-unit manufactured / MH Advantage® | Condos must be Fannie Mae approved. Manufactured homes require DU approval; single-wide is allowed on fixed-rate only under investor rules. |
| Minimum borrower contribution | None on 1 unit; 3% on 2–4 units above 80% LTV | On a 1-unit primary the entire down payment may come from gifts, grants, or Community Seconds. |
| Mortgage insurance | 25% coverage 90.01–97% LTV | Reduced vs. standard conventional coverage. Cancelable at 80% LTV under HPA. |
| Homeownership education | Required when all occupying borrowers are first-time buyers on a purchase | Fannie Mae HomeView® (free) or a HUD-approved counseling certificate dated within six months before application. At least one borrower must complete it before closing. |
| Reserves | 0–6 months PITI | Determined by DU on approved files; manual files require 0–6 months based on units, LTV, score, and DTI. |
| Non-occupant co-borrowers | Allowed | On manually underwritten loans, LTV/CLTV cannot exceed 90% with a non-occupant borrower (105% CLTV with Community Seconds). |
| Financed properties | Occupying borrower may own no more than two financed properties, including the subject | Properties owned solely by a non-occupant co-borrower are excluded from the count. |
| Temporary buydown | Allowed on purchases: 1-0, 2-1, or 3-2-1 | 20- or 30-year fixed only, funded by interested parties within the applicable contribution limits (lender-paid and borrower-paid buydowns are not accepted), no subordinate financing, DU approval required, and qualifying is at the note rate. |
| Loan limits | $832,750 (1 unit, 2026 baseline) | Follows the annual FHFA conforming limit — $1,066,250 (2 units), $1,288,800 (3 units), and $1,601,750 (4 units) in the 48 contiguous states, with higher limits in Alaska and Hawaii. |
Rows summarize Fannie Mae Selling Guide B5-6 (HomeReady) and related sections. Final approval depends on DU findings, the full credit / income / asset / property review, and program updates published by Fannie Mae. Not affiliated with or endorsed by Fannie Mae.
What you can do with this loan
Buy a 1-unit primary residence with only 3% down and cancelable PMI.
Use 100% gift funds from a relative to cover the down payment on a starter home.
Add a non-occupant parent as a co-borrower so DTI works, without them living in the home.
Count boarder or ADU rental income to hit the required DTI.
Refinance an existing conventional or FHA loan into a HomeReady loan (limited cash-out) to eliminate FHA lifetime MIP.
Pair with a Community Seconds® down payment assistance program to reduce out-of-pocket.
Pros & cons — honest tradeoffs
Pros — Pros & cons
- +Lower monthly payment than FHA at similar LTVs because PMI is reduced and cancelable at 80% LTV.
- +No first-time-buyer requirement — repeat buyers under 80% AMI qualify.
- +100% of down payment can be gift, grant, or Community Seconds funds.
- +Recognizes non-traditional income (boarder, ADU, non-occupant co-borrower).
- +Standard Fannie Mae servicing — same rate-and-term refinance and cash-out options available later.
Cons / watch-outs — Pros & cons
- −Strict 80% AMI ceiling — high earners in expensive metros often exceed the limit.
- −Minimum 620 FICO via DU only — no manual underwriting flexibility.
- −Primary residence only — no second homes or investment properties.
- −Homeownership education required for all-first-time-buyer transactions.
- −PMI still applies above 80% LTV until the loan naturally amortizes down.
Compare loan officer compensation on your mortgage quote
Loan officer compensation is part of the cost of a mortgage. On eligible residential loans, Simply Approved Mortgages generally uses 1.5% lender-paid compensation. Enter the compensation shown on another lender's Loan Estimate to see the difference in dollars.
Compensation difference on this illustration: $3,750.
How lower compensation can help you
When less compensation is built into pricing, there can be room for a lower interest rate, which may lower your monthly payment.
Depending on the rate you choose, pricing can sometimes include a lender credit toward third-party closing costs, so you may bring less cash to closing.
A lower rate means a lower monthly payment, which can lower your debt-to-income ratio and may help you qualify for more home on the same income.
As a mortgage broker we compare pricing from wholesale lenders instead of offering a single bank’s retail pricing.
