Finding the right mortgage product can be difficult, especially if you’re a first-time buyer. In fact, it’s easy to become disillusioned with the idea of buying a property, or thinking you’ll never be able to afford a home. A good solution for first-time homebuyers may be the HomeOne Mortgage by Freddie Mac. With just 3% down and fewer restrictions on household income, it may be the perfect mortgage option for some first-time buyers.
Suggested: Freddie Mac HomeOne
What is the HomeOne Mortgage?
If you’re a struggling first-time homebuyer, the HomeOne Mortgage is a potential solution. It’s similar to the Home Possible program, but it has fewer restrictions.
According to Freddie Mac:
- “HomeOne℠ reflects our dedication to responsible lending, sustainable homeownership and improving access to credit.
- With more flexibility for maximum financing, HomeOne℠ provides expanded opportunity and greater certainty to bring more borrowers to the closing table.”
In a nutshell, that’s what the HomeOne program is all about. It provides improved access to credit for homebuyers with more flexibility for maximum financing.
What makes the HomeOne Mortgage so appealing?
Of course, the 3% down payment is extremely appealing for homebuyers who have long dreamed of homeownership. Also, a HomeOne mortgage has fewer restrictions than many other mortgages.
- The HomeOne Mortgage has no borrower geographic or income limits.
- Private Mortgage Insurance (PMI) can be canceled once the loan balance reaches 78% of the home’s value.
- You can obtain a lower monthly PMI payment than with FHA with a good credit score.
HomeOne Mortgage: Perfect for First-Time Homebuyers
The HomeOne mortgage is perfect for first-time homebuyers. If a couple is buying the home, only one has to qualify as a first-time buyer, which is defined as someone who has not owned a home in the past 3 years.
It can also be a perfect solution for young professionals and others who would like to own a home but have had difficulty saving for a down payment and closing costs because of high living costs.
What are the restrictions and eligibility requirements?
Though a HomeOne mortgage has fewer restrictions than many other mortgage products, there are restrictions and eligibility requirements.
In order to qualify, you must meet FreddieMac’s lender guidelines. In brief:
- At least one borrower must be a first-time homebuyer.
- You must have a 3% minimum down payment.
- At least one borrower on the transaction must have a usable Credit Score (620 or higher).
- Eligible properties include 1-unit properties, including condominiums and units in Planned Unit Developments.
Are there any downsides to the HomeOne Mortgage?
Like any mortgage product, the HomeOne has its disadvantages but they are fairly minimal when compared to the benefits.
- If both parties buying the home are first-time buyers, they are required to complete Homebuyer Education. Also, PMI is required for this mortgage if the loan value is more than 78% of the home’s value.
All in all, though, the HomeOne mortgage is a very good product that can help many homebuyers, who may not be able to otherwise purchase a home.
Marimark Mortgage is based in Tampa, Florida and serves the mortgage needs of homebuyers, homeowners, and investors in Florida, Virginia, and Pennsylvania.
We specialize in conventional home mortgages, FHA, VA, and USDA mortgage options, refinance loans, and reverse mortgages. We’ve worked extensively with cash-out refinancing and help clients to lower their monthly mortgage payments.
To get started with a mortgage to buy your next home, please fill out our Quick Mortgage Application, or contact us direct.