Coming Soon: Freddie Mac’s HomeOne Mortgage Program

Later next month, Freddie Mac will be offering a new program for first time home buyers. This mortgage program offers low down payment options without the income limit or geographic restrictions that Home Possible has.

HomeOne will be available for both purchases and rate-term refinances on single family dwellings. At least one borrower on the application must be a first time home buyer when the transaction is a purchase and home buyer education is required.

Here’s more info:

  • Available for “true conforming” loan amounts only (not high balance loan amounts). This year, 2018, the conforming loan limit is $453,100.
  • Owner occupied/primary residences only.
  • One borrower must be a first time home buyer. A first time home buyer is defined as someone who has not had an ownership interest in a residential property for three years.
  • A displaced homemaker or single parent may be considered a first time home buyer if they only had an ownership interest in a marital residence with a spouse. If they jointly owned a second home or investment property within the last three years, they may not be considered a first time home buyer.
  • Property types allowed include 1-unit single family homes, town-homes and condominiums. Manufactured homes are not allowed for this program.
  • Private mortgage insurance is required for loan to values over 80%. The private mortgage insurance will be at a standard rate vs. a discounted rate as you would find with Home Possible or Home Ready.

HomeOne looks to be a great option for home buyers who are shy on funds for down payment and who have too much income to qualify in the area they want buy their home in. It will be interesting to see how the pricing compares to FHA mortgages out once this program is “live”.  FHA will remain an advantage with higher loan amounts where “high balance” is available (such as the greater Seattle area), when a borrower needs a lower down payment option.

If I can help you with your home purchase or refinance for homes located anywhere in Washington state, where I’m licensed, please contact me!

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