HomeReady® Mortgage Loans

HomeReady® Mortgage Loans from Fannie Mae

Homeownership should be within reach for everyone. That’s why we offer HomeReady® Mortgage Loans from Fannie Mae, designed to provide affordable and flexible options for creditworthy low-to-moderate income borrowers and first-time homebuyers. HomeReady® is a Fannie Mae mortgage program that offers low down payment options, flexible underwriting, and innovative features to help more people qualify for a mortgage. Whether you’re buying your first home or looking to refinance, HomeReady® can help make your homeownership dreams a reality.

Membership and eligibility requirements apply, with approval subject to application, credit, and property considerations.

Why Choose a HomeReady® Mortgage?

Low Down Payments: HomeReady® loans require down payments as low as 3%, making it easier to afford your new home.

Flexible Credit Requirements: Designed to accommodate a variety of financial situations, including those with non-traditional credit histories.

Competitive Interest Rates: Benefit from competitive rates that make your home purchase or refinance more affordable.

Multiple Property Types: Use HomeReady® for single-family homes, condos, and multi-unit properties.

Refinance Options: HomeReady® also provides refinancing opportunities to help you secure better rates and terms.

Benefits of HomeReady® Mortgages

Affordable Entry: With low down payment requirements, HomeReady® makes homeownership accessible with a smaller upfront cost.

Flexible Funding: Use a combination of your own funds, gifts, grants, or other assistance programs to cover your down payment and closing costs.

Homeownership Education: HomeReady® encourages financial literacy by requiring a homeownership education course, helping you make informed decisions.

Inclusive: Ideal for a wide range of borrowers, including first-time homebuyers, repeat buyers, and those with limited credit histories.

How to Qualify for a HomeReady® Mortgage Loan

Qualifying for a HomeReady® Mortgage Loan from Fannie Mae is designed to be accessible and straightforward, making it easier for low-to-moderate income borrowers and first-time homebuyers to achieve their homeownership goals. Here’s a detailed guide on how to qualify for a HomeReady® Mortgage Loan:

1. Income Eligibility

Area Median Income (AMI): Your income should generally be at or below 80% of the area median income (AMI) for the property’s location. You can check your eligibility using Fannie Mae’s AMI lookup tool.
Flexible Income Sources: HomeReady® allows for a variety of income sources, including salaries, part-time jobs, rental income from boarders, and income from non-borrower household members.

2. Credit Score

Minimum Credit Score: A minimum credit score of 620 is typically required. However, having a higher credit score can improve your chances of qualifying and securing better interest rates.

3. Down Payment

Low Down Payment: You can qualify with a down payment as low as 3% of the home’s purchase price. This makes it easier to afford a new home without a large upfront cost.

4. Homeownership Education

Mandatory Education: Complete a homeownership education course through an approved provider, such as Framework. This course is designed to prepare you for the responsibilities of homeownership and provide you with valuable financial insights.

5. Property Requirements

Eligible Property Types: HomeReady® loans can be used to purchase various property types, including single-family homes, condos, and multi-unit properties (up to four units).
Primary Residence: The property must be your primary residence. Investment properties are not eligible under this program.

6. Debt-to-Income Ratio (DTI)

DTI Ratio: Your debt-to-income ratio should generally not exceed 50%. This means that your monthly debt payments, including your new mortgage, should be 50% or less of your gross monthly income.

7. Occupant Borrowers

Flexible Borrowers: HomeReady® allows for flexible borrower scenarios, including co-borrowers who do not live in the home. This can include parents or other family members who are helping you qualify.

8. Employment and Income Stability

Stable Employment: Demonstrate a stable employment history and reliable income sources. This helps assure lenders of your ability to repay the loan.

9. Loan-to-Value Ratio (LTV)

High LTV Ratios: HomeReady® allows for high LTV ratios, up to 97%, meaning you can borrow up to 97% of the home’s value. This supports the low down payment requirement.

Frequently Asked Questions

Who is People Driven Credit Union's Mortgage Specialist?

Meet Our PDCU Mortgage Specialist

Michelle Dzon is authorized to act as an agent on behalf of People Driven Credit Union. Contact her for personalized assistance with your mortgage needs.

Michelle Dzon

Member First Mortgage

michelle.dzon@memberfirstmortgage.com

616-301-1714 | NMLS ID: #401292

What is a HomeReady® Mortgage Loan?

A HomeReady® Mortgage Loan is a flexible, affordable loan program from Fannie Mae designed to help low-to-moderate income borrowers and first-time homebuyers achieve homeownership. It features low down payment requirements and flexible underwriting standards to make buying a home more accessible.

Who is eligible for a HomeReady® Mortgage Loan?

