What Is a HomeOne® Mortgage?
The HomeOne® Mortgage is a 3% downpayment mortgage backed by Freddie Mac. It's a low-downpayment conventional loan for first-time home buyers with decent credit.
HomeOne® allows buyers to finance up to 97% loan-to-value (LTV) with no income or geographical restrictions.
Key Facts at a Glance
| Requirement | HomeOne® Program Details |
|---|---|
| Minimum Credit Score | 620 |
| Minimum Down Payment | 3% |
| Income Limits | None |
| First-Time Buyer | At least one borrower |
| Occupancy | Primary residences only |
| Mortgage Insurance | Required with less than 20% down, cancellable at 20% equity |
Key Definitions
- First-Time Home Buyer
- A person who has not owned any residential property in the last 36 months. At least one borrower on a HomeOne® mortgage application must meet this definition.
- Loan-to-Value (LTV)
- The percentage of your home's value that you're borrowing. HomeOne® allows up to 97% LTV with 3% down.
- Private Mortgage Insurance (PMI)
- An insurance policy paid by the homeowner to protect the lender from loss. PMI is required until 20% equity is achieved. Then, it can be canceled.
- Debt-to-Income Ratio (DTI)
- The percentage of your income that goes toward debt payments. Freddie Mac sets maximum DTI rules for HomeOne® borrowers.
- Conforming Loan Limit
- The maximum loan amount allowed by Freddie Mac in your county. HomeOne® must stay within conforming limits.
Who Is the HomeOne® Program For?
The HomeOne® program is built for first-time buyers who have good credit but prefer to make a low down payment on their purchase.
HomeOne® is especially useful to first-time buyers who:
- Earn too much money to use the Home Possible® affordable mortgage program
- Want a no-frills 3% down option with standard conventional terms
- Will likely buy a home not within a low-income census tract
HomeOne® is Freddie Mac's version of Fannie Mae's Conventional 97 — a similar low-downpayment mortgage for first-time buyers.
HomeOne® Loan Benefits
HomeOne® gives first-time buyers pathways to buy with 3% down, unlike other conventional loans that ask for bigger down payments and require more rules.
| HomeOne® Feature | How It Helps You |
|---|---|
| Low 3% Down Payment | Smaller upfront cost for first-time buyers. |
| No Income Limits | Anyone may apply, no income cap. |
| No Geographic Restrictions | Available everywhere, no location rules. |
| Flexible Funding Sources | Use savings, gifts, or grants for your down payment. |
| Cancellable Mortgage Insurance | Drop PMI at 20% equity to lower payments. |
| Standard Conventional Terms | Simple, predictable loan terms. |
HomeOne® Loan Requirements
To get a HomeOne® mortgage, you and the home you want to purchase must meet Freddie Mac program guidelines.
Must Be A First-Time Home Buyer
At least one person on the HomeOne® mortgage application needs to be a first-time home buyer. This means that person has not owned a home in the past three years.
Must Have A 620 Credit Score or Higher
HomeOne® requires a minimum credit score of 620 . Lenders use this score to help decide if you qualify.
Must Make a 3% Downpayment Or More
You need to make a down payment of at least 3%. This money may come from your own savings, a gift from family, or down payment assistance.
Must Occupy The Property
The home must be your main residence. HomeOne® does not allow second homes or investment properties.
Must Finance With A Fixed-Rate Mortgage
HomeOne® is only available for fixed-rate mortgages. 30-year and 15-year terms are available. Adjustable-rate mortgages (ARMs) are not allowed.
Must Complete Approved Homeownership Education
If everyone listed on the mortgage application is a qualified first-time home buyer, everyone must also complete an approved homeownership education course prior to closing.
Comparing HomeOne®, FHA, and Home Possible®
When shopping for a low-down-payment loan, HomeOne® is often compared with FHA and Home Possible®. Here are the key differences:
| Feature | HomeOne® | Home Possible® | FHA Loan |
|---|---|---|---|
| Minimum Down Payment | 3% | 3% | 3.5% |
| Credit Score Minimum | 620 | 620 | 580 |
| Mortgage Insurance | Cancellable at 20% equity | Cancellable at 20% equity | MIP for life |
| Income Limits | None | 80% of Area Median Income | None |
| Geographic Limits | None | Some census tract exceptions | None |
| First-Time Buyer Only | Yes | No | No |
Solutions for Your Homeownership Journey
I'm not a first-time home buyer
HomeOne® is only for first-time buyers. If you don't qualify, consider these options:
| Alternative Program | First-Time Buyer Requirement | Credit Score | Down Payment |
|---|---|---|---|
| HomeReady | No | 620 | 3% |
| Home Possible | No | 620 | 3% |
| FHA Loan | No | 580 | 3.5% |
| Standard Conventional | No | 620 | 5%+ |
My credit score is below 620
If your credit score is below 620 , FHA loans may be your better low-downpayment option. See our HomeOne® vs FHA comparison for details.
I don't have money for a down payment
Pair HomeOne® with down payment assistance or use gift funds to cover the full 3% minimum. Learn more in our HomeOne® down payment and closing costs guide.
HomeOne®: Key Opportunities and Benefits
- Buy with just 3% down and no income restrictions.
- Cancel PMI once you've built 20% equity.
- Use gift funds or assistance for your entire down payment.
- Access conventional loan terms without geographic limits.
- Compare favorably against FHA and Home Possible® for many buyers.
Frequently Asked Questions
What is a HomeOne® mortgage?
A conventional loan from Freddie Mac that allows first-time buyers to purchase a home with as little as 3% down.
Who qualifies for HomeOne®?
At least one borrower must be a first-time home buyer with a minimum 620 credit score and the ability to make a 3% down payment.
Are there income limits for HomeOne®?
No. Unlike Home Possible®, HomeOne® has no income restrictions and no geographic limitations.
Can I use gift funds for the down payment?
Yes, the full 3% down payment can come from gifts or down payment assistance programs.
Is PMI required on HomeOne® loans?
Yes, PMI is required with less than 20% down, but it can be cancelled once you reach 20% equity.
About the Author
Dan Green
20-year Mortgage Expert
Dan Green is a mortgage expert with over 20 years of direct mortgage experience. He has helped millions of homebuyers navigate their mortgages and is regularly cited by the press for his mortgage insights. Dan combines deep industry knowledge with clear, practical guidance to help buyers make informed decisions about their home financing.
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