Mortgage Navigator • Conventional • Affordable Programs
HomeReady vs. Home Possible
The headline is similar—3% down and 80% AMI—but agency differences can change the best execution.
Where they are similar
Both are principal-residence affordable conventional programs, both currently cap qualifying income at 80% AMI, and both can support eligible one-unit transactions with very low down payments.
Where they differ
Borrower contribution on multi-unit properties, boarder/rental-income treatment, subordinate financing, homebuyer education, AUS implementation and eligible loan features are not identical.
Agency Difference — use it: if one product misses because of income structure, property type, subordinate financing or borrower contribution, compare the other agency instead of assuming “affordable conventional” is one universal rulebook.
Could the other agency solve this? Fannie Mae and Freddie Mac are not identical. If this scenario fails under one agency, compare the other agency's current rule and AUS result before assuming conventional financing is unavailable. A lender overlay is also different from an agency prohibition.
Official guide baseline
Fannie Mae Selling Guide · Freddie Mac Seller/Servicer Guide
Affordable-conventional product rules are layered on top of ordinary conventional underwriting. Income limits, occupancy, education, LTV and subordinate financing requirements must all be checked.