source:
  type: guide
  id: fhlmc-4605.1
  authority: Freddie Mac Single-Family Seller/Servicer Guide Section 4605.1 — HomeOne®
    Mortgages
  description: Freddie Mac Single-Family Seller/Servicer Guide Section 4605.1 — HomeOne®
    Mortgages.
  coverage_tier: operative
obligations:
- id: fhlmc-4605.1-full
  canonical_id: fhlmc-4605.1-full
  section: Freddie Mac Single-Family Seller/Servicer Guide Section 4605.1 — HomeOne®
    Mortgages
  type: do
  tags:
  - regulator-direct
  - fhlmc
  - freddie-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide Section 4605.1 — HomeOne®
      Mortgages
    source_class: fhlmc-guide
    source_url: https://guide.freddiemac.com/ci-guide
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-05-23T00:27:40Z'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '4605.1: HomeOne® Mortgages (07/02/25) HomeOne® Mortgages are
      Mortgages with loan-to-value (LTV), total LTV (TLTV) and/or Home Equity Line
      of Credit (HELOC) TLTV (HTLTV) ratios above 95% originated in accordance with
      the requirements of the Guide and this chapter. This section contains requirements
      related to: ■ Eligible Mortgages ■ Ineligible Mortgages ■ Mortgage purpose ■
      Property eligibility ■ Occupancy requirement ■ Underwriting requirements ■ Maximum
      LTV/TLTV/HTLTV ratios ■ Borrower eligibility ■ Homeownership education ■ Delivery
      requirements (a) Eligible Mortgages HomeOne Mortgages eligible for sale to Freddie
      Mac must be both of the following: ■ A fixed-rate Mortgage; and ■ An Accept
      Mortgage (b) Ineligible Mortgages Mortgages with the following characteristics
      are not eligible for sale to Freddie Mac as HomeOne Mortgages: ■ Freddie Mac
      Enhanced Relief Refinance® Mortgages Freddie Mac Single-Family Seller/Servicer
      Guide Chapter 4605 As of 04/01/26 Page 4605-2 ■ Financed Permanent Buydown Mortgages
      ■ Government Mortgages ■ HeritageOne® Mortgages ■ Home Possible® Mortgages ■
      Mortgages with capitalized balances as described in Chapter 4403 ■ Refi Possible®
      Mortgages ■ Seller-Owned Converted Mortgages ■ Seller-Owned Modified Mortgages
      ■ Super conforming Mortgages as described in Chapter 4603 (c) Mortgage purpose
      A HomeOne Mortgage must be either a: ■ Purchase transaction Mortgage, or ■ “No
      cash-out” refinance Mortgage meeting the following requirements: ❑ The Mortgage
      being refinanced must be owned in whole or in part or securitized by Freddie
      Mac when: ■ The LTV and/or HTLTV ratio is greater than 95%, or ■ The TLTV ratio
      is greater than 95% with secondary financing that is not an Affordable Second®
      ❑ The Mortgage being refinanced does not have to be owned or securitized by
      Freddie Mac when the TLTV ratio is greater than 95% with secondary financing
      that is an Affordable Second (d) Property eligibility HomeOne Mortgages must
      be secured by a 1-unit Primary Residence that is not a Manufactured Home, unless
      the Manufactured Home is a CHOICEHome®. Freddie Mac Single-Family Seller/Servicer
      Guide Chapter 4605 As of 04/01/26 Page 4605-3 (e) Occupancy requirement For
      HomeOne Mortgages, all Borrowers must occupy the Mortgaged Premises as their
      Primary Residence. (f) Underwriting requirements For HomeOne Mortgages, at least
      one Borrower on the transaction must have a usable Credit Score as determined
      by Loan Product Advisor®. (g) Maximum LTV/TLTV/HTLTV ratios For HomeOne Mortgages,
      the maximum LTV/TLTV/HTLTV ratio is 97%. Exception: For HomeOne Mortgages with
      Affordable Seconds, the maximum TLTV ratio is 105%. (h) Borrower eligibility
      For HomeOne purchase transaction Mortgages, at least one Borrower must be a
      First- Time Homebuyer. (i) Homeownership education For HomeOne purchase transaction
      Mortgages when all Borrowers are First-Time Homebuyers, at least one Borrower
      must participate in a homeownership education program in accordance with Section
      5103.4. (j) Delivery requirements See Section 6302.41 for special delivery requirements
      for HomeOne Mortgages that are purchase transaction Mortgages. See Section 6302.16
      for delivery requirements for HomeOne Mortgages that are “no cash- out” refinance
      Mortgages. 4605.1: HomeOne® Mortgages (Future effective date 07/01/26) HomeOne®
      Mortgages are Mortgages with loan-to-value (LTV), total LTV (TLTV) and/or Home