Tip: On page 2 of your Loan Estimate, look at Section A, "Origination Charges." If the lender pays the loan officer, that compensation usually does not appear there as its own line; it is built into the interest rate. That is why comparing the rate and any lender credits side by side matters.
Already have a Loan Estimate from another bank or broker? Share it with a Simply Approved Mortgages Loan Officer, who will compare the rate, fees and credits side by side with options we can arrange. No cost to request a review.
Illustration only — not a quote, lock, offer, or commitment to lend; binding figures appear on your Loan Estimate. Lender-paid compensation is paid by the lender, not directly by you, and is part of the loan's pricing, so the loan is not free of costs. A lower compensation figure does not by itself guarantee a lower rate or lower closing costs; individual results vary by credit, loan type, property and market conditions. Residential lending in FL and CO only. Simply Approved Mortgages LLC · NMLS #2620881 · Equal Housing Opportunity.
Worked example
How this loan actually works — a full example
A repeat buyer earning $72,000/year in a census tract where 80% AMI is $78,400 wants to buy a $310,000 single-family home with the minimum down payment allowed. Her middle FICO is 712 and she has $9,300 in savings plus a $6,000 gift from her mother.
Inputs
- Qualifying income
- $72,000/yr
- 80% AMI for census tract
- $78,400
- Purchase price
- $310,000
- Down payment (3%)
- $9,300
- Gift toward closing costs
- $6,000
- Loan amount
- $300,700
- Middle FICO
- 712
Calculation
- 1Income vs. limit$72,000 ≤ $78,400 — inside 80% AMI ✔
- 2LTV$300,700 / $310,000 = 97.0% ✔
- 3MI coverage (HomeReady)25% (vs. 35% on standard conventional)
- 4Estimated PITI at illustrative 7.00%*≈ $2,320/mo including tax, insurance, and reduced PMI
- 5DTI (no other debt)$2,320 / $6,000 ≈ 38.7% — inside 50% DU cap ✔
Illustrative only — not a quote, lock, offer, or commitment to lend. Binding figures appear on your Loan Estimate.
Purchase market update
What buyers should know this month
30-Yr Fixed · national avg
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15-Yr Fixed · national avg
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2026 buying power
Conforming baseline: $832,750
FHA floor / ceiling: $541,287 – $1,249,125
3% Down
97% LTV on a 1-unit primary residence — no first-time-buyer requirement.
Reduced PMI
25% MI coverage above 90% LTV — and cancelable at 80% LTV.
≤ 80% AMI
Qualifying income must be at or below 80% AMI for the property location.
Document Checklist for HomeReady Loan
Gathering these documents up front helps your Simply Approved Mortgages Loan Officer issue a stronger pre-approval and move HomeReady Loan to Clear-to-Close faster. Actual items required vary by scenario — your loan officer will confirm the final list.
Only the income documents that apply to you are shown. Switch tabs if you have multiple income sources — your loan officer will confirm which apply.
W-2 / Employed Income
- ✓Most recent 30 days of paystubs (all borrowers, all jobs)
- ✓W-2s for the last 2 years (all employers)
- ✓Two-year employment history with employer names, addresses, and dates
- ✓Verification of Employment — written (WVOE) or electronic (EVOE through a third-party payroll service); your loan officer orders it with your signed authorization
- ✓Employment reverification within 10 days before closing — verbal or electronic, required on every file
- ✓Bonus / commission / overtime: 2-year history if used to qualify
- ✓Recent job change: offer letter and first paystub after start date
- ✓Retirees / fixed income: Social Security award letter, pension statements, 1099-R
Assets & Reserves
- ✓Most recent 2 months of bank statements (all pages)
- ✓Most recent quarterly statement for retirement / brokerage / 401(k)
- ✓Gift funds: signed gift letter + donor bank statement + transfer proof
- ✓Large deposit letters of explanation with source documentation
Identity & Residency
- ✓Government-issued photo ID (driver's license or passport)
- ✓Social Security card or ITIN letter
- ✓Two years of residency history with addresses
Credit & Liabilities
- ✓Written credit report authorization
- ✓Letter of explanation for any late payments, collections, or inquiries
- ✓Bankruptcy discharge papers or foreclosure documentation (if applicable)
- ✓Child support / alimony order (if paying or receiving)
- ✓Divorce decree / separation agreement (only if applicable)
Property & Purchase
- ✓Fully executed purchase contract with all addenda
- ✓Earnest money deposit receipt + source of funds
- ✓Homeowners insurance quote (binder before closing)
- ✓HOA / condo questionnaire and dues statement (if applicable)
Educational checklist only. Not a commitment to lend and not a complete list of conditions. Documentation requirements are governed by agency guidelines (Fannie Mae Selling Guide, FHA Handbook 4000.1 incl. Update 18 (August 12, 2026), VA Lender's Handbook, USDA HB-1-3555) and individual investor overlays. Your Simply Approved Mortgages Loan Officer will provide your specific document list based on your scenario.
