HomeReady® allows as little as 3% down. See cash-to-close examples, gift funds, education rules over 95% LTV, and VLIP stacking.
HomeReady® Down Payment Requirements | The 2 Mortgage Guys
HomeReady® allows as little as 3% down. See cash-to-close examples, gift funds, education rules over 95% LTV, and VLIP stacking.
How Much Down Payment Is Required for HomeReady®?
3% Down — And What Else You Need at Closing
Down Payment Snapshot
Example Cash Scenarios
Ways to Reduce Cash to Close
Keep Exploring
Frequently Asked Questions
See How Much Down Payment You Really Need
HomeReady® allows as little as 3% down on an eligible primary-residence purchase — so you can keep more cash in reserves while still getting conventional financing with cancellable PMI.
The headline number is 3% of the purchase price for many HomeReady purchase loans. Your actual cash to close also includes closing costs, prepaid items (taxes, insurance, interest), and any reserves your underwriting finding requires.
When LTV exceeds 95%, homebuyer education is typically required. Putting 5% or more can remove that education requirement and lower PMI cost — a tradeoff we model dollar-for-dollar.
Ryan and Steve also screen gift funds, seller credits, VLIP grants, and other DPA so your down payment strategy matches the rest of your file.
Illustrative down payment only — closing costs and prepaids are extra and vary by contract.
HomeReady’s low down payment is only one lever — we usually stack several.
Related guides to plan your cash-to-close strategy.
Ryan & Steve will model 3% vs 5%+ scenarios, gift funds, and VLIP or DPA stacking against your real purchase price.
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.
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