Most first-time buyers in South Florida have heard of FHA loans - the 3.5% down program with flexible credit requirements. Fewer have heard of HomeReady, which is Fannie Mae's answer to the same problem. For buyers who meet the income limits and have credit above 620, HomeReady is usually the smarter choice. Lower mortgage insurance, cancellable PMI, and slightly better interest rates over what FHA offers.
This guide covers what HomeReady is, who qualifies in Miami-Dade and Broward, how it compares to FHA side by side, and when it makes more sense than other low-down programs.
What Is the HomeReady Program?
HomeReady is a conventional mortgage program from Fannie Mae - one of the two government-sponsored enterprises that back most conventional mortgages in the U.S. It launched as an update to Fannie's older Community Homebuyers Program, with more flexible guidelines designed for buyers in underserved markets.
The core features:
- 3% down payment for primary residences (single-family homes, condos, 2-4 unit properties)
- Income limit: Borrower income must be at or below 80% of Area Median Income for the property location
- Reduced PMI rates compared to standard conventional loans at the same down payment
- Cancellable PMI when equity reaches 20% - by request or automatically at 22%
- Boarder income allowed - up to 30% of qualifying income can come from a paying household member
- Homeownership education required for first-time buyers (Framework or equivalent, about $75)
HomeReady Income Limits in South Florida 2026
The income limit for HomeReady is 80% of the Area Median Income (AMI) for the county where the property is located. Unlike USDA, which counts all household members' income, HomeReady counts only the borrowers on the loan.
Approximate 80% AMI figures for South Florida metro in 2026:
| Household Size | ~80% AMI (Miami-Fort Lauderdale MSA) |
|---|---|
| 1 person | ~$61,600 |
| 2 people | ~$70,400 |
| 3 people | ~$79,200 |
| 4 people | ~$88,000 |
| 5 people | ~$95,040 |
| 6 people | ~$102,080 |
These figures are approximations - official limits are published by FHFA and updated periodically. The HomeReady lookup tool at Fannie Mae's website (fanniemae.com) lets you check eligibility for a specific address and income combination. The income limit applies to borrowers on the loan only, not to everyone living in the home.
HomeReady vs. FHA in Miami - Side by Side
Both programs serve buyers who cannot put 20% down. Here is where they differ:
| Feature | HomeReady | FHA |
|---|---|---|
| Minimum down payment | 3% | 3.5% (580+ credit) |
| Minimum credit score | 620 (typical) | 580 |
| Income limit | 80% AMI | None |
| Upfront insurance cost | None | 1.75% MIP upfront |
| Annual insurance | Lower PMI (reduced rate) | 0.55%-0.85% MIP |
| Insurance cancellation | Yes - at 20% equity | No (typically permanent <10% down) |
| Non-warrantable condos | No | No (FHA-approved buildings only) |
| Multi-unit properties | Yes (2-4 units) | Yes (2-4 units) |
| Boarder income | Up to 30% of income | Limited |
| Education requirement | Yes (first-time buyers) | No |
The headline takeaway: if your credit is 620 or above and your income falls within the 80% AMI limit, HomeReady almost always costs less than FHA over the life of the loan. The monthly payment might be similar or marginally higher (because of the slightly larger down payment and no upfront MIP), but the disappearing PMI makes HomeReady substantially cheaper long-term.
Who HomeReady Is Actually For in Miami
HomeReady was built with a specific buyer profile in mind. In South Florida, that profile shows up frequently:
- Moderate-income earners in expensive markets: A teacher, nurse, or young professional earning $75,000 a year in Miami still needs a low-down program to buy. HomeReady was built for exactly this situation.
- Multi-generational households: Miami has a high rate of multi-generational living. HomeReady allows boarder income to count, which is useful when a parent, sibling, or roommate pays rent but is not on the loan.
- First-time buyers with good credit: Buyers who have been diligent about their credit but have not accumulated a large down payment. If your credit is above 620 and your income qualifies, HomeReady gives you better terms than FHA.
- Buyers purchasing in designated low-income census tracts: In certain high-opportunity census tracts, the income limit may not apply or may be higher. This is worth checking for properties in parts of Miami-Dade where Census tract income levels are below the standard 80% AMI threshold.
HomeReady is not a fit for everyone. If your income is above the 80% AMI limit, you need a different conventional program. If your credit is below 620, FHA or another program may be more accessible. And if you are buying an investment property or second home, HomeReady does not apply - it is for primary residences only.
Condo Purchases with HomeReady in Miami
HomeReady works for condominiums, but the building must be on Fannie Mae's approved project list (warrantable). In Miami, where a significant portion of the housing stock is condos, this matters. Buildings with high investor concentration, pending litigation, or delinquent HOA dues typically do not make the warrantable list.
Before going under contract on a condo, we pull the project approval status. If the building is non-warrantable, HomeReady and standard conventional financing are off the table - you would need a portfolio or non-warrantable condo loan, which has different terms. We catch this early so you do not have a financing problem after you have already committed to a property.
The Homeownership Education Requirement
First-time buyers using HomeReady must complete a homeownership education course before closing. The most common option is the Framework Homeownership course, which is available online at frameworkhomeownership.org. It takes about four to six hours to complete and costs $75.
The course covers budgeting, the home-buying process, mortgage basics, and maintaining a home. It is genuinely useful - not just a checkbox requirement. Fannie Mae has data showing that HomeReady borrowers who completed the course had lower delinquency rates, which is part of why the program exists.
Repeat buyers - those who have owned a home before - are not required to complete the course, though it is available to anyone who wants it.
Check Your HomeReady Eligibility
Income limits, property location, and credit score all factor in. Let us run the numbers for your specific situation.
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HomeReady with Down Payment Assistance
HomeReady can be combined with certain down payment assistance (DPA) programs to reduce cash needed at closing. Florida Housing Finance Corporation offers DPA programs that can be layered with conventional loans, including HomeReady-eligible properties.
The specific DPA programs available depend on your income, credit score, purchase price, and county. Some provide forgivable grants; others are second mortgages with deferred payment. When HomeReady and DPA are combined, it is possible to close with very little out-of-pocket cash beyond standard closing costs.
Not all lenders offer every DPA program. We work with multiple Florida Housing-approved programs and can tell you what combination makes the most sense for your situation.
Frequently Asked Questions
Lifetime Capital Funding LLC. NMLS #2583712. Equal Housing Lender. HomeReady is a registered trademark of Fannie Mae. All loan programs are subject to credit approval, income verification, and property qualification. Income limits are subject to annual change and vary by county. Rates and terms vary. Not a commitment to lend.