3% down. Your door to Texas homeownership.

HomeReady is a conventional loan backed by Fannie Mae that's built for low-to-moderate income buyers. It only requires 3% down, has lower mortgage insurance compared to most loans, and gives you some flexibility with income - like using household income or even rental income from something like an ADU. You can use it to buy a home or do a limited cash-out refinance.

The income limit is usually 80% of the area's median income and it's based on where the property is located. Some areas in Texas don't have income limits at all, depending on the census tract. The numbers can vary a lot depending on the city - Houston, Dallas, Austin, San Antonio, and rural areas all look different. We can easily check this for you based on the address.

They are very similar programs - HomeReady is through Fannie Mae, and Home Possible is through Freddie Mac. They both have lower PMI and are both only 3% down. The main difference is this: HomeReady goes down to a 620 credit score and lets you use household income, while Home Possible usually starts at 660 but gives a bit more flexibility with property types and even allows sweat equity in some cases.

Yes, absolutely. Both programs work with Texas DPA options like TSAHC, TDHCA, and Chenoa. When you combine those with the 3% down, a lot of buyers end up bringing very little - sometimes almost nothing - out of pocket.

No, you don't. The HomeReady and Home Possible programs are open to both first-time buyers and repeat buyers, as long as you meet the income limits and plan to live in the home. If you are a first-time buyer with low income, you may qualify for a Fannie Mae lender credit of $2,500.

For HomeReady, you'll need at least a 620. Most transactions for Home Possible require a score of 660. The higher your score, the better your rate and mortgage insurance will look. In some cases, if you don't have traditional credit, we may still be able to qualify you using alternative credit under certain guidelines.

Yes, if you are putting less than 20% down. But the good news is that with HomeReady and Home Possible, the PMI is lower than standard conventional loans. Once you reach 20% equity, your PMI can be canceled, which is something that you cannot do with FHA because your mortgage insurance typically last the life of the loan.

There is a $2,500 credit available through Fannie Mae for first-time buyers who meet certain income limits (usually at or below 50% of the area median income). You can use it toward your down payment, closing costs, or other expenses. Its currently available on eligible HomeReady purchase loans through February 2027.