HomeOne® Loan Requirements at a Glance
The HomeOne® mortgage is Freddie Mac's 3% down payment option for first-time buyers. To qualify, buyers must meet minimum credit score requirements, first-time home buyer rules, and property eligibility guidelines.
First-Time Home Buyer Requirement
To use a HomeOne® mortgage, at least one borrower must be a first-time home buyer.
Freddie Mac defines a first-time buyer as someone who has not owned any part of a residential property in the past 36 months. This includes partial ownership. If your name has been on the title for a home, the 36-month clock starts when you're removed from ownership or when the home is sold.
If you meet this rule, the next step is to make sure you have enough for your down payment and closing costs.
HomeOne® Eligibility by Borrower Combination
| Borrower 1 | Borrower 2 | Eligible for HomeOne®? |
|---|---|---|
| First-time buyer | No co-borrower | Yes |
| Repeat buyer | No co-borrower | No |
| First-time buyer | First-time buyer | Yes |
| First-time buyer | Repeat buyer | Yes |
| Repeat buyer | First-time buyer | Yes |
| Repeat buyer | Repeat buyer | No |
At least one borrower must be a first-time home buyer to qualify for HomeOne®.
📊 Key Statistic
Minimum Credit Score Requirements
The minimum credit score to use a HomeOne® mortgage is 620 . Borrowers with higher credit scores may qualify for lower interest rates and reduced private mortgage insurance (PMI).
Home buyers whose credit score is below 620 should consider the FHA mortgage program, which allows for credit scores starting at [conv-fha-fico-min not found] .
For buyers without a traditional credit score, lenders may accept non-traditional credit histories such as on-time rental, utility, or insurance payments. Ask your lender if this option applies to you.
Income Rules
Unlike Freddie Mac's affordable mortgage program, Home Possible®, which is aimed at low- and moderate-income households, the HomeOne® mortgage accept buyers with all incomes in all geographies.
There is no maximum income limit with the HomeOne® mortgage, however, debt-to-income ratio (DTI) must generally fall within accepted mortgage guidelines. It's uncommon for a home buyer to get mortgage-approved with debt-to-income ratio exceeding 50%, although exceptions may be possible based on credit history or other compensating factors.
Here is the distribution of conventional mortgages by debt-to-income.
Distribution of Conventional Mortgages by Debt-to-Income Ratio (Purchases, 2024)
| Debt-to-Income Ratio | Relative Share (%) |
|---|---|
| <20% | 5.3% |
| 20%-30% | 16.6% |
| 30%-36% | 17.3% |
| 36%-43% | 27.3% |
| 43%-45% | 12.8% |
| 45%-50% | 19.8% |
| >50% | 0.9% |
Property Type Rules
The HomeOne® mortgage program is limited to buyers who are making a single-family home their main residence. This includes detached homes in a suburb, townhomes in a city, and condos that meet Freddie Mac's definition of warrantable condo.
Some property types are specifically not allowed with HomeOne®. For example, buyers cannot use HomeOne® to purchase manufactured homes, 2-4 unit properties, or vacation homes. It also can't be used for investment properties.
Eligible property types for HomeOne®
HomeOne® mortgages are available for:
- Detached single-family homes
- Attached single-family homes (such as rowhomes or townhomes)
- Condominiums (must be warrantable and meet Freddie Mac requirements)
Ineligible property types for HomeOne®
The HomeOne® program does not allow:
- Manufactured homes
- Multi-unit properties (2–4 units)
- Second homes or vacation homes
- Investment properties
- Short-term rental properties
HomeOne® Eligible and Ineligible Property Types
| Property Type | Eligible for HomeOne®? | Notes |
|---|---|---|
| Single-family home (detached) | Yes | Must be primary residence |
| Single-family home (attached) | Yes | Includes townhomes and rowhomes; must be primary |
| Condo (warrantable) | Yes | Must meet Freddie Mac condo approval standards |
| Manufactured home | No | Manufactured homes are not eligible under HomeOne® |
| 2-4 unit property | No | Multi-unit homes are not allowed |
| Investment property | No | Only primary residences qualify |
| Second home | No | Not allowed under HomeOne® |
| Short-term rental | No | Not eligible |
Homeownership Education Requirement
To help first-time home buyers reduce their future risk of foreclosure, when none of the borrowers have ever owned a home, Freddie Mac requires every HomeOne® household to complete a homeownership education course. This is because a Freddie Mac studyshowed that pre-purchase counseling reduces delinquency rates by 29%.
If only one borrower is a first-time buyer and the other has owned a home within the past 36 months, the education requirement does not apply.
Free Online Class: CreditSmart® Homebuyer U
Freddie Mac offers its free CreditSmart® Homebuyer U to home buyers on-demand. The online, self-paced course satisfies the HomeOne® education requirement and covers the essentials of preparing for and owning a home, including:
- How to budget and save for your home purchase
- Understanding credit scores and how they affect your loan
- Mortgage basics, including interest rates and closing costs
- The responsibilities of homeownership after closing
The course takes between 2 to 3 hours to complete. Once finished, buyers receive a completion certificate to be shared with their mortgage lender.
Key Takeaway
HomeOne® is designed for first-time buyers with at least a 620 credit score, a 3% down payment, and plans to live in a one-unit primary residence. With no income or location limits, it's more flexible for buyers than other mortgage programs.
Frequently Asked Questions About HomeOne® Loan Requirements
Find answers to common questions about HomeOne® credit score, first-time buyer rules, and property eligibility.
What is the minimum credit score for a HomeOne® mortgage?
The minimum credit score is 620. Higher scores may give you better interest rates and lower PMI costs.
Do I have to be a first-time home buyer to use HomeOne®?
Yes. At least one borrower must be a first-time home buyer, which means not owning a residential property in the last 36 months.
Are there income limits for HomeOne®?
No. Unlike Home Possible®, HomeOne® has no income restrictions and no geographic limits.
Can I buy a multi-unit property with HomeOne®?
No. HomeOne® is only for one-unit primary residences such as a house, condo, or townhome.
Are manufactured homes eligible for HomeOne®?
No. Manufactured homes are not eligible under HomeOne®. Only stick-built, condos, or townhomes qualify.
Is homeownership education required?
Yes. If all borrowers are first-time buyers, at least one must complete an approved homeownership education course before closing.
