Freddie Mac's HomeOne Loan

Buy a home with only 3%. Learn how.

What is a HomeOne Loan

Home Possible graphicA HomeOne Loan is a conventional loan that could be the perfect mortgage solution for many home buyers. It has attractive features such as 3% down payment, no geographic or income limits, and a more flexible debt-to-income ratio than other conventional loans.

These features, combined with the current low interest rates, make HomeOne Loans an attractive option for first time home buyers. Unlike other conventional loans which typically require a minimum of five percent down payment, HomeOne allows borrowers to put down as little as three percent without any additional costs or restrictions. This can help significantly reduce closing costs and monthly payments.

HomeOne also does not have any geographic limitations on where the loan can be used so it can be used to purchase homes in rural areas or suburban neighborhoods all across the country.

First-Time Home Buyer Requirements for a HomeOne Loan

If this loan is for the purchase of a house, at least one borrower must be a first-time buyer.

Down Payment Requirements for a HomeOne Loan

1-Unit  with a minimum 3% down payment

Competitive Interest Rates

HomeOne Mortgage offers interest rates that are often lower than other conventional loans. However, the interest rate provided to you may vary based on factors such as your credit score, job history, and other factors.

See today's interest rates

Eligible Property Types for HomeOne Loans

The HomeOne loan permits the following property types:

  • 1 unit owner occupied properties,
  • condo (Freddie Mac approved),
  • PUD (planned unit development), or
  • one unit manufactured homes (A down payment of at least 5% is required)
  • investment properties not allowed

HomeOne Loan Occupancy Requirements

The borrower must occupy the mortgaged property as a primary residence. Non-occupant co-borrowers are allowed on mortgages for 1-unit properties with a 5% down payment.

Loan Limits for a HomeOne Loan

The Possible Home program provides loans to borrowers up to the conforming loan limits for single-unit properties in the contiguous United States, ranging from $726,200 to $1,089,300.
See Conforming loan limits

Understanding PMI for HomeOne Loans

You must agree to pay private mortgage insurance (PMI) up until you have 78% or more home equity to be eligible for a HomeOne loan. The cost of this insurance is deducted from your monthly mortgage payment as a percentage of the total loan balance. When you have paid off 22% of your mortgage, your mortgage insurance will be immediately canceled. Borrowers pay mortgage insurance premiums for less than what the market will bear.
Read more about private mortgage insurance

Credit Score Requirements for HomeOne Loans

It is recommended that applicants for Freddie Mac's HomeOne loan have credit scores of at least 620 to be considered. This is due to the HomeOne loan's low minimum required down payment of just 3% of the total loan amount.

Income Limits for HomeOne Loans

Couple looking at their new homeNo income limits!

Using Gift Funds for a Down Payment on HomeOne Loans

Donations, grants, and even money from your savings might count toward the down payment and other charges associated with completing the deal.

It is recommended that you get in touch with the lender that you are dealing with in order to discover the particular requirements on gift cash.
Read more about gift funds for down payment and closing costs

HomeOne Loan Guidelines for Seller Concessions

Because of the HomeOne lending program, sellers can negotiate price reductions with prospective purchasers depending on the down payment size. If the buyer puts less than 10% of the purchase price down on the property, the seller can offer up to 3% of the sales price as a concession towards the down payment that the buyer will need to make. If the buyer makes a deposit of at least 10% of the total sales price, the seller can offer a concession of up to 6% of the total sales price. It would help if you verified with the lender you are dealing with to learn the precise standards they adhere to regarding seller concessions for HomeOne loans.

The purchase agreement should specify any sales concessions the seller is willing to make.
Read more about seller concessions

Requirements for Homebuyer Education for HomeOne Loans

If all borrowers are first-time buyers, one borrower must complete a homeownership education course before settlement.

Guidelines for Debt-to-Income Ratio for HomeOne Loans

Consider the debt-to-income (DTI) ratio guidelines when applying for a HomeOne loan. The DTI ratio compares a borrower's monthly obligations to their gross income. The Possible Home program, offered by Freddie Mac, has a maximum DTI ratio of 45%. This means your monthly obligation payments, including your proposed mortgage, cannot exceed 45% of your gross monthly income.

Remember that lenders may have specific DTI guidelines in addition to those set by the Possible Home program. Always check with your lender to ensure you meet their requirements. Additionally, having a lower DTI ratio can improve your chances of loan approval and help you get a better loan rate.
Read more about debt to income ratios

Qualifying for a HomeOne Loan with a Cosigner

Improve your chances of being accepted for a HomeOne loan by securing it with a co-signer, particularly if you have a lower credit score or earnings. A co-signer is an individual who agrees to take on the financial obligation of the loan with you and must sign all loan documents.

A co-signer must meet the same income and credit requirements as the primary borrower, but their income can be used to secure the loan. With a co-signer, the lender will consider both the borrower's and co-signer's income and credit score, increasing the chances of loan approval.

Remember that the co-signer will be equally responsible for the loan, so choose someone reliable and willing to take on this responsibility. Additionally, having a co-signer can help you get a better loan rate.


Freddie Mac's HomeOne loan is a conventional mortgage program that allows home buyers to purchase a home with just a 3% down payment. This loan offers attractive features such as no geographic or income limits, a more flexible debt-to-income ratio, and often lower interest rates than conventional loans.

The HomeOne loan can be used to purchase homes in any location in the United States, making it accessible to many borrowers. First-time home buyers are required if the loan is for the purchase of a house. The loan is available for one owner-occupied unit property, condos, PUD, or one-unit manufactured homes with a minimum down payment of 5%. The borrower must occupy the property as a primary residence, and non-occupant co-borrowers are allowed on mortgages for 1-unit properties with a 5% down payment. The program provides loans up to the conforming loan limits for single-unit properties in the contiguous United States. A credit score of at least 620 is recommended for the loan, and there are no income limits. Gift funds may be used for the down payment, and sellers can negotiate price reductions with prospective buyers depending on the down payment size.

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Frequently Asked Questions