HomeReady® Mortgage Loans are available to creditworthy low-to-moderate income borrowers. Income limits typically apply, and your income must generally be at or below 80% of the area median income (AMI) for the location of the property. The program is open to both first-time and repeat homebuyers.

What are the down payment requirements for a HomeReady® Mortgage?

The minimum down payment required for a HomeReady® Mortgage is as low as 3% of the home's purchase price. This low down payment option makes it easier to afford a new home without a large upfront cost.

Can I use gift funds or grants for my down payment?

Yes, HomeReady® allows you to use gift funds from relatives, friends, or other eligible sources for your down payment and closing costs. Grants and down payment assistance programs can also be used.

What types of properties are eligible for HomeReady® Mortgages?

HomeReady® Mortgages can be used to finance various types of properties, including single-family homes, condominiums, and multi-unit properties (up to four units). The property must be used as your primary residence.

What are the credit score requirements for a HomeReady® Mortgage?

The minimum credit score required for a HomeReady® Mortgage is typically 620. However, having a higher credit score can improve your chances of qualifying and securing better interest rates.

Is homeownership education required?

Yes, HomeReady® requires first-time homebuyers to complete a homeownership education course from an approved provider, such as Framework. This course helps prepare you for the responsibilities of homeownership and provides valuable financial insights.

Can I refinance an existing mortgage with a HomeReady® Mortgage?

Yes, HomeReady® offers refinancing options that can help you take advantage of lower interest rates and better loan terms.

Who Can Qualify for a HomeReady® Mortgage?

The HomeReady® mortgage, offered through Fannie Mae, is designed to make homeownership more accessible for low- to moderate-income borrowers. This program allows for down payments as low as 3% and offers flexible income sources, including contributions from household members who aren’t on the loan. First-time and repeat homebuyers can qualify, and HomeReady® mortgages are available for primary residences. To be eligible, borrowers typically need a minimum credit score of 620 and must complete an approved homeownership education course if they are first-time buyers.

Using a HomeReady Mortgage to Refinance Your Existing Loan

The HomeReady® program isn’t just for purchasing homes—it also offers an opportunity for borrowers to refinance their existing mortgages. Eligible homeowners can use a HomeReady® refinance to secure a lower interest rate, reduce monthly payments, or change loan terms. Like the purchase option, the refinance program allows for flexible income qualifications and may help borrowers who have built up equity in their homes but need a more affordable loan structure. Refinancing through HomeReady® can be especially beneficial for homeowners looking to consolidate debt or transition from an adjustable-rate mortgage (ARM) to a more stable fixed-rate loan while taking advantage of the program’s competitive rates and reduced mortgage insurance premiums. At PDCU, our knowledgeable Fannie Mae mortgage team is here to assist you through every step of the home-buying process, ensuring you find the right loan to meet your needs. As a member-owned credit union, we put your best interests first, offering personalized service and expert guidance.

Schedule an Appointment

Schedule an appointment at one of our branches for a variety of services, including opening new accounts or membership, getting assistance with card services like issuing a new debit card or applying for a credit card. Book an appointment today for personalized, one-on-one assistance from our team. Schedule an Appointment

What are the benefits of a HomeReady® Mortgage Loan?

HomeReady® offers numerous benefits, including low down payment options, flexible underwriting standards, competitive interest rates, and the ability to use various sources of funds for down payments. It also promotes financial literacy through required homeownership education.

How can I apply for a HomeReady® Mortgage Loan?

Apply online or contact our mortgage specialist, Michelle Dzon, who will guide you through the application process, help you understand your options, and determine your eligibility. Michelle Dzon is authorized to act as an agent on behalf of People Driven Credit Union. Contact her for personalized assistance with your mortgage needs.

Michelle Dzon

Member First Mortgage

michelle.dzon@memberfirstmortgage.com

616-301-1714 | NMLS ID: #401292

What is the debt-to-income (DTI) ratio requirement?

Your debt-to-income ratio should generally not exceed 50%. This means that your total monthly debt payments, including your new mortgage, should be 50% or less of your gross monthly income.

What documents do I need to apply for a mortgage?

To apply for a mortgage, you will need to provide the following documents to verify your identity, income, assets, and employment. Required Documents & Why They are Needed

Copy of your driver’s license or state-issued ID – Verifies your identity and legal name.
Last 2 years of W-2 forms – Prove your employment history and income stability.
Most recent 30 days of pay stubs – Shows your current income and allows us to calculate your debt-to-income ratio accurately.
Last 2 years of Federal Tax Returns (including all schedules) – Confirms your reported income and helps lenders assess your overall financial picture.
Most recent two months of bank statements (all pages) – Verifies your assets, down payment funds, and that you have enough reserves after closing.
Contact information for your homeowner’s insurance agent – Required to set up the proper insurance coverage for the property at closing.

