Freddie Mac has launched the HomeOne mortgage option, a conventional 3%-down payment option, as it seeks to broaden access to credit for qualified first-time homebuyers.
HomeOne will be available starting July 29. The mortgage does not have geographic or income restrictions. It also complements Freddie Mac’s Home Possible mortgage products for low-to-moderate income borrowers.
The mortgage is offered only for conforming fixed-rate mortgages secured by a one-unit primary residence. It must be underwritten through Freddie Mac’s Loan Product Advisor and at least one of the borrowers must be a first-time homebuyer.
“Freddie Mac’s HomeOne mortgage is part of the company’s ongoing efforts to support responsible lending, provide sustainable homeownership, and improve access to credit,” said Danny Gardner, senior vice president of single family affordable lending and access to credit at Freddie Mac. “The HomeOne mortgage will provide our customers the flexibility they need to help borrowers anywhere in the country achieve the milestone of homeownership and overcome the common down payment resource hurdle. HomeOne is a great solution for aspiring homebuyers to grab that first rung of the property ladder and enjoy the financial and social benefits of participating in homeownership.”
Freddie Mac also announced that it is adjusting the area-median-income (AMI) limits for its Home Possible mortgage products in conjunction with the release of the HomeOne mortgage. Specifically, Home Possible income limits will be capped at 100% AMI, except for low-income census tracks which will continue to have no limits.