Sacramento HomeReady Loan
Affordable Homeownership with Low Down Payment
Buy a Home in Sacramento with Just 3% Down!
Are you looking to buy a home in Sacramento but worried about the down payment or strict loan requirements? The Fannie Mae HomeReady Loan could be your best path to homeownership!
With low down payments, flexible credit requirements, and reduced mortgage insurance costs, the Sacramento HomeReady Loan is designed to help first-time buyers, low-to-moderate income borrowers, and multi-generational households get into a home sooner and more affordably.
At New Way Mortgage, we specialize in helping Sacramento buyers maximize their loan options, including the HomeReady program. If you want to own a home with just 3% down, read on!
What is the Fannie Mae HomeReady Loan?
The HomeReady Loan is a conventional loan program created by Fannie Mae to help buyers with lower income or limited savings afford a home.
✅ Down Payment as Low as 3% – Less than an FHA loan!
✅ Lower Mortgage Insurance Costs – Save compared to FHA loans.
✅ Flexible Credit Guidelines – Minimum 620 credit score required.
✅ Income from Household Members Counts – Even if they aren’t on the loan.
✅ First-Time or Repeat Buyers Welcome – You don’t have to be a first-time buyer!
Did You Know? Unlike FHA loans, HomeReady doesn’t require upfront mortgage insurance (MIP), making it cheaper long-term!
Who Qualifies for a HomeReady Loan in Sacramento?
To qualify for Fannie Mae’s HomeReady Loan, you must meet a few basic requirements:
✔ Minimum Credit Score: 620+ (higher scores get better rates).
✔ Income Limit: Must be ≤ 80% of Sacramento’s median income (around $89,360 in most areas).
✔ Down Payment: Just 3% of the purchase price.
✔ Primary Residence: Must be your main home (no second homes or rentals).
✔ Homebuyer Education: Required if you’re a first-time buyer.
💡 Not sure if you meet the income limit? We’ll check for you and help you find the best loan option!
HomeReady Loan vs. FHA Loan: Which is Better?
Many Sacramento homebuyers wonder whether to choose HomeReady or an FHA loan. Let’s compare:
| Feature | HomeReady Loan | FHA Loan |
|---|---|---|
| Down Payment | 3% | 3.5% |
| Mortgage Insurance | Can be removed | Stays for life of loan |
| Credit Score Requirement | 620+ | 580+ (but stricter underwriting) |
| Income Limits? | Yes (80% of area median income) | No |
| Can Use Gift Funds? | Yes | Yes |
| Best For? | Buyers with good credit & lower income | Buyers with lower credit & higher debt |
✅ Choose HomeReady if you have at least a 620 credit score and want to avoid lifetime mortgage insurance costs.
How Much Do You Need for a Down Payment?
With HomeReady’s 3% down payment, you can buy a home in Sacramento for less than you think!
| Home Price | 3% Down Payment |
|---|---|
| $400,000 | $12,000 |
| $500,000 | $15,000 |
| $600,000 | $18,000 |
💰 Bonus: You can use gift funds, grants, or down payment assistance to cover your 3% down!
How to Apply for a HomeReady Loan in Sacramento
Ready to buy a home with just 3% down? Here’s how to get started!
Step 1: Get Preapproved
A HomeReady preapproval will show you how much home you can afford and make your offer more competitive.
Step 2: Find a Home That Meets HomeReady Guidelines
Work with a Sacramento real estate agent who understands HomeReady requirements.
Step 3: Submit Your Offer
Your preapproval gives you a strong negotiating position, even in a competitive market!
Step 4: Loan Processing & Underwriting
We’ll handle all the paperwork, including verifying your income, assets, and household contributions.
Step 5: Close & Move In!
Once your loan is approved, you’ll get the keys to your new home and start building equity right away!
Why Sacramento Homebuyers Love HomeReady Loans
Sacramento’s real estate market is competitive, but HomeReady makes it easier for buyers with lower income and limited savings to get into a home.
✔ Lower Down Payment Than FHA – Just 3% down instead of 3.5%.
✔ Lower Monthly Costs – Mortgage insurance drops off once you reach 20% equity.
✔ More Buying Power – Income from roommates or family members can help you qualify.
✔ Easier Approval – HomeReady is less restrictive than conventional loans.
💡 Thinking about buying? We’ll help you get the best HomeReady mortgage for your situation!
Get Preapproved for a Sacramento HomeReady Loan Today!
At New Way Mortgage, we specialize in affordable loan programs like HomeReady to help Sacramento homebuyers get into a home with less money down.
📞 Call or text us at 916-465-6639
📧 Email us at hello@newwaymortgage.com
📅 Schedule an appointment HERE
📺 Subscribe to our YouTube channel at www.newwayhome.com for expert home loan advice!
FAQs About the Sacramento HomeReady Loan
1. Can I qualify for HomeReady if I’ve owned a home before?
Yes! HomeReady is NOT just for first-time buyers—as long as you meet the income requirements.
2. How do I know if I meet the HomeReady income limit?
Income must be at or below 80% of the area median income—we can check for you!
3. Can I use HomeReady for a duplex or multi-unit home?
Yes! HomeReady allows 2-4 unit properties, as long as one is your primary residence.
4. Is mortgage insurance required for HomeReady loans?
Yes, but it’s cheaper than FHA loans and can be removed once you reach 20% equity.
5. What if I don’t have the 3% down payment saved?
You can use gift funds, grants, or down payment assistance programs to cover it!
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