Why These Documents Matter Lenders use these documents to confirm you can afford the loan and meet underwriting guidelines. Having them ready when you apply can shorten your approval time from weeks to days. 5 Helpful Hints When Preparing Mortgage Documents

Gather everything before you apply — it can save you weeks of delays.
Make sure all pages of the bank statements are included.
Include all W-2s and tax returns, even if you filed jointly.
Scan or take clear photos of your documents for easy upload.

How do I check the status of my loan application?

How do I check my loan application status at People Driven Credit Union?

You can check your loan application status by contacting People Driven Credit Union or your assigned loan specialist. Many members ask how do I check my loan application status because they want fast updates on their progress.

How to check the status

Call PDCU member or loan support at 248-263-4100.
Have your identifying information ready for verification.
Ask whether any additional documents are needed to proceed.

Checking your loan application status at People Driven Credit Union is simple and secure. You receive clear answers quickly. Our team keeps you informed every step of the way.

Call for Your Status Update

Pick up the phone and dial 248-263-4100 during business hours. Our loan specialists answer right away. Give them your name, application number, or Social Security number. They pull up your file instantly.

Prepare for the Call

Have your driver’s license or member number ready. Note any recent emails or letters from us. This speeds up the process so you get answers faster.

Common Questions

How long does a review usually take? Timing varies by loan type and application volume, so contact PDCU for your current status timeline.

Get Help from Our Team

Call us at 248-263-4100 during business hours. Our team checks your status right away. You can also visit any branch in Livonia, Southfield, Warren, Ypsilanti, or Romeo.

5 Helpful Hints for Checking Your Loan Application Status

Call early in the day for shorter wait times.
Write down your application number before you call.
Ask for an email summary of your current status.
Check your spam folder for any updates from PDCU.
Contact us at 248-263-4100 if you need to submit more documents.

People Driven Credit Union keeps you informed about your loan application status. You feel confident knowing exactly where things stand. Our team works hard to move your application forward quickly. Many members receive approval updates within days. Thank you for trusting us with your loan needs. Our team is always ready to help you reach your financial goals.

Disclosures

Equal Housing Lender. Member First Mortgage, LLC (MFM) NMLS ID# 149532. All loans are subject to credit approval. Terms and conditions apply. Program availability is subject to change without notice.

Available to all members using a conventional mortgage loan program on a purchase transaction with People Driven Credit Union in the State of Michigan. Not eligible on multi-unit properties, condos, townhomes, or manufactured houses. The Loan Example is current as of 9/9/2025 and based on a $200,000 loan amount with a conventional 30-year fixed rate term (360 monthly principal and interest payments of $1,231.43); 0% Down Payment; 6.25% Interest Rate with an Annual Percentage Rate (APR) of 6.465%. Rates quoted assume excellent borrower credit history. Payment example does not include taxes and insurance; the actual payment obligation will be higher. The cost of Private Mortgage Insurance (PMI) is waived as part of this promotion, to be paid by the Lender. This is not a commitment to lend. All lending products are subject to credit and property approval. Additional restrictions may apply. Member First Mortgage, LLC (MFM) is a partner of People Driven Credit Union. Michelle Dzon #401292, is authorized to act as agent of People Driven Credit Union (24333 Lahser Road, Southfield, MI 48033 | (248) 263.4100 | NMLS ID: 776727) and is authorized to represent Member First Mortgage, LLC, a licensed Mortgage Lender/Servicer (Corporate Office: 616 44th Street SE, Grand Rapids, MI 49548 | (616) 538.1818 | NMLS ID: 149532). For licensing information, please visit www.nmlsconsumeraccess.org. Equal Housing Opportunity.

SAFE Act Compliance Testing:
We conduct annual independent testing of our mortgage compliance in accordance with the SAFE Act (Reg G) requirements.

All other trademarks are the property of their respective owners.

People Driven Credit Union is an Equal Housing Opportunity Lender NMLS #776727

Membership Requirement

All accounts and loans require membership at People Driven Credit Union. Membership is available to individuals who live, work, worship, or attend school in the State of Michigan, as well as relatives of current members. To complete an application for any account or loan, you will need the following information:

A valid Driver's License, State ID, or Passport with your current address
Your Social Security Number

A Membership Share Savings Account is required to establish membership at People Driven Credit Union. A $5 deposit secures your ownership share in the credit union and unlocks access to our full suite of products and services. This account earns 0.01% APY with a $5 minimum deposit.

HomeReady® Mortgage Loans

Unlock Affordable Homeownership