      Equity Line of Credit (HELOC) TLTV (HTLTV) ratios above 95% originated in accordance
      with the requirements of the Guide and this chapter. This section contains requirements
      related to: Freddie Mac Single-Family Seller/Servicer Guide Chapter 4605 As
      of 04/01/26 Page 4605-4 ■ Eligible Mortgages ■ Ineligible Mortgages ■ Mortgage
      purpose ■ Property eligibility ■ Occupancy requirement ■ Underwriting requirements
      ■ Maximum LTV/TLTV/HTLTV ratios ■ Borrower eligibility ■ Homeownership education
      ■ Delivery requirements (a) Eligible Mortgages HomeOne Mortgages eligible for
      sale to Freddie Mac must be both of the following: ■ A fixed-rate Mortgage;
      and ■ An Accept Mortgage (b) Ineligible Mortgages Mortgages with the following
      characteristics are not eligible for sale to Freddie Mac as HomeOne Mortgages:
      ■ Freddie Mac Enhanced Relief Refinance® Mortgages ■ Financed Permanent Buydown
      Mortgages ■ Government Mortgages ■ HeritageOne® Mortgages ■ Home Possible® Mortgages
      ■ Refi Possible® Mortgages Freddie Mac Single-Family Seller/Servicer Guide Chapter
      4605 As of 04/01/26 Page 4605-5 ■ Seller-Owned Converted Mortgages ■ Seller-Owned
      Modified Mortgages ■ Super conforming Mortgages as described in Chapter 4603
      (c) Mortgage purpose A HomeOne Mortgage must be either a: ■ Purchase transaction
      Mortgage, or ■ “No cash-out” refinance Mortgage meeting the following requirements:
      ❑ The Mortgage being refinanced must be owned in whole or in part or securitized
      by Freddie Mac when: ■ The LTV and/or HTLTV ratio is greater than 95%, or ■
      The TLTV ratio is greater than 95% with secondary financing that is not an Affordable
      Second® ❑ The Mortgage being refinanced does not have to be owned or securitized
      by Freddie Mac when the TLTV ratio is greater than 95% with secondary financing
      that is an Affordable Second (d) Property eligibility HomeOne Mortgages must
      be secured by a 1-unit Primary Residence that is not a Manufactured Home, unless
      the Manufactured Home is a CHOICEHome®. (e) Occupancy requirement For HomeOne
      Mortgages, all Borrowers must occupy the Mortgaged Premises as their Primary
      Residence. (f) Underwriting requirements For HomeOne Mortgages, at least one
      Borrower on the transaction must have a usable Credit Score as determined by
      Loan Product Advisor®. Freddie Mac Single-Family Seller/Servicer Guide Chapter
      4605 As of 04/01/26 Page 4605-6 (g) Maximum LTV/TLTV/HTLTV ratios For HomeOne
      Mortgages, the maximum LTV/TLTV/HTLTV ratio is 97%. Exception: For HomeOne Mortgages
      with Affordable Seconds, the maximum TLTV ratio is 105%. (h) Borrower eligibility
      For HomeOne purchase transaction Mortgages, at least one Borrower must be a
      First- Time Homebuyer. (i) Homeownership education For HomeOne purchase transaction
      Mortgages when all Borrowers are First-Time Homebuyers, at least one Borrower
      must participate in a homeownership education program in accordance with Section
      5103.4. (j) Delivery requirements See Section 6302.41 for special delivery requirements
      for HomeOne Mortgages that are purchase transaction Mortgages. See Section 6302.16
      for delivery requirements for HomeOne Mortgages that are “no cash- out” refinance
      Mortgages. Freddie Mac Single-Family Seller/Servicer Guide Chapter 4606 As of
      05/06/26 Page 4606-1 Chapter 4606: GreenCHOICE Mortgages® 4606.1: Eligible Mortgages
      and improvements, and use of Mortgage proceeds (11/06/24) Mortgages that meet
      the requirements of this chapter and the Seller’s other Purchase Documents are
      eligible for sale to Freddie Mac as GreenCHOICE Mortgages®. This section contains
      requirements related to: ■ Eligible Mortgages ■ Eligible improvements ■ Use
      of Mortgage proceeds (a) Eligible Mortgages The Mortgage must be: ■ A First
      Lien Mortgage ■ A purchase transaction Mortgage or a “no cash-out” refinance
      Mortgage, and ■ Secured by a property with eligible improvements (b) Eligible
      improvements For purposes of this chapter, “eligible improvements” means: ■
      Energy and/or water efficiency improvements, including: ❑ Renewable energy sources
      (e.g., solar panels, hydropower systems, wind turbines and geothermal systems)
      ❑ ENERGY STAR Energy Efficient Products listed at https://www.energystar.gov/products/products-list
