86 Counties with NO HomeReady or Home Possible Income Limit
Did you know there are low-cost conventional loan programs with no income limits?
- Available in Low to Moderate Income Census Tracts
- Offers discounted fees and mortgage insurance
- Down Payment as low as 3%
- Eligibility based on borrower income limits by County
- Income limit can be waived if buying in designated County
HomeReady & Home Possible
Fannie Mae offers a special loan program, HomeReady, in low-to-moderate income areas. If you are eligible, HomeReady offers reduced fees, reduced mortgage insurance, and as low as a 3% down payment.
Freddie Mac also offers a special loan program named Home Possible. Like it’s Fannie Mae sister loan, Home Possible offers reduced fees, reduced mortgage insurance, and as low as 3% down payment.
These programs are typically limited by putting income restrictions on you. This restriction comes in the form of a maximum income to be eligible for the discounted mortgage.
Qualifying for a Discount Mortgage
These special discounted mortgages are available anywhere in the United States. You must be able to qualify for a Conventional loan, as well as meet additional requirements.
Common Qualifying Features include:
- Cannot own another home
- Do not always have to be first time home buyer
- Flexible income sources
- Flexible asset requirements
- Maximum conforming conventional loan limit (no high balance)
- Limited fees and discounted PMI increase purchasing power
Want more details? Read More About HomeReady or Home Possible HERE
86 Counties with No Income Limit
If you think your income exceeds the HomeReady and Home Possible County limits, you’ll want to make sure.
There are 86 Counties in 28 States where there is no income limit anywhere in the County or Census Area.
If you are buying or refinancing a home in one of these Counties, a HomeReady or Home Possible loan should probably be put on the table for consideration.
Alaska
- Kusilvak Census Area, AK
- Lake and Peninsula Borough, AK
- Wade Hampton Census Area, AK
- Yukon-Koyukuk Census Area, AK
Alabama
Colorado
- Baca County, CO
- Bent County, CO
- Costilla County, CO
- Crowley County, CO
- Custer County, CO
- Dolores County, CO
- Saguache County, CO
Georgia
- Clay County, GA
- Heard County, GA
- Lamar County, GA
- Lincoln County, GA
- Quitman County, GA
- Stewart County, GA
- Wheeler County, GA
Idaho
Illinois
Indiana
Kentucky
Louisiana
Michigan
Missouri
Mississippi
- Benton County, MS
- Holmes County, MS
- Humphreys County, MS
- Issaquena County, MS
- Jefferson County, MS
- Simpson County, MS
Montana
North Carolina
North Dakota
Nebraska
New Mexico
Nevada
Oklahoma
South Carolina
South Dakota
- Bennett County, SD
- Buffalo County, SD
- Corson County, SD
- Mellette County, SD
- Oglala Lakota, SD
- Shannon County, SD
- Todd County, SD
- Ziebach County, SD
Tennessee
Texas
- Brooks County, TX
- Crosby County, TX
- Culberson County, TX
- Hall County, TX
- Hudspeth County, TX
- Motley County, TX
- Sabine County, TX
- Zavala County, TX
Utah
Virginia
Vermont
Wisconsin
West Virginia
But what if the property you’re seeking to qualify for is not in one of those counties? Here’s how you find the income limits for both the HomeReady and Home Possible programs.
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HomeReady Income Limits
HomeReady income limits are based on the average (median) income in the geographic area where the home you want to purchase is located. You can check the HomeReady income limit for your area by going to the HomeReady Income Limit Map at https://ami-lookup-tool.fanniemae.com/amilookuptool/
Type in the address you wish to include in the program. The interactive HomeReady Income Limit Map will give you the income limit you must meet (your income must be below that amount) to qualify for the HomeReady program.
For example, here I’ve done a search for 2400 Monroe Avenue Northeast, Grand Rapids, MI, USA
The results show you would need to have an income below $64,640/year to qualify for the HomeReady program.
Fannie Mae Home Possible Income Limits
Fannie Mae Home Possible income limits are also based on the average (median) income in the area where the home you want to purchase is located. Since the income limits are currently the same for both the HomeReady and Home Possible programs, you don’t need to run both, but we also wanted to show you how to check for Home Possible income limits if you wish to do that.
You can check for the Home Possible income limit amount by going to the Home Possible Income Limit Map at https://sf.freddiemac.com/working-with-us/affordable-lending/home-possible-eligibility-map
There, just like the HomeReady process, you would key in the address of the home you are wanting to include in the program, and the interactive Home Possible Income Limit Map will tell you the income limit you must meet (your income must be below that amount) to qualify as part of the Home Possible Program.
Let’s take the same house, and do a search for 2400 Monroe Ave NE, Grand Rapids, MI 49505
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The results show you would need to have an income below $64,640/year to qualify for the Home Possible program.
HomeReady vs. Home Possible
HomeReady and Home Possible are both excellent programs, each designed to provide low down payment mortgage options. Both seek to help people with lower incomes get into homes they might not otherwise be able to afford. Both allow you to
- Purchase a home with a 3% down payment
- Allow the buyer to make no direct financial contribution (so you can use a community or affordable seconds loan, a downpayment grant, a gift, or closing cost assistance grant to help you get into the home.
- Allow you to rent out part of the property and include that income in your loan application
- Allow you to buy a multi-family structure of up to 4 units through the program
- And more.
But, though they are similar, they’re not the same. A complete review of the similarities and differences between the two programs is here: https://findmywayhome.com//news/conventional-low-down-payment-purchase-refinance/
Working with an Expert
These discount mortgage programs have additional qualifying criteria that include restrictions, and waivers on standard conventional underwriting guidelines.
You will often find the most inexperienced loan officers in big-box mortgage lender call centers. These customer service people understand little to nothing about individual loan program underwriting guidelines.
A professional loan officer is more likely to understand the benefits and nuances of these incredible programs.
Find My Way Home is an Expert Network of experienced mortgage professionals, here to answer your questions, and get you accurate answers.
You can get your questions answered from an Expert Near You, or browse by State, or you can leave a comment or question below.
I answer all questions, and if needed, can introduce you to a professional, experienced loan officer that I know can help.
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