Credit Reports and Credit Monitoring for HomeReady Loan
Credit is one of the four underwriting buckets every lender reviews — and one of the few you can actively improve before you apply. Monitoring your credit throughout the process helps you catch errors, fraud, and score changes early, which protects your approval timeline and your rate.
Ordering Credit for Your Pre-Approval File
Once you sign your loan application (Form 1003) and disclosures, your Simply Approved Mortgages Loan Officer orders a tri-merge residential mortgage credit report (RMCR) from Equifax, Experian, and TransUnion. This is a hard inquiry, but FICO's model treats mortgage inquiries within a 45-day window as a single event, so shopping lenders during that window will not stack on your score.
- What we need from you: signed borrower authorization, government-issued photo ID, Social Security number (or ITIN), and current address.
- What the report shows underwriters: middle FICO score, open tradelines, minimum payments, late history, collections, public records, and recent inquiries.
- How long it's valid: 120 days for conventional loans and for FHA/VA/USDA (HUD guidelines, VA Lender's Handbook Ch. 4). Older reports must be re-pulled before closing.
- Rapid rescore: if a legitimate error is on your report, we can request a rapid rescore in 3–7 business days after you supply documentation from the creditor.
This link redirects to our third-party credit vendor's payment portal. You pay the report fee directly so we can pull your tri-merge credit report for your pre-approval file. A credit pull is required for underwriting; this is not a commitment to lend.
Review and Monitor Your Credit at MyITINCredit.com
Before we pull your file, review and monitor your credit at MyITINCredit.com. Their $1 promotional trial gives you tri-bureau visibility plus ongoing credit monitoring so you can catch changes, disputes, or new accounts as they appear — not after they've already delayed your loan.
- Verify accuracy: confirm names, addresses, SSN/ITIN, and every open account belong to you.
- Dispute errors: the Fair Credit Reporting Act gives you the right to dispute inaccurate items directly with the bureau — no charge.
- Address collections and charge-offs: a settled or paid collection can be documented in advance so it does not stall underwriting.
- Pay down utilization: credit-card balances reported below 30% of the limit typically produce the strongest scores.
- Avoid new credit: do not open new cards, finance a car, or co-sign for anyone from now through closing.
- Monitor continuously: credit monitoring alerts you to new inquiries, balance changes, and potential identity theft while your loan is in process.
MyITINCredit.com is a service operated by Simply Approved Corporation (a DBA of that entity), which is the parent company of Simply Approved Mortgages LLC. Simply Approved Mortgages may receive subscription revenue if you choose to enroll. Credit monitoring through MyITINCredit.com is optional and is not required to apply for or obtain a mortgage with us. Promotional pricing, trial terms, and monitoring features are set by MyITINCredit.com and subject to change.
Why credit monitoring matters during a mortgage — A single new collection, missed payment, or unauthorized inquiry can change your qualifying score or trigger additional underwriting conditions. Typical minimum scores* — Conventional 620, FHA 580 (3.5% down) or 500 (10% down), VA no HUD minimum (most lenders 580–620), USDA typically 640, Jumbo 680–740, Doctor Mortgage 680–700+, Non-QM/DSCR varies by program, ITIN 620–680 alternative credit. Investor and lender overlays apply; individual results vary. Not a commitment to lend.
