We help California’s first-time and low-to-moderate-income homebuyers achieve the dream of homeownership through HomeReady® and Home Possible® loans. These programs — backed by Fannie Mae and Freddie Mac — make it easier to qualify for a mortgage, secure lower down payments, and enjoy reduced mortgage insurance costs without sacrificing stability or affordability.
HomeReady® and Home Possible® Loans in California
About
What Are HomeReady® and Home Possible® Loans?
HomeReady® (by Fannie Mae) and Home Possible® (by Freddie Mac) are conventional loan programs designed to help more people become homeowners with flexible credit requirements and low down payments starting at just 3%. They’re perfect for first-time buyers, single-income households, and families looking for affordable home financing options backed by trusted government-sponsored enterprises (GSEs).
Eligibility Criteria
Who Is Eligible for a HomeReady® or Home Possible® Loan in California?
You may qualify for one of these affordable home loan programs if you meet the following requirements:
- Credit Score: Minimum 620+ (higher scores may unlock better rates).
- Down Payment: As low as 3% of the home price.
- Income Limits: Household income must be within 80% of the area median income (AMI).
- Occupancy: The property must be your primary residence.
- Homebuyer Education: Completion of an approved online homebuyer course required for first-time buyers.
- Co-Borrowers: Non-occupant co-borrowers (like parents) may help you qualify.
Benefits
Benefits of HomeReady® and Home Possible® Loans
Low Down Payment
Buy your home with just 3% down.
Reduced Mortgage Insurance (PMI)
Lower monthly costs than FHA loans.
Flexible Credit Requirements
Designed for buyers with limited credit history.
Stable, Fixed Rates
Predictable monthly payments that fit your budget.
Down Payment Assistance Friendly
Combine with grants or assistance programs.
Co-Borrower Options
Qualify with help from family members.
Types
Types of HomeReady® and Home Possible® Loans We Offer
HomeReady® Loan
Best For: Buyers needing flexible credit and low down payment
Highlights: Backed by Fannie Mae with 3% down and reduced PMI
Home Possible® Loan
Best For: Low-to-moderate-income buyers
Highlights: Backed by Freddie Mac, ideal for first-time buyers
Refinance Option
Best For: Current homeowners
Highlights: Lower your rate and reduce PMI with program-specific refinancing
Comparison
HomeReady® / Home Possible® vs. FHA Loan
HomeReady® / Home Possible®
- Down Payment: 3%
- Credit Score: 620+
- Mortgage Insurance: Reduced and removable
- Loan Type: Conventional
- Income Limits: Yes (80% AMI)
- Property Type: Primary residence
FHA Loan
- Down Payment: 3.5%
- Credit Score: 580+
- Mortgage Insurance: Required for life of loan
- Loan Type: Government-backed
- Income Limits: No limits
- Property Type: Primary residence only
FAQs
Frequently
Asked Questions
Still have a question?
JLLendingTeam: A collaborative group specializing in providing tailored lending solutions and financial support for clients.
Can I use gift funds for my down payment?
Yes! Both programs allow gift funds or grants to cover part or all of your down payment.
Do I have to be a first-time homebuyer?
No. You don’t have to be a first-time buyer, but these programs are most beneficial for first-timers.
Can I use these loans for condos or multi-unit homes?
Yes, eligible condos and 2–4 unit primary residences can qualify.
How is mortgage insurance handled?
You’ll pay private mortgage insurance (PMI) initially, but it can be removed once you reach 20% equity.
Still have a question?
JLLendingTeam: A collaborative group specializing in providing tailored lending solutions and financial support for clients.
JL Lending Team
Why Choose Us for HomeReady® or Home Possible® Loan?
Local Experts
Serving California’s veterans with deep knowledge of the state’s housing market.
Fast, Tech-Enabled Process
Apply, upload documents, and track your loan online.
Personalized Guidance
We’re not tied to one lender — we find the best loan for you.
Contact Us
Ready to Get Started with a HomeReady® or Home Possible® Loan?
Owning a home in California is more achievable than you think. Let JL Lending Team help you qualify for a HomeReady® or Home Possible® loan with low down payments and affordable monthly costs.
Start today and make your dream of homeownership a reality.