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Torres & Co. Lending > First-Time Homebuyer Programs > HomeOne

HomeOne

HomeOne Loan Program

The HomeOne Loan Program, offered through Freddie Mac, is a simple and flexible 3% down Conventional loan designed specifically for first-time homebuyers. Unlike other programs with income or geographic restrictions, HomeOne offers broader eligibility, making it one of the most accessible first-time buyer options available.

What Is HomeOne?

HomeOne is a Conventional mortgage that allows first-time buyers to purchase a primary residence with as little as 3% down. It is ideal for borrowers who may not qualify for other affordable programs due to income limits or location restrictions.

How It Works

  • Down Payment: Minimum 3%.
  • Credit Score Requirement: 620+ (stronger credit scores receive better rates and terms).
  • Income Limits: None — unlike HomeReady and Home Possible, there are no area median income (AMI) restrictions.
  • Occupancy: At least one borrower must be a first-time homebuyer.
  • Mortgage Insurance: Required with <20% down but can be cancelled once 20% equity is reached.
  • Property Types: 1-unit primary residences only (single-family homes, condos, and PUDs).

Benefits of HomeOne

  • Just 3% down payment required.
  • No income or location restrictions — broader eligibility compared to HomeReady or Home Possible.
  • First-time buyers gain access to Conventional financing without FHA’s lifelong mortgage insurance.
  • PMI can be cancelled once equity reaches 20%.
  • Gift funds are allowed for the entire down payment.

Fun Facts & Insider Details

  • First-Time Buyer Definition: A first-time buyer is someone who hasn’t owned a home in the last 3 years.
  • No Geographic Limits: Unlike some affordable housing programs, HomeOne is available nationwide.
  • Reduced MI vs FHA: Although mortgage insurance is required under 20% down, it’s cancellable — unlike FHA, where MIP may last for the life of the loan.
  • Co-Borrower Flexibility: A co-borrower who is not a first-time buyer can be included, as long as at least one borrower is first-time.

Who Is the Best Candidate for HomeOne?

  • First-time homebuyers with limited savings.
  • Buyers who don’t qualify for HomeReady or Home Possible due to income or location restrictions.
  • Borrowers who prefer a Conventional loan to avoid FHA’s permanent mortgage insurance.

FAQs – HomeOne

  • No. HomeOne is for primary residences only.

  • Yes. First-time buyers must complete an approved homeownership education course.

  • For many buyers, yes — because PMI on HomeOne can be removed once 20% equity is reached, while FHA’s MIP may last for the life of the loan.

  • That’s fine — as long as at least one borrower is a first-time buyer.

Next Step

Ready to see if HomeOne is the right program for your first home? We’ll guide you every step of the way.

Apply Now

⚖️ Disclaimer: This guide is for educational purposes only. Loan approval and terms depend on credit, income, assets, property type, and program guidelines.

Torres & Co. LendingHomeOne