Freddie Mac released a new mortgage option on April 26, 2018. This new option is called HomeOne and helps more first-time homebuyers qualify for their first home.
Tell me more.
First-time homebuyers make up almost half of all U.S. home purchases. If you think about it, that is a lot of people! Buying your first home in 2018 is difficult. That's because many new homebuyers have already accumulated other debts like student loans, auto, and credit card debt. HomeOne meets the need for a loan option that minimizes down payments and closing costs for new homebuyers.
How does it help me?
If you are a first-time homebuyer, HomeOne allows you to qualify for a home with a 3% down payment. This change occurred because Freddie Mac realized that American homes are evolving. The need to create new options for single first-time homebuyers is on the rise. HomeOne now includes eligibility on townhomes and condos because many single homeowners choose to settle in urban areas. Another plus is that HomeOne is not subject to geographic or income restrictions. This way, moderate to low-income households can still qualify for home purchase.
Give it to me straight. What’s in the fine print?
If you qualify for a HomeOne Mortgage, one of the buyers must be a first-time homebuyer and all borrowers must occupy the primary residence. However, only one credit score is necessary for approval. You cannot combine HomeOne with a conforming or cash-out mortgage. This new loan option can only be combined with a conventional, fixed rate or renovation mortgage.
How do I get started?
If you are ready to qualify for your first home, start by using Eagle Digital Mortgage. Eagle’s digital platform allows you to virtually connect bank statements, tax records and income documentation. Start uploading and complete your prequalification form in as little as 10 minutes. HomeOne Mortgage will be available to Eagle customers starting this summer.