HeritageOne℠ Mortgage
The HeritageOneSM mortgage offering is an innovative financing solution designed to meet the borrowing needs of members of federally recognized Native American tribes living in tribal areas. With this offering, borrowers have access to conventional financing for various types of land ownership interests (e.g., tribal trust land, allotted trust land, unrestricted or restricted fee simple land, etc.) and for homes located within eligible Native American tribes’ tribal areas.
To use HeritageOne:
- At least one borrower must be an enrolled member of a federally recognized Native American tribe who will occupy the property as their primary residence.
- Regarding tribal eligibility, a federally recognized Native American tribe that has either entered into a memorandum of understanding with Freddie Mac or is listed in HUD’s most recent Section 184 Participating Tribes List is considered eligible. (Note: The mortgaged premises must be located in the tribal area of an eligible Native American tribe.)
- For purchase transaction mortgages where all occupying borrowers are first-time homebuyers, at least one occupying borrower must complete a homeownership education program before the mortgage’s note date.
Bring more borrowers to the closing table by combining HeritageOne with the flexibilities of Freddie Mac’s CHOICERenovation®, CHOICEReno eXPress®, GreenCHOICE Mortgages®, manufactured home mortgages, CHOICEHome® and Affordable Seconds®, as applicable.
Key Lender Benefits:
- Expand your reach and grow your business by offering conventional, fixed-rate mortgage financing for members of federally recognized Native American tribes living in tribal areas.
- Access standardized mortgage guidelines and guidance from Freddie Mac to navigate the challenges of lending in tribal areas.
- Offer financing for multiple residential property types, including condominiums and manufactured homes.
- Meet market demand for more financing solutions for this historically underserved market and contribute to making housing more affordable and accessible.
Key Borrower Benefits
- Gain more home financing options.
- Attain homeownership with a conventional mortgage solution.
- Use funds from a variety of sources for the down payment, reserves and closing costs.
- Receive a credit to offset any appraisal costs.
- Make a down payment as low as 3% of the home’s sale price.
- Access homeownership education programs.
- Not subject to income limits to be eligible for HeritageOne.
Who is HeritageOne for?
- Borrowers who are members of federally recognized Native American tribes living in tribal areas.
Review Guide section 4504 for comprehensive information on HeritageOne requirements.
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.
HeritageOne Mortgage – The Solution for Lending in Indian Country
HeritageOne Mortgage Features
- Property Type/Eligible Properties
- 1- to 4-unit primary residence, which may include a:
- Condominium unit or a unit in a planned unit development (PUD)
- Manufactured home, including a manufactured home that is a CHOICEHome®
- Property with an ADU
- No second homes, investment properties, or cooperative units
- 1- to 4-unit primary residence, which may include a:
- Eligible Mortgage Products
First-lien, conventional, fixed-rate mortgage that is fully amortizing, with a term not greater than 30 years
- Transaction Type
- Purchase
- No cash-out refinance
- Maximum LTV Ratios
- Up to a 97% LTV ratio for mortgages secured by 1-unit properties and CHOICEHomes
- Up to a 95% LTV ratio for mortgages secured by 2- to 4-unit properties and manufactured homes
- Appraisal and Energy Reports
For market areas without a sufficient number of comparable sales to develop a fully supported and sufficiently documented opinion of market value using the sales comparison approach, an appraisal that relies solely on the cost approach for the opinion of market value is acceptable, under certain conditions.
Freddie Mac will issue an appraisal cost offset credit if an appraisal is obtained, which must be passed to the borrower.
- Income Limits
Borrowers are not subject to maximum income limits.
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