The Freddie Mac HomeOne Mortgage Program
The Freddie Mac HomeOne® mortgage is a loan program for first-time homebuyers that lets you purchase a house with just 3% down. Unlike some other low down payment programs for first-time homebuyers, with HomeOne there are no income limits.
We’ll explain how the HomeOne mortgage works — and compare it to similar loan programs — to help you decide if it’s the right fit for your home purchase or refinance needs.
What is the Freddie Mac HomeOne mortgage?
The Freddie Mac HomeOne mortgage is a low-down-payment program for first-time homebuyers with guidelines set by the Federal Home Loan Mortgage Corporation (FHLMC), more commonly known as Freddie Mac. Eligible buyers can purchase homes with only a 3% down payment, regardless of income or buying location.
To be eligible, the home you purchase must fall within conforming loan limits — up to $806,500 in most parts of the country. Buyers purchasing expensive homes in high-cost areas of the U.S. may be eligible for loan amounts as high as $1,209,750, which is the maximum high-cost conforming limit in 2025.
The HomeOne mortgage can also be used to refinance a home, as long as no cash is taken out. There is a drawback, however: The loan being refinanced must also be a Freddie Mac-serviced loan, unless it has secondary financing that’s part of the Affordable Seconds® program. Homeowners can use the Freddie Mac Loan Look-Up Tool to verify this information.
How the HomeOne mortgage works
Getting a HomeOne mortgage is similar to getting any other first-time homebuyer loan. You’ll need to:
- Apply with a lender that offers the program. Most lenders offer both Fannie Mae and Freddie Mac loan programs. But to be sure, check with your loan officer if you want to apply specifically for the HomeOne mortgage.
- Take a homebuyer education course. If you’re a first-time homebuyer purchasing on your own, you’ll need to take an approved homebuyer education course. There are free options, and you can skip the course if at least one co-borrower has owned a home before.
- Provide income, asset and credit documentation. Lenders vet your pay stubs, W-2s and bank statements, and will need to verify a valid credit score that meets the program requirements.
- Pay mortgage insurance. Mortgage insurance covers lender losses if you can’t make payments and go into mortgage default. You’ll have to purchase a minimum amount of coverage based on your loan-to-value ratio (LTV), as well as use an approved insurer.
- Take out a fixed-rate mortgage. Adjustable-rate mortgages (ARMs) aren’t permitted.
HomeOne eligibility requirements
Although the HomeOne program allows higher-income earners to qualify, there are some added restrictions that come with that flexibility. The table below shows the minimum mortgage requirements for the HomeOne program.
| Requirement type | HomeOne guideline |
|---|---|
| First-time homebuyer | At least one borrower must have had no ownership in a residential property over the past three years |
| Occupancy | All borrowers must live in the home as their primary residence |
| Eligible properties | One-unit homes Planned unit developments Condominiums |
| Down payment | 3% |
| Credit score | At least one borrower must have a usable credit score |
| Debt-to-income (DTI) ratio | The total monthly debt compared to verified gross income can’t exceed 45% |
| Homeownership education | Required if all borrowers are first-time homebuyers |
HomeOne income limits
The Freddie Mac HomeOne program doesn’t set any limits on income. This makes it a good option for borrowers who have only a 3% down payment but earn more than the median income requirements set for the Fannie Mae HomeReady® or Freddie Mac Home Possible® programs.
Pros and cons of a HomeOne mortgage
| Pros | Cons |
|---|---|
You won’t be subject to income limits You need only a 3% down payment You won’t be subject to location restrictions You can use gifted funds to cover some or all of the down payment | You or a co-borrower must be a first-time homebuyer You can’t purchase a second home or investment property You can’t purchase a manufactured or multifamily home You must live in the home as your primary residence You can’t choose an adjustable-rate loan |
HomeOne vs. Home Possible
Freddie Mac’s Home Possible program is designed for lower-income borrowers and gives more flexibility for the types of properties you can buy. Below is a side-by-side glance at the biggest differences between the two programs.
| HomeOne | HomePossible | |
|---|---|---|
| No income limits | ||
| Allows multifamily homes (two to four units) | ||
| Allows manufactured homes | ||
| Allows adjustable-rate loans |
Alternatives to a Freddie Mac HomeOne mortgage
There are several other loan programs to consider besides the Freddie HomeOne mortgage. Below is a brief description of each.
Fannie 97% This 3% down payment program is offered by Fannie Mae, which is a government-sponsored enterprise (GSE) similar to Freddie Mac. Like the HomeOne program, there are no income limits.
Fannie Mae HomeReady The HomeReady® program is similar to Freddie Mac’s Home Possible program, with a 3% down payment requirement and income limits for qualified borrowers.
FHA loans The Federal Housing Administration (FHA) insures loans for borrowers and requires only a 3.5% down payment for those with a minimum 580 credit score. There are no income limits, but borrowers pay two types of mortgage insurance (conventional loans require only one type of mortgage insurance).
VA loans Eligible military borrowers can purchase a home with no-down-payment financing backed by the U.S. Department of Veterans Affairs (VA). No mortgage insurance is required, but you’ll have to pay a VA funding fee ranging between 2.15% and 3.30% of the loan amount.
USDA loans Low-income borrowers purchasing homes in designated rural areas may qualify for a no-down-payment loan backed by the U.S. Department of Agriculture (USDA).
The table below shows you how the HomeOne loan guidelines stack up against the alternatives listed above.
| Loan requirement | HomeOne | Fannie 97% | HomeReady | FHA loan | VA loan | USDA loan |
|---|---|---|---|---|---|---|
| Down payment | 3% | 3% | 3% | 3.5% | 0% | 0% |
| First-time homebuyer required | ||||||
| Income limits | ||||||
| Credit score minimum | No guideline minimum | 620 | 620 | 580 with 3.5% down; 500 with 10% down | No guideline minimum | No guideline minimum |
| Loan limits | $806,500 for most areas | $806,500 for most areas | $806,500 for most areas | $524,225 for most areas | Varies by county | |
| Property type limits | ||||||
| Geographic limits |