If you’re a first-time buyer in Washington State who earns too much to qualify for income-limited programs like Home Possible or HomeReady, Freddie Mac’s HomeOne® mortgage may be exactly what you need.
HomeOne offers 3% down with no income limits — making it one of the most accessible low-down-payment conventional options for buyers at any income level, as long as at least one borrower is a first-time homebuyer. It’s a program that doesn’t get as much attention as HomeReady or Home Possible, but it deserves a close look.
HomeOne at a Glance
- Minimum down payment: 3%
- Credit score: No GSE minimum for loans run through Freddie Mac’s Loan Product Advisor (LPA) — at least one borrower must have a credit score on file. See disclosure below.
- Income limits: None
- First-time buyer requirement: At least one occupying borrower must be a first-time homebuyer on purchase transactions.
- Property types: Primary residence only; 1-unit properties, condos, planned unit developments
- Mortgage insurance: Required under 20% down; standard conventional PMI rates; cancelable once you reach 20% equity
- Homebuyer education: Required when all occupying borrowers are first-time buyers
Who Qualifies as a First-Time Home Buyer for HomeOne?
For HomeOne purchase transactions, at least one occupying borrower must meet the definition of a first-time homebuyer — meaning they have not owned a primary residence in the past three years. The other borrowers on the loan do not need to be first-time buyers.
This makes HomeOne particularly useful for situations like:
- A couple where one partner has owned before but the other hasn’t
- A first-time buyer who earns too much for Home Possible or HomeReady income limits
- A buyer in a high-cost area like Seattle or the Eastside who needs 3% down without income restrictions
No Income Limits — Why This Matters in Washington State
HomeReady and Home Possible both cap qualifying income at 80% of the Area Median Income (AMI) for the property’s census tract. In King County, that threshold is higher than most of the country — but plenty of buyers still exceed it, especially dual-income households or buyers in higher-paying industries like tech, healthcare, and professional services.
HomeOne removes that barrier entirely. There is no income ceiling. As long as at least one borrower qualifies as a first-time buyer and the loan meets Freddie Mac’s standard guidelines, income is not a limiting factor.
HomeOne vs. Standard Conventional: What’s the Difference?
A standard conventional loan typically requires 5% down for most buyers. HomeOne allows 3% down — the key difference. In exchange, at least one borrower must be a first-time buyer, and homebuyer education is required when all borrowers are first-time buyers.
The trade-off compared to Home Possible is mortgage insurance. HomeOne carries standard conventional PMI rates rather than the reduced rates available on Home Possible and HomeReady. For buyers who exceed the income limits of those programs, that’s an acceptable trade — you get 3% down without the income ceiling.
Mortgage Insurance on HomeOne
PMI is required on HomeOne when you put less than 20% down. Unlike Home Possible and HomeReady, HomeOne does not offer reduced mortgage insurance rates — standard conventional PMI pricing applies. The good news is that PMI can be canceled once you reach 20% equity through loan paydown or home appreciation.
If your credit score is strong, the PMI cost difference between HomeOne and Home Possible may be minimal. Your loan officer can run a side-by-side comparison to show you the actual monthly difference based on your specific scenario.
Down Payment Sources
HomeOne is flexible about down payment sources:
- Personal savings
- Gift funds from family
- Down payment assistance programs
- Grants from eligible organizations
- Freddie Mac’s Affordable Seconds (subordinate financing) — allows combined LTV up to 105%
Sellers are allowed to contribute towards allowable closing costs when negotiated into the purchase and sales agreement.
Homebuyer Education Requirement
When all occupying borrowers are first-time homebuyers, at least one must complete a homebuyer education course before closing. The course must be from a HUD-approved counseling agency or eligible provider. Free and low-cost options are available and most can be completed online in 4–8 hours.
HomeOne for Refinancing
HomeOne is available for rate-and-term refinances for borrowers who currently have a HomeOne loan. If you purchased with HomeOne and want to lower your rate or change your term, you may be able to refinance within the program. As with the purchase loan, HomeOne refinances do not have income limits.
HomeOne vs. Home Possible vs. HomeReady
| Feature | HomeOne (Freddie Mac) | Home Possible (Freddie Mac) | HomeReady (Fannie Mae) |
|---|---|---|---|
| Minimum Down Payment | 3% | 3% | 3% |
| Income Limits | None | 80% AMI | 80% AMI |
| First-Time Buyer Required | At least one borrower | No | No |
| Minimum Credit Score | None (LPA)* | None (LPA)* | None (DU)* |
| Mortgage Insurance | Standard; cancelable | Reduced; cancelable | Reduced; cancelable |
| Non-Borrower Household Income | No | Limited | Yes — compensating factor |
| Gift Funds Allowed | Yes | Yes | Yes |
| Down Payment Assistance Compatible | Yes | Yes | Yes |
| Available for Refinances | Yes | Yes (rate-and-term only) | Yes |
| Homebuyer Education Required | When all borrowers are first-time buyers | When all borrowers are first-time buyers | When all borrowers are first-time buyers |
* Credit score requirements reflect current Fannie Mae and Freddie Mac automated underwriting guidelines as of November 2025. Some lenders may impose their own minimum credit score requirements (called overlays) above GSE guidelines. Contact us to confirm current requirements for your specific situation.
Is HomeOne Right for You?
HomeOne is worth exploring if you:
- Are a first-time buyer — or buying with someone who is
- Earn too much to qualify for Home Possible or HomeReady income limits
- Want 3-5% down without income restrictions
- Are buying a single-unit primary residence in Washington State
- Want to pair a low down payment with down payment assistance
If you meet the income limits for Home Possible or HomeReady, those programs may offer lower mortgage insurance — worth comparing side by side before you decide. I’ll run the numbers on all three and show you exactly which program saves you more over time.
Let’s Talk about whether HomeOne fits your situation, or Get a Free Rate Quote to see current pricing.
Rhonda Porter is a Licensed Mortgage Advisor (NMLS #121324) at New American Funding (NMLS #6606), serving home buyers throughout Washington State.
