Mortgage Navigator • Conventional • Affordable Products

HomeReady vs. Home Possible: similar mission, separate agency programs.

Both programs can reduce barriers for qualifying lower-income borrowers, but they should be compared under the current Fannie and Freddie guides rather than treated as interchangeable.

FeatureHomeReadyHome Possible
AgencyFannie MaeFreddie Mac
Income frameworkGenerally limited to 80% of area median income under current program rules.Generally limited to 80% of area median income under current program rules.
Purchase LTVCan support eligible 97% LTV transactions.Can support eligible 97% LTV transactions.
UnderwritingDU / applicable Fannie execution.LPA / applicable Freddie execution.
Where we'll go deeper: future pages will compare borrower contribution, gifts/grants, boarder/ADU income, education, mortgage insurance, pricing and refinance treatment using current agency sources.
Income limit is only one screen. Product eligibility, occupancy, property, AUS, MI and lender requirements still apply.

Official sources

Fannie Mae Selling Guide · Freddie Mac Seller/Servicer Guide · FHFA Conforming Loan Limits

Agency guides control over summaries. Lender and mortgage-insurer overlays can be more restrictive.