HomeOne^® Mortgage FAQ

Disclaimer

The information on this page is not part of, and is not a replacement or substitute for, the requirements found in the Freddie Mac Single-Family Seller/Servicer Guide and your other Purchase Documents.

General

Do all HomeOne^® borrowers need to take a homeownership education course?

No, homeownership education is only required when all borrowers are first-time homebuyers. If all borrowers are first-time homebuyers, at least one borrower must complete a homeownership education program before the mortgage's note date. The free Freddie Mac financial education curriculum, CreditSmart^® , is an acceptable form of homeownership education in addition to other alternatives specified in the Single-Family Seller/Servicer Guide (Guide) Bulletin.
Can HomeOne be manually underwritten?
Are borrowers without credit scores allowed for HomeOne?
Is HomeOne only eligible for fixed-rate conforming mortgages?
HomeOne mortgages must be fixed-rate conforming mortgages secured by 1- unit properties where all borrowers occupy the property as their primary residence. The following loan characteristics are not eligible:
- Adjustable rate mortgages
- Super conforming loans
- Cash-out refinance loans
- Second homes and investment properties
Are there any new attributes I need to provide in order to identify a HomeOne mortgage in Freddie Mac systems?

Our systems will leverage the same data clients submit normally in order to identify a HomeOne mortgage. This eliminates the need for an offering identifier in Loan Product Advisor or an Investor Feature Identifier (IFI) or Loan Program Identifier in Loan Selling Advisor^®. For example, Loan Product Advisor will make the determination based on the absence of an offering identifier, as well as LTV/TLTV/HTLTV exceeding 95 percent.
What is the pricing for HomeOne?
What does the effective date for HomeOne represent?
Is the mortgage insurance for HomeOne cancellable with sufficient equity?
Does HomeOne require a minimum LTV/TLTV and/or HTLTV?

While there is no minimum required LTV/TLTV/HTLTV for a HomeOne purchase or no cash out refinance, a loan that has an LTV/TLTV/HTLTV 95% or lower would fall under our standard Guide policy. Loans that have an LTV/TLTV/HTLTV greater than 95% will be recognized as a HomeOne mortgage in Loan Product Advisor, if there is no Offering Identifier provided. An example would be a loan with an LTV of 90% and subordinate financing that results in a TLTV/HTLTV of 96% would be assessed as a HomeOne. A loan with an LTV of 90% and subordinate financing that results in a TLTV/HTLTV of 94% will be considered a standard conventional product and subject to our standard Guide policy.

Borrower Eligibility

Do all borrowers have to be first-time homebuyers for a HomeOne mortgage?
No, for purchase transactions, at least one borrower must be a first-time homebuyer. Our Guide defines a first-time homebuyer as an individual who meets all the following requirements:
- Is purchasing the mortgaged premises
- Will reside in the mortgaged premises as a primary residence
- Had no ownership interest (sole or joint) in a residential property during the three-year period preceding the date of the purchase of the mortgaged premises
In addition, a displaced homemaker or a single parent may also be considered a first-time homebuyer if the individual had no ownership interest in a residential property during the preceding three-year period other than an ownership interest in the marital residence with a spouse. If a displaced homemaker or a single parent solely owned the marital residence, or solely or jointly owned a second home or investment property, the individual may not be considered a first-time homebuyer.
I have multiple borrowers on a loan-- one of the borrowers meets the definition of a first-time homebuyer, but the other borrower currently owns another property. Is this allowed?
If a borrower inherited a residential property and the borrower now wants to purchase a home using HomeOne, does having an inherited property disqualify the borrower from meeting the first-time homebuyer requirement?

At least one borrower on the HomeOne mortgage must be a first-time homebuyer, which is defined as having no ownership interest (either sole or joint) in a residential property in the three-year period prior to the purchase of the subject property. If the borrower currently owns the inherited property – or has owned it within the past three years, then the borrower would be ineligible for a HomeOne mortgage unless a co-borrower is present who meets the ownership interest requirements.

Refinancing

Can a borrower refinance a mortgage using HomeOne?

A HomeOne mortgage may be originated as a “no cash-out” refinance. If the LTV or the Home Equity Combined LTV (HTLTV) ratio is greater than 95 percent, the mortgage being refinanced must be owned or securitized by Freddie Mac unless it has secondary financing that is an Affordable Second. If the LTV and HTLTV is less than or equal to 95 percent, the TLTV ratio exceeds 95 percent and the secondary financing is an Affordable Second, the loan being refinanced does not have to be owned by Freddie Mac. The maximum TLTV ratio of a HomeOne is 105 percent if the secondary financing is an Affordable Second^®.
For a HomeOne no cash-out refinance, how will I know if the mortgage being refinanced is owned by Freddie Mac?
The delivery requirements state that if available, I should also provide the associated Freddie Mac loan number of the mortgage being refinanced. Will the Freddie Mac Loan Look-Up Tool provide me with that information?
For a no cash-out refinance, if there is an Affordable Second®, does the second have to be paid-off, or can it be resubordinated?

Property Requirements

Additional Resources

HomeOne® Mortgage FAQ

General

Borrower Eligibility

Refinancing

Property Requirements

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HomeOne^® Mortgage FAQ