What is the down payment amount on the homeone mortgage?

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The HomeOne Mortgage is a popular loan program offered by Freddie Mac, a government-sponsored enterprise in the United States. One of the key factors that potential homebuyers often consider when applying for a mortgage is the down payment amount. In this article, we will explore the down payment requirements for the HomeOne Mortgage and provide a comprehensive understanding of this aspect of the loan.

Down Payment Requirements

Minimum Down Payment: The HomeOne Mortgage program allows borrowers to make a down payment as low as 3% of the purchase price of the home. This is significantly lower than the traditional 20% down payment typically required for conventional loans. The reduced down payment requirement makes homeownership more accessible for first-time homebuyers and those with limited funds for a down payment.

First-Time Homebuyer Requirement: The HomeOne Mortgage is specifically designed to assist first-time homebuyers. Therefore, one of the eligibility criteria for this loan program is that at least one borrower must be a first-time homebuyer. Freddie Mac defines a first-time homebuyer as someone who has not owned a home in the past three years. This requirement helps individuals and families who are entering the housing market for the first time.

Income and Credit Requirements: While the HomeOne Mortgage offers a low down payment option, borrowers are still subject to income and credit requirements. Lenders will evaluate the borrower’s income, employment history, and creditworthiness to determine their eligibility for the loan. It is important for potential borrowers to have a stable income and a good credit score to increase their chances of approval.

Private Mortgage Insurance (PMI): Since the down payment for the HomeOne Mortgage can be as low as 3%, borrowers are required to pay for private mortgage insurance (PMI). PMI is an insurance policy that protects the lender in case the borrower defaults on the loan. The cost of PMI varies depending on factors such as the loan amount, credit score, and down payment amount. It is typically added to the monthly mortgage payment.

Advantages of the HomeOne Mortgage

Lower Down Payment: The HomeOne Mortgage’s low down payment requirement is a significant advantage for first-time homebuyers and those with limited funds for a down payment. It allows more individuals and families to enter the housing market and achieve their homeownership goals.

Flexible Eligibility Criteria: The HomeOne Mortgage program has flexible eligibility criteria, making it accessible to a wide range of borrowers. While at least one borrower must be a first-time homebuyer, there are no income limits or geographic restrictions associated with this loan program. This flexibility provides opportunities for borrowers in various financial situations and locations.

Competitive Interest Rates: The HomeOne Mortgage offers competitive interest rates, similar to other conventional loan programs. Borrowers with good credit scores and financial stability can benefit from these favorable interest rates, making homeownership more affordable in the long run.


The HomeOne Mortgage program provides an attractive option for first-time homebuyers with its low down payment requirement. By allowing borrowers to make a down payment as low as 3%, this loan program makes homeownership more accessible to individuals and families who may not have substantial savings for a traditional 20% down payment. However, borrowers should also consider other factors such as income, creditworthiness, and the cost of private mortgage insurance when evaluating their eligibility and affordability for the HomeOne Mortgage.


1. freddiemac.com
2. investopedia.com
3. bankrate.com