Solutions
HomeReady & Home Possible: Low-Down Conventional
3% down conventional loans with reduced mortgage insurance, built for low-to-moderate income buyers.
Not every low-down-payment buyer wants an FHA loan with its lasting insurance. For low-to-moderate income borrowers, two conventional programs offer 3% down and a path to drop mortgage insurance later: HomeReady and Home Possible.
What makes them attractive
- Just 3% down, on a conventional loan.
- Reduced mortgage insurance compared with standard low-down conventional — and it is removable as equity grows.
- Flexible sources of funds and, on some versions, the ability to count household income that a standard loan would not.
- Homebuyer education that leaves you better prepared.
Who they fit
Buyers within the income limits for their area who want the long-term advantages of a conventional loan — especially removable mortgage insurance — without a large down payment. For many, these programs beat FHA on lifetime cost while keeping the entry low.
Pro tip
If you are a low-to-moderate income buyer weighing FHA against a 3%-down conventional option, compare the lifetime cost. Because the conventional insurance is removable, these programs often cost less over time — ask us to run both.
Common questions
What is the difference between HomeReady and FHA?
Both allow a low down payment, but HomeReady is a conventional loan with reduced, removable mortgage insurance, while FHA’s insurance usually lasts the life of the loan. For income-eligible buyers, the conventional option often costs less over time.
Do I have to be a first-time buyer to use these programs?
Not necessarily — they are aimed at low-to-moderate income buyers within area limits, and repeat buyers can often qualify. Income and the property’s location are the main tests, not first-time status.