HomeOne®

The HomeOne® loan from Freddie Mac helps first-time buyers with just 3% down and no income limits. It offers flexible financing to make owning your first home easier, wherever you choose to buy.

Here are the key features, benefits, and requirements:

FEATURES

Low Down Payment:

Borrowers can make a down payment as low as 3% of the home’s purchase price, which can help reduce the initial cash outlay required to buy a home.

No Income or Geographic Limits:

There are no restrictions on borrower income or property location, making the program widely accessible.

Private Mortgage Insurance (PMI):

PMI is required for down payments under 20%, protecting lenders while allowing lower down payments.

Credit Score Flexibility:

While specific credit score requirements can vary, HomeOne® mortgages generally have more flexible credit guidelines compared to traditional conventional loans. This can make it easier for borrowers with less-than-perfect credit to qualify.

Educational Requirements:

Borrowers are required to complete an online homeownership course called Framework to help them understand the responsibilities and financial implications of homeownership.

Higher Debt-to-Income Ratio Allowed:

Borrowers can have a debt-to-income ratio up to 45%, accommodating more financial situations.

Use as Primary Residence:

The property financed with a HomeOne® mortgage must be used as the borrower’s primary residence, meaning it cannot be used for investment or rental purposes.

BENEFITS

Access to Homeownership:

Makes homeownership more accessible by reducing the initial cash outlay required to purchase a home.

Lower Mortgage Insurance Costs:

Helps reduce monthly housing costs by offering potentially lower PMI premiums compared to other conventional loans.

Flexible Income Considerations:

Recognizes income from non-borrower household members, which can help borrowers qualify for higher loan amounts.

Wide Accessibility:

No income or location limits mean more people can qualify regardless of where they live or earn.

Educational Support:

Requires completion of a homeownership education course, which can empower borrowers with knowledge and confidence throughout the home-buying process.

REQUIREMENTS

First-Time Homebuyer:

At least one borrower must not have owned a home in the past three years.

Income Limits:

Borrowers must meet income limits, which vary depending on the location of the property and the number of people living in the household. These limits are based on the area’s median income and are designed to target low to moderate-income borrowers.

Credit Score:

Generally requires a credit score of at least 620. However, specific lenders may have their own credit score requirements.

Debt-to-Income Ratio:

Typically allows a maximum debt-to-income (DTI) ratio of up to 45%, though this can vary based on the lender and other factors.

Homeownership Education:

Completion of an online homeownership education course is mandatory for all borrowers. This course covers topics such as budgeting, mortgage financing, and home maintenance.

Occupancy Requirement:

The property must be used as the borrower’s primary residence.

Property Eligibility:

The property being purchased must meet Fannie Mae’s eligibility requirements, which generally include standard appraisal and condition guidelines.

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Disclaimer

Loans are subject to credit approval. Terms and conditions apply. VA loans are available to eligible veterans, active-duty service members, and certain spouses. USDA loans are available for properties located in eligible rural areas and are subject to income limits. FHA loans require mortgage insurance premiums and have specific eligibility requirements. Conventional loans typically require a down payment and private mortgage insurance (PMI) if the down payment is less than 20% of the home's purchase price. 0 down conventional loans are subject to lender approval and may have stricter credit and income requirements. Borrowers should consult with a mortgage specialist to determine eligibility and explore all available loan options.