Cost and payment tools
Run your payment, affordability, closing cost and refinance numbers
Monthly payment, affordability, closing costs, refinance break-even and early payoff, all on one screen. This page is not written for one state, so property tax, insurance and transfer or recording charges start at neutral placeholder assumptions rather than published averages — Transfer, documentary-stamp and recording charges are set by your state and county — enter your own figure, or open the state page for a sourced seed. Insurance and tax assumptions vary widely by state, county and property, so replace these starting values with quotes for your address. Every figure is an illustrative estimate, not a quote, lock, offer, approval, or commitment to lend.
Your inputs
Estimated result
- Down payment
- $20,000
- Loan amount
- $380,000
- Principal & interest
- $2,402
- Property tax
- $333/mo
- Homeowners insurance
- $167/mo
- Estimated total monthly
- $2,902/mo
Reference sources: Tax Foundation — property taxes paid as a percentage of owner-occupied housing value, NAIC — Homeowners Insurance Report, CFPB — Understanding your Loan Estimate.
Assumptions, methodology, and limitations
Principal and interest use the standard amortization formula on the loan amount you enter. This page does not target a single state, so the property tax and insurance fields start at neutral placeholder assumptions rather than published averages — replace them with figures for your own address, or open the matching state page for sourced seeds. Closing costs apply your state's transfer / documentary-stamp practice (0.00% of price used as the buyer-side seed) plus typical title, recording, appraisal, credit and prepaid escrow lines. Refinance break-even divides your entered costs by the monthly payment difference. Early payoff runs a month-by-month amortization with your extra principal.
These tools do not include mortgage insurance, funding or guarantee fees, HOA special assessments, flood or windstorm premiums, seller credits, lender credits, discount points, or county and municipal charges specific to your parcel. Statewide averages will not match any individual property. Figures are estimates only.
Illustrative only. Binding figures appear on your Loan Estimate, and terms vary by borrower, property, lender, program, and state.
Turn these estimates into real numbers
Send your scenario to a Simply Approved Mortgages Loan Officer and get a written summary back, or compare where rates sit today. Educational only — not a quote, lock, offer, approval, or commitment to lend.
Frequently Asked Questions
Answers written by licensed loan officers.
Ask SAM anything about mortgages
SAM is the Simply Approved Mortgages AI assistant. It answers general questions using the reviewed guides published on this site and links you to the primary government source. It is educational only — it does not quote a rate, payment, APR, approval or commitment to lend. A Simply Approved Mortgages Loan Officer reviews every scenario before any terms are confirmed.
Hi, I'm SAM — an AI assistant for Simply Approved Mortgages. I can explain loan programs, closing costs, DTI, down payments and which calculator or guide to use. I'm not a licensed loan officer, and nothing here is a quote, approval or commitment to lend.
Ask Sam AI provides general educational information only. It is an automated assistant, may be incomplete or out of date, and does not provide legal, tax or financial advice. Nothing it produces is a rate quote, APR, pre-approval, offer or commitment to lend. Never share a Social Security number, ITIN, date of birth, account number or password in chat. Simply Approved Mortgages LLC (NMLS #2620881) arranges residential mortgage loans in Florida and Colorado. Eligibility, terms, conditions and availability vary by borrower, property, lender, loan program and state, and all loans are subject to lender underwriting and approval. Equal Housing Opportunity.
Sources & Citations
- Fannie Mae — HomeReady mortgage overview — Program eligibility, income limits, and down payment structure.
- Fannie Mae — Selling Guide — Full underwriting requirements for HomeReady.
- Fannie Mae — Area median income lookup tool — Property-specific income limit lookup.
- Colorado Housing and Finance Authority — CHFA homebuyer programs — State-level assistance that can pair with HomeReady in Colorado.
Sources: government and agency publications listed above. Simply Approved Mortgages LLC is not affiliated with, endorsed by, or sponsored by HUD, FHA, VA, USDA, or any government agency. Program rules change; the published source text governs.
Trusted government resources
These independent government resources can help you research mortgage programs, rates, and your rights before you apply.
Fannie Mae
Fannie Mae — HomeReady Mortgage Selling Guide (B5-6)
Fannie Mae
Fannie Mae — AMI Lookup Tool
FHFA
FHFA — Conforming Loan Limit Values
CFPB
CFPB — Homeowners Protection Act (PMI cancellation) 12 CFR § 1024.20
HUD
HUD — Find a Housing Counseling Agency
Simply Approved Mortgages is not affiliated with HUD, the CFPB, the FTC, the VA, or any other government agency. Links are provided for your independent verification.
