Yes — HomeReady® is one of the strongest conventional options for first-time buyers: as little as 3% down, flexible income, cancellable PMI, and grant stacking when you qualify.
If you have never owned a home (or meet a first-time buyer definition used by a grant program), HomeReady lets you buy a primary residence with as little as 3% down while staying in conventional financing.
That means private mortgage insurance can cancel once you reach the equity milestones — a major long-term cost difference versus many FHA loans where MIP lasts for the life of the loan when you put less than 10% down.
Ryan and Steve also screen AMI eligibility, homebuyer education, gift funds, and VLIP grant pairing so your first purchase file is structured before you write an offer.
Four advantages that show up on real purchase files — not marketing fluff.
Three percent down keeps more money available for closing costs, moving, and reserves after you get the keys.
Unlike most low-down FHA scenarios, conventional PMI can come off at 20% equity and must terminate at 78% of original value on a qualifying path.
Boarder rent, ADU income, overtime, part-time pay, and non-occupant co-borrowers can strengthen a first-time file when documented.
Eligible Indiana first-time buyers can pair HomeReady with a $2,500 VLIP credit — and we still compare IHCDA, Chenoa, and Luminate Path.
A few checklist items that keep first-purchase HomeReady files moving.
| Item | Why it matters |
|---|---|
| AMI income test | Household income typically must be at or below 80% of area median for the property location. |
| Primary residence | HomeReady is for homes you will occupy — not investment purchases. |
| Education course | Often required when LTV exceeds 95% on a 3% down purchase. |
| Grant paperwork | VLIP and other DPA have their own first-time and income rules layered on top of HomeReady. |
Related HomeReady guides and first-time buyer resources.
HomeReady is not limited to first-time buyers — see how repeat buyers qualify.
How family gifts can cover down payment and closing costs.
As little as 3% down — plus gift funds and DPA pairing.
How 80% AMI works by county and household size.
Eligibility calculator, flexible income sources, and VLIP screening.
Low-down options and guidance if this is your first purchase.
$2,500 credit for qualifying HomeReady first-time buyers.
No. HomeReady is open to first-time and repeat buyers who meet income, occupancy, and credit guidelines. First-time status mainly matters for certain grants like VLIP.
Education is typically required when the loan-to-value ratio exceeds 95% — common on a 3% down purchase. We tell you early if a course is needed for your file.
Eligible Indiana first-time buyers at or below 50% AMI can often pair a $2,500 VLIP credit with HomeReady through February 28, 2027. We screen this in the HomeReady eligibility calculator.
HomeReady keeps you in conventional financing with cancellable PMI. FHA accepts lower credit in many cases but MIP often lasts for the life of the loan when you put less than 10% down. We model both.
Ryan & Steve will check your AMI eligibility, model HomeReady vs FHA, and screen VLIP grant pairing when it applies.
HomeReady is a registered trademark of Fannie Mae. All loans are subject to credit and property approval. Program guidelines, income limits, and pricing are subject to change without notice and may not be available in all areas. This website is not affiliated with or endorsed by Fannie Mae, HUD, or any government agency. Information is for educational purposes only and is not a commitment to lend.