Keep in mind that the definition of “first-time home buyer” is not as strict as it might sound.
The other major perk is that there’s no geographic limitations regarding where you are allowed to buy a home using the HomeOne loan. That’s a massive advantage over other conventional loan programs that may require a down payment of 5%, 10%, or even 20%. One of the key benefits of the HomeOne loan is that it allows you to purchase real estate with a down payment of as little as 3 percent. You will even have the chance to shop around for the lowest interest rate. That means you can get a HomeOne loan from just about any lender that offers Freddie Mac programs.
Instead, it buys packaged mortgage loans from various financial institutions that provide house loans to borrowers. Freddie Mac Doesn’t Offer Loans Like HomeOne Directly to Buyers Keep in mind that Freddie Mac isn’t a mortgage lender but rather a government-sponsored agency for helping middle- and lower-income Americans buy homes. The loan is primarily targeted towards first-time buyers that don’t have too much disposable income but would like to enter the market with a smaller down payment. Due to its lenient underwriting guidelines, it can be an excellent option for low-income or moderate-income borrowers. What’s the Freddie Mac HomeOne Loan?įreddie Mac’s HomeOne mortgage was introduced in 2018 and is aimed at making financing more accessible to prospective home buyers and home buyers that want to refinance. Furthermore, it has less strict eligibility requirements compared to many other programs, which makes it an attractive option for first-time home buyers. With HomeOne, you can buy a house with just 3 percent down. Fortunately, there are several low- and no-down payment loan options and one such program is the HomeOne loan by Freddie Mac. One of the greatest hurdles faced by first-time home buyers is saving for a down payment.