How this page connects
Where this fits in the conventional and agency lending library
This page sits inside our Conventional and agency lending coverage.
What most readers open next
- How PMI worksBecause anything under 20% down carries it until it cancels.
- FHA versus conventionalBecause the comparison most buyers actually need.
Explore the full guide
Keep reading — the rest of the buying playbook
Each of these is a deep-dive on one piece of the purchase mortgage process. Bookmark whichever you need next.
Guide
Home Possible® (Freddie Mac)
The Freddie Mac counterpart to HomeReady — 3% down, 80% AMI.
Read the guide →Guide
Conventional Loans
Standard Fannie Mae / Freddie Mac loans and 97% LTV programs.
Read the guide →Guide
FHA Loans
Government-insured 3.5% down alternative for lower credit.
Read the guide →Guide
First-Time Home Buyer Guide
How to buy your first home step-by-step.
Read the guide →Guide
Down Payment Assistance
Grants, DPAs, and Community Seconds programs.
Read the guide →Guide
Conforming Loan Limits
Current FHFA conforming limits by county.
Read the guide →Guide
Mortgage Pre-Approval
Get a written pre-approval before you shop.
Read the guide →Guide
Document Checklist
What we will need to underwrite your file.
Read the guide →Guide
Home Possible Loan
Freddie Mac's equivalent program for moderate-income buyers.
Read the guide →Guide
Conventional Loan Requirements
How standard conventional underwriting compares once you are above the income limit.
Read the guide →Guide
CHFA Loan Programs in Colorado
State assistance programs that can be layered with HomeReady in Colorado.
Read the guide →Internal library
Related mortgage guides across our library
Follow the next relevant guide for your scenario.
Purchase mortgages
Buying a home
Start My Approval
Complete this short request and a Simply Approved Mortgages Loan Officer will personally review your scenario. The form only asks what your program actually needs. Submitting it is not an application for credit and is not a commitment to lend.
Tell us about your scenario
The form below is tailored to Conventional loan — only the questions and documents your program needs.
Simply Approved Mortgages LLC is licensed to arrange residential mortgage loans in Florida and Colorado only. We ask first so we never collect a mortgage inquiry we are not licensed to act on.
Purchase price and down payment help us size the conforming loan.
A range is enough here — no credit report is pulled and your credit is not affected.
Illustrative estimate only — not a quote, rate lock, offer of credit, or commitment to lend.
Submitting this form is not an application for credit and is not a commitment to lend. No credit report is pulled at this step.
Follow our reporting
Add Simply Approved Mortgages as a preferred source on Google
We update these guides as HUD, FHFA, VA, USDA and CFPB publish new figures. If you want our updates to show up more often when you search Google, you can mark us as a preferred source from the Top Stories carousel:
- 1Sign in to your Google account and search a mortgage topic such as "mortgage rates".
- 2Select the icon next to "Top stories" to open the preferred sources panel.
- 3Search for Simply Approved Mortgages, tick the box, and save.
Preferred sources is a Google Search feature controlled entirely by you and by Google. Simply Approved Mortgages LLC (NMLS #2620881) does not control search results and makes no representation about how or whether our content will appear. Educational content only — not a quote, lock, offer, or commitment to lend.
Simplify Your Mortgage Journey with These Resources
Talk To A Loan Officer
A Simply Approved Mortgages Loan Officer will personally connect with you to walk through your options.
Mortgage insights & guides
Plain-language articles to help you understand the home loan process, save on closing costs, and make confident decisions.
7 things every first-time homebuyer should know before applying
From credit prep to down payment assistance, here’s how to walk into your first mortgage application with confidence.
Using your VA loan benefit: a step-by-step guide
Eligibility, the Certificate of Eligibility, funding fees, and how to maximize zero-down purchasing power.
Where your closing costs actually go (and where you can save)
A line-by-line breakdown of the Loan Estimate and the fees that are negotiable versus fixed.