      ❑ Electrification improvements (e.g., replacing equipment or appliances that
      run on natural gas or other combustible fuel with efficient, all-electric technologies)
      ■ Health and safety improvements (e.g., building-code compliance if cited by
      the applicable jurisdiction) Freddie Mac Single-Family Seller/Servicer Guide
      Chapter 4606 As of 05/06/26 Page 4606-2 ■ Resiliency and preventative improvements
      to either repair natural disaster damage or improve a home’s ability to withstand
      future natural disasters ■ Basic improvements, such as: ❑ Adding ceiling, wall
      or floor insulation ❑ Air conditioning/heating replacement with high efficiency
      ❑ Air sealing ❑ Caulking or weather stripping ❑ Heat pumps and induction cooktops
      ❑ High efficiency refrigerators/freezers, water heaters and light bulbs ❑ Hurricane
      fabric or shutters ❑ Low-flow water fixtures ❑ Programmable thermostats ❑ Solar
      water heaters ❑ Ventilation; radon mitigation; and asbestos, mold or lead abatement
      ❑ Window and door replacement Eligible improvements must: ■ Be permanently affixed
      to the property, except for: ❑ Appliances used in a kitchen, laundry room or
      utility room ❑ Health and safety improvements ■ Not impact the structural integrity
      of the property for Mortgages secured by Manufactured Homes, including Manufactured
      Homes that are CHOICEHomes® (c) Use of Mortgage proceeds The Mortgage proceeds
      must be used as follows: ■ For a purchase transaction Mortgage, to finance the
      purchase, installation, repair or upgrade of eligible improvements, to be completed
      after the Note Date Freddie Mac Single-Family Seller/Servicer Guide Chapter
      4606 As of 05/06/26 Page 4606-3 ■ For a “no cash-out” refinance Mortgage, to
      finance the: ❑ Purchase, installation, repair or upgrade of eligible improvements,
      to be completed after the Note Date; or ❑ Payment (in whole or in part) towards
      an existing debt incurred by the Borrower to finance the purchase, installation,
      repair or upgrade of eligible improvements (such debt, an “Existing Debt” for
      purposes of this chapter), completed before the Note Date Fees associated with
      the purchase, installation, repair or upgrade of eligible improvements, including
      any fees related to plans and specifications, permits, title updates, appraisals,
      draw inspections or final inspections, as applicable, may be financed as part
      of the Mortgage. The cost of an energy report, if required, may also be financed.
      4606.2: Determination of value for the loan-to-value (LTV)/total loan-to-value
      (TLTV)/Home Equity Line of Credit (HELOC) TLTV (HTLTV) ratio, underwriting requirements
      and qualifying ratios (11/06/24) This section contains requirements related
      to: ■ Determining value ■ Underwriting ■ Qualifying ratios for Manually Underwritten
      Mortgages (a) Determining value The value used to calculate the loan-to-value
      (LTV) ratio, the total LTV (TLTV) ratio and the Home Equity Line of Credit (HELOC)
      TLTV (HTLTV) ratio must be determined as follows: The value used to calculate
      the LTV/TLTV/HTLTV ratio Mortgage purpose Value Purchase transaction The value
      is the lesser of: ■ The “as completed” appraised value of the Mortgaged Premises;
      or Freddie Mac Single-Family Seller/Servicer Guide Chapter 4606 As of 05/06/26
      Page 4606-4 The value used to calculate the LTV/TLTV/HTLTV ratio Mortgage purpose
      Value ■ The total acquisition cost (i.e., the price paid for the Mortgaged Premises
      plus the cost of the eligible improvements) If the total acquisition cost is
      used, the Mortgage file must contain documentation of the costs used to calculate
      the total acquisition cost. “No cash-out” refinance used to finance eligible
      improvements The value is the “as completed” appraised value of the Mortgaged
      Premises. “No cash-out” refinance used to pay an Existing Debt The value is
      the appraised value of the Mortgaged Premises. (b) Underwriting The Mortgage
      must be an Accept Mortgage or a Manually Underwritten Mortgage. (c) Qualifying
      ratios for Manually Underwritten Mortgages For Manually Underwritten Mortgages,
      see Section 5401.1(e)(ii)(B) for additional requirements for calculating the
      monthly housing expense-to-income ratio and the monthly debt payment-to-income
      ratio.'
  judgment: false
