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
- 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.
Growing Your Business
From valuable training and networking events to advanced tools and applications that help you work smarter, Freddie Mac has the resources you need to expand into new markets and grow your revenues.
Find streamlined benefits and product requirements on HeritageOne, a mortgage offering designed to meet the borrowing needs of members of federally recognized Native American tribes living in tribal areas.
Review this self-paced training on an overview and requirements on HeritageOne. Complete this tutorial to fulfill the training component of obtaining approval to sell HeritageOne mortgages to Freddie Mac.
HeritageOne Seller Eligibility Form
Complete this form in its entirety and send the completed form to your Freddie Mac account executive or customer relationship manager.
Servicing HeritageOne Mortgages
HeritageOne Mortgages require specific servicing expertise and special handling. Work through this 25-minute video to understand servicing nuances related to these mortgages.
Webinar: Native American Housing Panel
Listen to a conversation with Danny Gardner, Senior Vice President Mission and Community Engagement and industry leaders discuss affordable and sustainable housing for Native Americans. To access the recording, the password is Freddie01!.
Roundtable: Advancing Housing for Members of Native American Tribes
Freddie Mac and Lakota Funds subject-matter experts led an interactive discussion on HeritageOne℠ – an innovative mortgage solution designed to meet the borrowing needs of members of federally recognized Native American tribes living in tribal areas.
The Appraisal Institute focuses on appraising homes in tribal areas using the cost based approach.
Podcast: HeritageOne: A Solution for Financing Homes in Indian Country
Listen to Freddie Mac subject-matter expert on the Hoporenkv Native American Podcast by the Seminole Tribe of Florida’s Native Learning Center on HeritageOne mortgage on the benefits, product features, borrower eligiblity and more.
Section 184 Participating Tribes List
Access the U.S. Department of Housing and Urban Development's participating tribes list.