COVID-19 updates and resources - updated 09/30/21 Dismiss Alert HomeReady underwriting HomeReady: Go!-eligible; reduced mortgage insurance coverage We provide mortgage insurance for HomeReady® mortgages. Fannie Mae's HomeReady mortgages are an ideal option for low- to moderate-income families with minimal savings to apply toward the purchase of their first home. Offered through participating lenders, HomeReady is available to borrowers who meet the program's income limits. The program's reduced mortgage insurance coverage requirement results in lower mortgage insurance costs for qualifying HomeReady borrowers. They also benefit from: Expanded income flexibilities with nonoccupant borrowers, boarder income, and accessory units A combined loan-to-value (CLTV) ratio of up to 105%, enabling borrowers to use Community Seconds® to cover a down payment and closing costs* A pre-purchase homebuyer education requirement when all borrowers on the loan are first-time homebuyers, so those new to homeownership will be better informed about their responsibilities MGIC Go!-eligible Loans with a DU® Approve/Eligible response are eligible for our MGIC Go! streamlined mortgage insurance program. HomeReady mortgage insurance coverage requirements Fannie Mae's HomeReady program’s coverage requirements differ from standard Agency requirements.** Base LTV HomeReady Coverage > 20 Years ≤ 20 Years 97% - 95.01% 25% 25% 95% - 90.01% 25% 25% 90% - 85.01% 25% 12% 85% & Below 12% 6% Use the > 20 Years columns for ARMs and manufactured homes (not MH Advantage®***) coverage requirements. Loan Center Users Expedite your MI processing by entering HomeReady Special Feature Code 900 in the MGIC Program ID # field. DU®, HomeReady®, MH Advantage® and CommunitySeconds® are Fannie Mae trademarks. *See Fannie Mae Selling Guide for Community Seconds eligibility criteria and requirements. **These coverage requirements are subject to change. While we try to keep this information current, we do not warrant the accuracy or completeness of these requirements. In addition, loans processed through an Agency AUS and specific Agency programs may have different coverage requirements. Therefore, the requirements listed above may be outdated or inapplicable; do not rely on them to determine current Agency coverage requirements. ***See Fannie Mae Selling Guide for MH Advantage® eligibility criteria and requirements. You might also like How to reach first-time homebuyers Turn more renters into first-time homebuyers with tools from MGIC. Learn how Homebuyer education options Prepare your borrowers for the homeownership process. Learn more Contact Customer Service We’re ready and waiting to answer any questions you might have. Contact us now Resources HomeReady website Fast Facts for LOs PO Terms Legal Site Security Site Map © Copyright 2021 All rights reserved. About MGIC About MGIC Careers Contact Us Master Policy MI Basics New To MGIC Popular Links First-time homebuyers Get a Rate Quote Homebuyer education Self-employed borrower worksheets Training MGIC Websites Credit Unions For Investors Loan Officer Hub MGIC Connects Readynest - Tips for homebuyers MGIC Connects Facebook LinkedIn Twitter YouTube Cookies help us improve your website experience. By using our website, you agree to our use of cookies. Privacy Warning Confirm