Freddie Mac Single-Family Seller/Servicer Guide Section 4605.1 — HomeOne® Mortgages

Freddie Mac Single-Family Seller/Servicer Guide Section 4605.1 — HomeOne® Mortgages

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.

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