Freddie Mac HomeSteps: Buying a Freddie Mac Home

HomeSteps is Freddie Mac’s program for selling homes it acquired through foreclosure on Freddie Mac-backed loans, listed on HomeSteps.com and the MLS and bought through a real estate agent. Under its First Look initiative, only owner-occupant buyers, public entities and nonprofits can have offers considered during a home’s first 30 days on the MLS; investor offers are considered after that, according to HomeSteps. You don’t need to be a first-time buyer. This guide walks through the process and what to check.

Who can buy during First Look?

• Owner-occupants buying a primary residence. The buyer and the buyer’s agent sign an Agreement of Purchaser (Primary Residence) affirming the buyer will live in the home.
• Public entities and their designated partners.
• Nonprofits and Neighborhood Stabilization Program grantees doing community stabilization work, who sign a different agreement and show proof of status.

Multifamily homes are excluded from First Look. Investors can still submit offers to the listing agent during the window, but HomeSteps considers them only after the 30 days end. Check the MLS or ask the listing agent how many days remain. Investors weighing a HomeSteps home against other bank-owned property can use the framework in our guide to investing in bank-owned homes.

Signing the owner-occupant agreement is a promise, not a formality. If you won’t live in the home as your primary residence, don’t sign it: misstating occupancy to get First Look priority can be treated as fraud. Read the agreement for the occupancy terms it requires, and ask the listing agent if anything is unclear.

How to buy a HomeSteps home

1. Work with a real estate agent. Any licensed agent can submit an offer to the HomeSteps listing agent.
2. Check eligibility. First Look homes are marked on HomeSteps.com; your agent can confirm with the listing agent.
3. Get financing in place that fits the home’s condition, or proof of funds.
4. Submit your offer with the occupancy agreement if you’re an owner-occupant.
5. Negotiate, inspect and close under Freddie Mac’s addenda and deadlines.

Condition and inspections

HomeSteps homes are sold as-is, and as a seller that acquired the home by foreclosure, Freddie Mac isn’t required to give California’s Transfer Disclosure Statement (Civil Code §1102.2) or the natural hazard disclosure statement (Civil Code §1103.1). Plan to order your own inspections and a natural hazard report. Vacant homes often hide plumbing damage from winterization, roof leaks, pest damage and unpermitted additions. Use our due diligence checklist for bank-owned homes to cover them.

What to check in a vacant Freddie Mac home

Most HomeSteps homes have been empty for some time before they’re listed. Build these checks into your inspection period:

• Utilities and winterization. Ask whether the water, gas and power can be turned on for inspections. If the plumbing was winterized, have it de-winterized and pressure-tested before you remove contingencies.
• Water damage and mold. Look under sinks, in the attic and crawl space, and around windows and the roof.
• Missing items. Appliances, fixtures and sometimes wiring or copper pipe disappear from vacant homes. Note what’s missing and price it in.
• Permits. Compare the home with the county’s permit records; unpermitted additions and garage conversions are common.
• Sewer or septic. Order a sewer lateral video inspection or a septic inspection, depending on the property.
• HOA status. If there’s an HOA, ask for its documents and confirm the dues are current and no special assessment is pending.

Financing a HomeSteps purchase

Any qualified loan can be used if the home meets the lender’s property standards. For homes needing work, owner-occupants can look at an FHA 203(k) loan, where the Limited version now covers up to $75,000 of repairs, or a Fannie Mae HomeStyle renovation loan; investors usually use cash or private financing. Compare the options in our REO financing guide.

Tips for a HomeSteps offer

• Move early. If you’ll live in the home, the First Look window is when you face the least competition.
• Support your price with comparable sales and a repair estimate.
• Keep contingencies clean and within Freddie Mac’s deadlines.
• Read the addenda for closing deadlines, extension fees and what the seller won’t do.

HomeSteps compared with HomePath and HUD

All three programs sell foreclosed homes from government-backed loans and favor owner-occupants first. The differences are in the details: HUD takes online bids through HUD-registered brokers and can pay up to 3% of financing and closing costs; Fannie Mae’s HomePath has a similar first-look window and has offered first-time buyers closing-cost help through its Ready Buyer program; HomeSteps runs a 30-day First Look through regular agent offers. Read Fannie Mae HomePath and buying HUD homes for each program’s rules.

HomeSteps homes in the North Bay

Freddie Mac REOs appear only occasionally in Sonoma, Napa and Marin, because they depend on foreclosures of Freddie Mac-backed loans in each area. Foreclosures are rising from low levels: ATTOM counted 2,644 California bank repossessions in the first half of 2026 (ATTOM). A saved search that flags new bank-owned listings is the practical way to catch them during First Look.

Questions buyers ask

Do I have to be a first-time buyer to use First Look?

No. HomeSteps says you don’t need to be a first-time buyer as long as the home will be your primary residence.

Can investors buy HomeSteps homes?

Yes. Investor offers are considered after the first 30 days on the MLS, if the home hasn’t sold.

Is HomeSteps the same as Freddie Mac’s mortgage programs?

No. HomeSteps sells homes Freddie Mac owns. Freddie Mac’s mortgage programs are offered through lenders, and you can use other financing to buy a HomeSteps home.

Can I use an FHA loan on a HomeSteps home?

Yes, if the home meets FHA’s property standards. A home that needs major repairs may need a 203(k) renovation loan or cash instead.

Will Freddie Mac fix problems found in inspection?

Usually not. Expect to buy as-is and negotiate on price if the inspection finds something significant.

Want alerts for new HomeSteps and other bank-owned listings? Contact us, and see our REO and short sale buyer’s guide and the other bank-owned home guides.

Sources & notes

• Freddie Mac HomeSteps: First Look initiative
• Civil Code §1102.2; Civil Code §1103.1
• ATTOM: midyear 2026 foreclosure report

Program rules change; check the listing and HomeSteps.com for current terms. This is general information, not lending advice. Last reviewed October 2026 by Matthew Martinez.