The Home Possible program is a conventional loan from Freddie Mac that helps first-time and moderate-income buyers purchase a home with as little as 3% down. It’s designed to make conventional financing more accessible while still offering competitive rates and cancellable mortgage insurance.

To qualify, you must meet Freddie Mac’s eligibility requirements:

Income limit: Your household income must be at or below 80% of the area median income (AMI) for the property’s location.

Credit score: Minimum 620 (though higher scores often get better rates).

Down payment: At least 3% of the purchase price.

Occupancy: You must live in the home as your primary residence.

You can check income limits by ZIP code using Freddie Mac’s Home Possible Eligibility Tool.

While both programs make homeownership more accessible, they have key differences:

Home Possible is a conventional loan, not government-insured.

It allows for cancellable mortgage insurance (PMI) once you reach 20% equity.

FHA loans have stricter property standards and lifetime MIP (for most borrowers).

FHA works better for lower credit; Home Possible often benefits those with moderate income but stronger credit.

Only 3% down is required. Funds can come from:

Your own savings

Gift funds from family or employer

Down payment assistance programs available in Texas

Yes. The program allows both rate-and-term and no cash-out refinances for eligible borrowers who currently have a Freddie Mac-owned loan.

You can use a Home Possible loan to buy:

Single-family homes

Townhomes

Condominiums (that meet conventional approval standards)

2–4 unit properties (if you occupy one unit as your primary residence)

Manufactured homes may qualify with additional conditions.

Yes, but unlike FHA loans, PMI on Home Possible loans can be removed once you reach 20% equity.
This is a major advantage because it helps reduce your long-term monthly cost.

Not always. Home Possible is available to both first-time and repeat buyers — as long as income and occupancy requirements are met.

(Tip: Freddie Mac defines a first-time buyer as anyone who hasn’t owned a home in the past three years.)

Home Possible is especially helpful for Texas buyers who:

Have stable income but limited savings

Want to avoid FHA’s lifetime MIP

Are purchasing in growing metro areas like Dallas, Austin, or Houston, where property values rise quickly, allowing faster PMI removal

Absolutely. You can pair Home Possible with Texas down payment assistance or closing cost grants such as:

TSAHC (Texas State Affordable Housing Corporation)

TDHCA (Texas Department of Housing & Community Affairs)

I can help determine which programs can be layered with Freddie Mac’s guidelines.

Most Home Possible loans in Texas close within 25–30 days, depending on appraisal and documentation. Having a pre-approval in place helps speed up the process.

Yes, at least one borrower must complete an approved homebuyer education course (available online through Freddie Mac).
It’s quick, affordable, and provides helpful insights for first-time homeowners.