HomeReady in Michigan: check the address, income, and total cost

HomeReady is a Fannie Mae conventional mortgage option for eligible borrowers with income at or below 80% of area median income for the property location. Down payments can be as low as 3%. Use Fannie Mae’s address-based AMI lookup rather than assuming one income limit covers all of Wayne County or Michigan.

Important information

Program rules, limits, rates, fees, and eligibility can change; confirm them with the relevant agency and a licensed mortgage professional before relying on this information.

Official program references checked November 14, 2026. This is educational guidance, not a loan approval or a rate quote. Program rules change; confirm current requirements with the agency and your loan officer.

Primary references

Key considerations

As low as 3% down for eligible transactions. Ask whether the property and underwriting path qualify for that option rather than assuming every HomeReady loan allows it.
On a one-unit home, Fannie Mae generally requires no minimum contribution from the borrower’s own funds. Gifts, grants, and Community Seconds are permitted sources under the program rules. That does not eliminate the required down payment or closing costs.
The product matrix has specific funding exceptions, including sweat equity and lender grants. Ask the lender to document the source and confirm any contribution requirement before arranging funds.
Fannie Mae lists reduced mortgage-insurance coverage of 25% for LTV 90.01–97%. This is insurer coverage—not a 25% borrower premium or down payment. Mortgage insurance may be cancellable, with restrictions.

Eligibility and questions to review

Check the property address in Fannie Mae’s official AMI lookup and confirm that qualifying income is at or below the program’s 80% limit.
Discuss whether the home will be your principal residence and whether its property type and unit count meet the applicable requirements.
Have the lender review credit, debts, income documentation, reserves if required, and all proposed gift, grant, or subordinate financing sources.
Homebuyer education is typically required. If all occupying borrowers are first-time buyers, at least one must complete qualifying homeownership education or meet the permitted counseling alternative, regardless of LTV. Confirm the current requirement and keep the completion documentation.
Request a written comparison of the payment, cash to close, and mortgage insurance against other eligible conventional or FHA options.

Documents to prepare

Photo identification and the income documents the lender requests for your employment or income type
Asset statements showing savings and the source of down-payment and closing funds
Information about debts, housing history, and any other real estate you own
The purchase agreement and property address once you have selected a home
Gift or assistance documentation, and an education certificate when the selected program requires one

Typical process milestones

Compare options before choosing a loan: Review income, debts, savings, the property, and the written loan terms with a loan officer.
Prepare the file: Provide the requested documents and explain gifts, assistance, or changes in employment. An initial review is not final approval.
Complete property and underwriting review: The lender reviews the application, valuation, title, and any outstanding conditions. Timing depends on the file.
Review the closing figures: Confirm cash to close, insurance, taxes, and any assistance repayment terms before signing. Closing depends on all required conditions being met.

Current limits and program details

The income test is at or below 80% of area median income for the property location. It is an income-eligibility test, not a home-price limit or an approval amount. Confirm current AMI in Fannie Mae’s lookup and ask the lender which income must be counted. Availability depends on the borrower, property, occupancy, credit, documentation, and applicable underwriting rules.

Talk through your Michigan purchase

Tell Sonic Loans® about your income, savings, and the property you are considering. Ask for a comparison of eligible programs and written cost estimates before choosing.

Talk through your Michigan purchase

Frequently asked questions

Is there a single HomeReady income limit for Wayne County?

Do not assume there is. Use Fannie Mae’s official AMI lookup for the property location and confirm the current limit with the lender. This guide intentionally does not publish an unsupported county-wide dollar figure.

Can family gifts cover my down payment?

Gifts can be an eligible source under Fannie Mae’s rules. For a one-unit property, there is generally no minimum own-funds contribution, but the lender must verify the source and any applicable exception. You still need to meet the down-payment and closing-cost requirements.

Does 25% mortgage-insurance coverage mean I pay 25%?

No. Fannie Mae’s matrix specifies 25% insurance coverage at LTV 90.01–97%; it does not set your premium at 25%. Ask for the actual mortgage-insurance cost and the conditions for cancellation on your loan.

Must I be a first-time buyer?

HomeReady can serve eligible first-time or repeat buyers. Education rules depend on the borrowers and the transaction; if all occupying borrowers are first-time buyers, at least one generally needs qualifying education or the permitted counseling alternative. Confirm current Fannie Mae requirements with your loan officer.

Compare Michigan purchase options

Michigan FHA guide · Michigan first-time buyer guide · Michigan HomeReady guide

By Charlie Shami · NMLS #1097497