A MTJ in an MRAM array is disclosed with a composite free layer having a lower crystalline layer contacting a tunnel barrier and an upper amorphous NiFeX layer for improved bit switching performance. The crystalline layer is Fe, Ni, or FeB with a thickness of at least 6 Angstroms which affords a high magnetoresistive ratio. The X element in the NiFeX layer is Mg, Hf, Zr, Nb, or Ta with a content of 5 to 30 atomic %. NiFeX thickness is preferably between 20 to 40 Angstroms to substantially reduce bit line switching current and number of shorted bits. In an alternative embodiment, the crystalline layer may be a Fe/NiFe bilayer. Optionally, the amorphous layer may have a NiFeM1/NiFeM2 configuration where M1 and M2 are Mg, Hf, Zr, Nb, or Ta, and M1 is unequal to M2. Annealing at 300° C. to 360° C. provides a high magnetoresistive ratio of about 150%.