The HomeReady® mortgage is a Fannie Mae conventional loan program created to help low- to moderate-income homebuyers qualify more easily for a home.
It allows as little as 3% down, flexible credit guidelines, and reduced mortgage insurance costs — making it one of the most affordable conventional loan options available in Texas.

You may qualify if you:

Plan to occupy the home as your primary residence

Have an income at or below 80% of the area median income (AMI) for your ZIP code

Have a credit score of 620 or higher (higher scores may receive better pricing)

Can provide a 3% down payment (which may be a gift)

Complete a homebuyer education course (if all borrowers are first-time buyers)

You can check your local income limits with Fannie Mae’s HomeReady Eligibility Tool.

Low 3% down payment

Reduced PMI costs (lower than standard conventional loans)

PMI cancellation once you reach 20% equity

Flexible income sources — including household or non-borrower income in some cases

Down-payment and closing-cost assistance programs allowed

Competitive interest rates for qualifying borrowers

Down Payment: HomeReady is 3% vs. 3.5% for FHA.

Mortgage Insurance: HomeReady's can be canceled at 20% equity, while FHA's is permanent for most borrowers.

Credit Score Minimum: HomeReady requires a 620, while FHA requires a 580.

Loan Type: HomeReady is a Conventional (Fannie Mae) loan, while FHA is Government-backed (HUD/FHA).

Property Type: HomeReady allows for 1–4 units, condos, and townhomes, while FHA allows for 1–4 units, condos and townhomes but has stricter property rules.

Yes, 100% of your down payment and closing costs may come from:

Gift funds from family or employer

Local or state assistance programs such as TSAHC or TDHCA in Texas

Community grants or non-profit contributions

You can use a HomeReady® loan to purchase or refinance:

Single-family homes

Townhomes or condos

2–4 unit properties (if you occupy one unit)

Planned-unit developments (PUDs)
The property must be your primary residence.

Yes, but at reduced rates compared to standard conventional loans.
Best of all, PMI can be removed once you reach 20% equity or 80% loan-to-value, unlike FHA loans where insurance is typically for the life of the loan.

A minimum 620 credit score is required, though higher scores generally qualify for better rates and lower PMI.
Borrowers with thin or limited credit histories may qualify using alternative credit sources such as rent or utility payments.

At least one borrower must complete a HUD-approved homebuyer education course, usually online through Framework® or another Fannie Mae–approved provider.
It’s inexpensive (about $75) and provides helpful budgeting and ownership tips.

Yes, HomeReady® allows rate-and-term refinances for borrowers who meet income and occupancy requirements.
You can replace an existing loan with a lower-rate HomeReady® mortgage to save on monthly payments.

Yes, the loan limits follow Fannie Mae’s conforming limits, which in 2025 are:

$766,550 for most Texas counties

Higher limits in select high-cost areas (e.g., parts of Austin, Dallas, and Houston MSAs)

Yes. HomeReady® allows non-occupant co-borrowers (such as parents) to help strengthen your application, provided income and credit meet program guidelines.

Absolutely. You can layer HomeReady® with Texas down-payment assistance or grant programs such as:

TSAHC Home Sweet Texas

TDHCA My First Texas Home

SETH 5 Star Texas Advantage

I can help determine which combination maximizes your benefit.

Both programs are nearly identical, but:

HomeReady® is from Fannie Mae

Home Possible® is from Freddie Mac
Minor differences exist in income calculation and co-borrower rules, but both are excellent options for first-time or moderate-income buyers in Texas.

Most loans close in 25–35 days, depending on appraisal and document turnaround.
Working with a Texas-based lender familiar with HomeReady® guidelines can speed up the process.