Freddie Mac HomeOne Loan: 3% Down With No Income Limits

The dream of homeownership remains strong across America, yet many face financial barriers when trying to buy a home. The Freddie Mac HomeOne loan meets this challenge with a flexible program that requires only a 3% down payment. This option helps qualified buyers - especially first-time homebuyers - enter the market with fewer hurdles.

Unlike many conventional loan products that require a larger upfront cash contribution, HomeOne lowers the entry point while still offering competitive terms. At least one borrower must be purchasing their first home or not have owned a home in the past three years, keeping the program focused on expanding access to homeownership.

Before applying, use our down payment calculator to estimate your upfront costs and monthly payments.

What Is the HomeOne Mortgage Program?

The HomeOne loan is a conventional mortgage backed by the government-sponsored enterprise Freddie Mac. It allows borrowers to finance single-family homes, townhomes, and condominiums - as long as the property serves as a primary residence.

This program offers a balance between ease of access and responsible lending. Borrowers benefit from low-down-payment flexibility without the lifetime mortgage insurance often required by FHA loans. Once equity reaches 20%, borrowers can request the removal of private mortgage insurance (PMI), reducing monthly costs.

Because it's a conforming conventional loan, HomeOne adheres to underwriting standards that lenders rely on for consistency. This means faster approvals and smoother closings compared to niche or portfolio loan products.

HomeOne Eligibility Requirements

To qualify, applicants must meet specific guidelines set by Freddie Mac. The key condition is that at least one borrower must be a first-time homebuyer, defined as anyone who hasn't owned a home in the last three years.

Unlike some affordable housing programs, HomeOne has no income limits. This means buyers in high-cost markets can still benefit, unlike with Home Possible, which caps income at 100% of the area's median income. As a result, HomeOne serves a wider pool of potential home buyers.

Credit requirements remain reasonable. Most lenders accept a minimum credit score of 620, matching standard conventional loan guidelines. Borrowers with stronger credit profiles often secure better mortgage rates.

Debt-to-income (DTI) ratios typically stay under 43%, though some lenders allow up to 50% with strong compensating factors. Importantly, co-borrowers are permitted - even non-occupant co-borrowers - as long as one borrower meets the first-time buyer criteria and will occupy the home. This feature accommodates multi-generational households or buyers receiving financial help from family.

Does HomeOne Have Income Limits?

A common question among potential borrowers: does HomeOne have income limits? The answer is no. Unlike Home Possible or HomeReady programs, the Freddie Mac HomeOne program imposes no maximum income restrictions.

This distinction makes HomeOne especially appealing to moderate- to high-income earners in expensive housing markets. While these buyers may earn too much to qualify for income-restricted programs, they still benefit from the 3% down conventional loan structure that HomeOne offers.

Down Payment and Mortgage Insurance

The program's hallmark is its 3% minimum down payment. This makes it comparable to Fannie Mae's Conventional 97 and the Home Possible loan. However, HomeOne is unique in that it has no income restrictions.

Because the down payment is less than 20%, borrowers must carry private mortgage insurance. This cost usually ranges from 0.3% to 1.5% of the loan balance annually. Fortunately, unlike FHA loans, this insurance isn't permanent. Homeowners can cancel PMI once they reach 20% equity - either through payments, appreciation, or a combination of both.

Funds for the down payment and closing costs can come from several sources:

• Personal savings
• Gifts from family members (with proper documentation)
• Approved down payment assistance programs

Gift funds are beneficial for first-time home buyers who may have high incomes but limited savings. Lenders require a gift letter confirming the funds don't need to be repaid - a simple but vital step in the process.

HomeOne vs Home Possible: Key Differences

Freddie Mac HomeOne differs meaningfully from similar offerings. The most significant comparison is between HomeOne and Home Possible. Here's how it stacks up:

While Fannie Mae offers comparable low-down-payment options, Freddie Mac HomeOne fills a gap for moderate- and high-income first-time buyers in expensive markets. It also avoids the higher insurance costs associated with FHA loans.

Another advantage: HomeOne allows borrowers to purchase homes in any U.S. county, provided the loan stays within the 2026 conforming loan limit of $832,750 in most areas. This makes it ideal for buyers in growing suburban corridors or mid-tier cities.

Use our mortgage program comparison calculator to see how HomeOne stacks up against FHA, VA, and other conventional loan choices.

Freddie Mac HomeOne Guidelines

Understanding Freddie Mac HomeOne guidelines helps borrowers prepare for the application process. Key requirements include:

• First-time buyer status: At least one borrower must be a first-time homebuyer (no home ownership in the past three years)
• Minimum down payment: 3% from borrower's own funds or eligible gift sources
• Property type: Primary residence (single-family home, townhome, or condo)
• Minimum credit score: Typically 620 or higher
• Debt-to-income ratio: Generally under 43% (some flexibility with compensating factors)
• Income limits: No maximum income restrictions
• Loan amount: Must fall within conforming limits

The HomeOne guidelines also permit multiple borrowers, including those who won't occupy the property, as long as one qualifying borrower meets the first-time buyer requirement and lives in the home.

How to Apply for a HomeOne Loan

Not every mortgage lender offers the HomeOne mortgage. Borrowers should verify availability when shopping for a home loan. An experienced loan officer can guide applicants through the documentation process, including proof of first-time buyer status and income verification.

Applicants should gather standard financial records: recent pay stubs, two years of tax returns, bank statements, and employment history. Though homebuyer education isn't mandatory for HomeOne, many lenders recommend it - especially for actual first-time home purchasers. Courses are often available online through HUD-approved agencies.

Before applying, check current mortgage interest rates and consider locking in a rate once under contract. Our interest rates page provides current market information.

Benefits of the HomeOne Program

The HomeOne program provides a smart, sustainable route to homeownership for qualified buyers. With no income ceiling and flexible underwriting, it enables a new generation of homeowners to build equity, stability, and long-term wealth.

For those nearing retirement or returning to homeownership after a gap, this program offers a second chance without income caps. It reflects Freddie Mac's wider mission: ensuring the mortgage market serves a diverse range of American households - not just the highest earners or the most credit-perfect.

The wholesale HomeOne mortgage market also provides competitive pricing through broker channels, possibly lowering costs for borrowers who work with mortgage brokers instead of retail lenders.

Frequently Asked Questions

Can I use the HomeOne loan for an investment property?

No, the HomeOne program requires the property to be your primary residence. Investment properties and second homes don't qualify under HomeOne guidelines.

Is the HomeOne mortgage only available as a 30-year fixed loan?

While the HomeOne 30-year fixed is the most common option, some lenders may offer adjustable-rate versions. Check with your lender about available HomeOne mortgage term options.

How does HomeOne differ from Home Possible?

The primary difference in HomeOne vs Home Possible is income limits. Home Possible has income constraints based on area median income, while HomeOne has no income caps but requires at least one first-time buyer.

What documentation do I need for the HomeOne program?

For the HomeOne program, you'll typically need to sign an attestation confirming you haven't owned a home in the past three years. Your lender will verify this through credit reports and may request additional paperwork if you've previously owned property.

Where can I find more HomeOne information?

Visit our comprehensive conventional loan questions page for additional guidance, or explore all our mortgage calculators and educational articles.

Ready to see if a HomeOne loan is right for you? Start with our down payment calculator to estimate your costs, then connect with a lender who offers Freddie Mac HomeOne mortgages.