HomeOne® vs Conventional 97 Overview
Freddie Mac's HomeOne® and Fannie Mae's Conventional 97 are often mentioned together because they share almost all the same rules:
- 3% minimum down payment
- At least one first-time home buyer required
- 620 minimum credit score
- PMI until you reach 20% equity
- One-unit primary residence only
These similarities make HomeOne® and Conventional 97 two of the most flexible low-down-payment mortgages available for today's active buyers. But, if you're choosing between them, there are subtle differences. Here's what matters.
Key Differences Between HomeOne® and Conventional 97
There are only three real differences between HomeOne® and Conventional 97.
The first one — who backs the loan — doesn't really matter to most buyers since Fannie Mae and Freddie Mac are both under Federal Housing Finance Agency (FHFA) command, and these agencies may soon merge into the Great American Mortgage Corporation anyway.
The other two differences are about property type and lender preference.
One: HomeOne® does not allow manufactured homes, while Conventional 97 does for homes that meet Fannie Mae's manufactured homes guidelines.
Two: Some lenders work more with Freddie Mac, others with Fannie Mae, so your lender may guide you toward one program or the other.
| Feature | HomeOne® (Freddie Mac) | Conventional 97 (Fannie Mae) |
|---|---|---|
| Backed By | Freddie Mac | Fannie Mae |
| Manufactured Homes | Not allowed | Allowed if Fannie Mae eligible |
| Lender Access | Some lenders use Freddie Mac | Some lenders use Fannie Mae |
For most buyers, HomeOne® and the Conventional 97 are functinally identically. Any small difference may come down to the type of home you're buying and which program your preferred lender uses more often.
What This Means for Buyers
If you're buying a traditional home, condo, or townhome and qualify for HomeOne®, you'll likely qualify for Conventional 97, too. In that case, the decision about which loan to choose may rest on whether lender prefers to deliver loans to Freddie Mac or Fannie Mae, respectively.
If you're buying a manufactured home, however, Conventional 97 may be your only option, since HomeOne® does not allow them.
Otherwise, HomeOne® and Conventional 97 are interchangeable. Both are strong, flexible options designed to make first-time homeownership more affordable with just 3% down.
Key Takeaway
HomeOne® and Conventional 97 are nearly identical, and most buyers won't notice a difference. The main distinction is property type — Conventional 97 allows certain manufactured homes, while HomeOne® does not. Beyond that, which loan you get will often depend on your lender's relationship with Freddie Mac or Fannie Mae.
Frequently Asked Questions About HomeOne® vs Conventional 97
Answers to common questions about how Freddie Mac
Are HomeOne® and Conventional 97 the same program?
They are very similar 3% down mortgages, but HomeOne® is backed by Freddie Mac and Conventional 97 is backed by Fannie Mae.
Do both programs require PMI?
Yes. PMI is required until you reach 20% equity with either loan.
Which program allows manufactured homes?
Conventional 97 may allow certain manufactured homes that meet Fannie Mae standards. HomeOne® does not.
Do income limits apply to either program?
No. Neither HomeOne® nor Conventional 97 has income or geographic limits.
Which loan is better for me?
The differences are small. Your lender may determine eligibility based on whether they sell loans to Fannie Mae or Freddie Mac.
