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New Low Down Payment Solution for First-Time Homebuyers; Refined Focus on Low- and Moderate-Income Borrowers

April 26, 2018

We're introducing the Freddie Mac HomeOneSM Mortgage, available to qualified first-time homebuyers for a low down payment of just three percent. We'll also be updating income limits for Home Possible® mortgages to better focus the product on low- and moderate-income borrowers. Both changes will be effective July 29, 2018.

HomeOneSM Has Got You Covered

  • HomeOne is a conventional mortgage solution that offers a low three percent down payment option to help meet the needs of a broader segment of the first-time homebuyer market, without geographic or income restrictions.
  • HomeOne allows a 97 percent loan-to-value ratio and a 105 percent total loan-to-value ratio (if the secondary financing is an Affordable Second), when at least one borrower is a first-time homebuyer.
  • To support informed homeownership, HomeOne has educational requirements for purchase transactions if all borrowers are first-time homebuyers.

Focus on Low- and Moderate-Income Homebuyers

  • We're capping income limits at 100 percent area median income (AMI) for properties in designated high-cost areas, designated disaster areas and minority census tracts.
  • Revisions to these income limits for Home Possible, along with annual AMI Limit updates, will be automated and available within Loan Product Advisor® on July 29, 2018. In addition, Freddie Mac's Home Possible Income & Eligibility Tool will also be updated as of that date to accurately reflect updated income limitations.
  • For eligible Home Possible loan applications submitted prior to July 29, 2018, Loan Product Advisor will automatically evaluate eligible Home Possible mortgages against the previous and current year's income limits, applying the higher of the two years' limits.

What This Means for You

  • We're providing new lending opportunities for you and evolving our products to meet the changing needs of your borrowers.
  • Eligible mortgages submitted through Loan Product Advisor prior to July 29, 2018, may continue to use the 2017 borrower income eligibility rules.
  • Home Possible and annual AMI updates will be made simultaneously on July 29, 2018.
  • These updates will eliminate the need for you to retain paper copies of the Feedback Certificate to demonstrate income eligibility.

For More Information

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