Equal Housing OpportunityMortgage Broker — Not a LenderNMLS ID# 2620881NMLS Consumer AccessFlorida Mortgage Broker License #MBR7685Colorado Mortgage Company RegistrationLicensing & Disclosures
Simply Approved Mortgages LLC | NMLS #2620881
Florida Branch Office (Miami, FL) | Branch NMLS #2688012
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Business Phone: (877) 813-7219
Equal Housing Opportunity
Broker identification. Simply Approved Mortgages LLC is a mortgage broker and is not a direct lender. We arrange residential mortgage loans with third-party wholesale lenders and do not make the lender's final credit decision or fund the loan. We arrange residential mortgage loans in Florida and Colorado. Business-purpose mortgage products may be arranged in additional states only where permitted by applicable law and pursuant to applicable licensing requirements or exemptions.
Credit and program terms. All loans are subject to lender credit approval, underwriting, acceptable appraisal or valuation when required, title review, insurance, and supporting documentation. Eligibility, programs, rates, APRs, points, lender credits, fees, payments, terms, loan amounts, down-payment requirements, mortgage insurance, and availability may vary based on borrower, property, occupancy, credit profile, loan-to-value ratio, debt-to-income ratio, lender, loan program, and state and may change without notice. Not all applicants, properties, products, or programs will qualify or be available in every state. Nothing on this site constitutes a loan approval, rate lock, offer, commitment to lend, guarantee of approval, or guarantee of terms or closing.
Rates, payments and calculators. Rates, APRs, payments, down payments, loan amounts, home values, estimated equity, savings, affordability estimates, closing costs, and other calculator or scenario results displayed on this site are estimates or illustrations unless expressly stated otherwise. Actual loan terms may differ. Taxes, homeowners insurance, mortgage insurance, association dues, lender charges, broker compensation, discount points, third-party charges, and other costs may apply. Advertised rates, payments, APRs, down payments, and other credit terms are subject to the assumptions and disclosures presented with the applicable advertisement. Applicable loan terms and disclosures will be provided as required for the particular transaction.
Mortgage products. FHA, VA, USDA, conventional, jumbo, non-QM, HELOC, reverse mortgage, down-payment-assistance, investment-property, DSCR, and other mortgage products referenced on this site are subject to their individual eligibility, underwriting, property, occupancy, and program requirements. Product availability varies by lender and jurisdiction. References to a mortgage product or program do not constitute a determination that a borrower or property qualifies.
Government-backed programs. Government-backed or government-insured mortgage programs referenced on this site may be subject to requirements established by the applicable government agency in addition to lender requirements. Government insurance or guaranties generally protect participating lenders against certain losses and do not constitute a guarantee of borrower approval.
Business-purpose products. DSCR, investment-property, and other business-purpose mortgage products referenced on this site are intended for qualifying business-purpose transactions. Business-purpose loans may be subject to different requirements and protections than consumer-purpose residential mortgage loans. Borrowers are responsible for accurately disclosing property occupancy and intended use.
Down payment assistance. Down payment or closing-cost assistance programs referenced on this site may be administered by governmental entities, housing finance agencies, nonprofit organizations, lenders, or other third parties. Program availability, funding, assistance amounts, eligibility requirements, repayment or forgiveness provisions, and other terms vary and may change or become unavailable without notice. Listing or referencing a program does not guarantee funding, eligibility, or mortgage approval.
Government affiliation. Simply Approved Mortgages LLC is not a government agency and is not affiliated with, acting on behalf of, sponsored by, or endorsed by HUD, FHA, VA, USDA, or any other federal, state, or local government agency. References to government agencies, programs, benefits, data, forms, or resources are provided for informational purposes and do not imply government sponsorship or endorsement of Simply Approved Mortgages LLC.
Fair lending. Equal Housing Opportunity. Simply Approved Mortgages LLC conducts business in accordance with applicable federal and state fair-housing and equal-credit-opportunity laws and does not discriminate on any prohibited basis.
No professional advice. Content on this site is educational and general in nature and is not legal, tax, accounting, financial, investment, estate-planning, or individualized government-benefits advice. Consumers should consult appropriate qualified professionals regarding their individual circumstances.
Third-party content. References or links to government agencies, lenders, assistance programs, products, services, or other third-party websites are provided for informational purposes or convenience. Simply Approved Mortgages LLC does not control and is not responsible for third-party content, availability, accuracy, or privacy practices.
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