HomeReady mortgages are offered by Fannie Mae and geared towards helping low-to moderate-income borrowers buy or refinance their homes. HomeReady loans reduce the typical down payment and mortgage insurance requirements, but they're also more flexible about allowing contributions from other people. This makes HomeReady an ideal choice if you're relying on others to help fund your home purchase.
Advantages of HomeReady Mortgage:
How do I qualify for a HomeReady Mortgage?
In order to qualify you'll have to meet a minimum credit score of 620 and participate in homeownership education courses approved by the program.
Your income must be less than or equal to the area median income (AMI). The AMI of your home address is determined according to US Census tracts, which you can look up on Fannie Mae's HomeReady eligibility page. As long as your personal income isn't higher than the AMI for the address where you want to buy or refinance, you should be able to apply for a HomeReady mortgage.