A casita across town
What if the casita didn't have to be in your backyard? Plenty of Texas families would love a little house out back for Mom, or for a grown son or daughter who needs a place close by. Most lots don't come with one. This rule gets you surprisingly near: for the loan, the home across town can count the way the one out back would. (Separate front door, same family.)
The name sounds like a loan programme, but it's really one line in Fannie Mae's rulebook. Normally, a home you buy and don't live in is an investment property. Fannie Mae's Selling Guide, section B2-1.1-01, makes two exceptions: a parent or legal guardian buying a home for an adult child with a disability, and an adult child buying a home for a parent. In both, you're treated as the owner-occupant, as long as your family member is unable to work or doesn't have enough income to qualify for a mortgage on their own.
That single change is the whole benefit. The loan is sized and priced as a primary residence, not a rental. A made-up example: on a $300,000 home, 5% down is $15,000, while 15% down on an investment property is $45,000.
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Tell us who'll live there
Share who the home is for and why buying alone isn't working for them.
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Look at their income together
The rule turns on whether they're able to work or earn enough to qualify.
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Get pre-approved yourself
You're the borrower, so your income and credit carry the file.
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Choose the home
Pick the place that suits your family member's life and budget.
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Close and hand over the keys
They move in, and you've bought it on owner-occupied terms.
Who the casita plan suits
Good fit
- A parent or legal guardian buying a home for an adult son or daughter with a disability who is unable to work or doesn't earn enough to qualify.
- An adult child buying a home for a parent who is unable to work or doesn't have enough income to qualify.
- A family that would rather put less down and keep cash for moving, repairs or savings.
- A buyer who wants to keep their own home and have family close by (close enough for Sunday lunch, ideally).
Another loan may serve you better
- If the home is a rental for someone outside these two cases, a DSCR loan in Texas or an investment-property loan is the better fit.
- If your family member can qualify on their own income, a loan in their own name may be simpler, and we can talk through how you might help.
- If the home is for a college student, ask us about the options, since this Fannie Mae rule names parents and adult children with a disability.
Buying a home for family? Let's talk.
Tell us who the casita's for and what's in the way, and we'll look at the options with you.
What counting it as your home is worth
Down payment. Fannie Mae's Eligibility Matrix allows as little as 5% down on a one-unit primary residence. Buy the same home as an investment property and the matrix asks for 15% down. Under the Family Opportunity rule, the home your family member lives in counts as your primary residence, so the smaller figure is in reach.
Pricing. Fannie Mae's Selling Guide says a loan-level price adjustment applies to all loans secured by an investment property. A primary-residence loan doesn't carry that charge. Your own pricing is set on your file, and today's rates are shown on this page.
Your own home. You don't live in the new home, and you can keep the one you live in now. Fannie Mae treats you as the owner-occupant because your parent or adult child lives there. (Your own porch stays your porch.)
What this means for you: the cash it takes to buy the same home can drop to a third. For a lot of families, that turns "someday" into a real plan.
The Texas fine print: taxes and income
Property taxes. The Texas Comptroller says the general residence homestead exemption goes to someone who has an ownership interest in the home and uses it as their principal residence. When you own the home and your family member lives in it, nobody on the deed lives there, so plan the property-tax line without that exemption. (Ask any Texan about property taxes and pull up a chair. It'll be a while.)
The family member's income. Everything turns on one question: is your parent or adult child able to work, or earn enough to qualify on their own? Every family's paperwork looks a little different, so we'll talk it through with you and work out together what your file needs.
Family in Florida too? We also cover the Family Opportunity Mortgage in Florida.
What this means for you: get the tax line and the income question settled early, and the rest of the purchase works like buying your own home.
Nobody should have to pick between keeping their own home and having family close enough to check on. The casita doesn't have to be out back. It just has to be home to someone you love.
Questions people ask
What is a Family Opportunity Mortgage?
It's a name for a Fannie Mae rule, not a separate loan. Section B2-1.1-01 of Fannie Mae's Selling Guide treats a parent or legal guardian buying for an adult child with a disability, or an adult child buying for a parent, as the owner-occupant. The home is financed as your primary residence even though your family member is the one living there.
Who qualifies for a Family Opportunity Mortgage in Texas?
Two cases are named: a parent or legal guardian buying for an adult child with a disability, and an adult child buying for a parent. In both, the family member who'll live there is unable to work or doesn't have enough income to qualify for a mortgage on their own. You, the buyer, qualify on your own income and credit.
How much is the down payment?
Fannie Mae's Eligibility Matrix allows as little as 5% down on a one-unit primary residence, against 15% on a one-unit investment property. Because this rule counts the home as your primary residence, the smaller figure is the starting point. On a made-up $300,000 home, that's $15,000 instead of $45,000.
Do I have to live in the home?
No. Your parent or adult child lives there, and Fannie Mae treats you as the owner-occupant. You keep living in your own home, porch and all.
Can I use it to buy a home for my college student?
Fannie Mae's rule names a parent buying for an adult child with a disability, and an adult child buying for a parent. A student who doesn't fit those cases is outside it, but there are other ways to help a child buy, and we're glad to talk through them with you.
Is it cheaper than an investment-property loan?
It usually takes less cash: as little as 5% down on a one-unit home against 15% for an investment property, under Fannie Mae's Eligibility Matrix. Fannie Mae also adds a price adjustment to every investment-property loan, and a primary-residence loan doesn't carry it. Your own pricing depends on your file.
Does the Texas homestead exemption apply?
The Texas Comptroller says the general residence homestead exemption goes to someone who owns the home and uses it as their principal residence. If you own it and your family member lives there, plan the property taxes without that exemption.
