Manufactured Homes Mortgages
Expand homeownership opportunities to more borrowers with mortgages secured by manufactured homes. Freddie Mac's requirements for manufactured homes are designed so that the mortgages we purchase are originated, underwritten and serviced to help qualified borrowers buy homes they can both afford and maintain.
It's important that lenders understand the requirements for titling manufactured homes and perfecting liens on the manufactured home in each state where mortgages secured by manufactured homes are originated. This understanding will help create more financing options for low-and moderate-income borrowers.
To originate mortgages secured by manufactured homes, it is important that you review our complete requirements in Single-Family Seller/Servicer Guide (Guide) Chapter 5703.
Mortgages secured by manufactured homes help you expand your homeownership opportunities to low- and moderate-income borrowers, meet your Community Reinvestment Act goals and streamline your process with Loan Product Advisor® (LPASM) automated underwriting technology.
Check out our innovative mortgage, CHOICEHome®, to help your borrowers gain access to high-quality, affordable manufactured homes.
Who are Manufactured Homes Mortgages for?
- Low-and moderate-income borrowers
- Borrowers who want conventional financing terms for manufactured homes.
- People looking at Home Possible® mortgages and CHOICEHome mortgages.
The information on this page is not part of, and is not a replacement or substitute for, the requirements in the Freddie Mac Single-Family Seller/Servicer Guide and your other Purchase Documents.
Product Features
- Eligible Mortgage Products
- Home Possible® mortgage may be secured by manufactured homes, subject to conditions.
- Home Possible® mortgage secured by manufactured homes may be originated with an Affordable Second, subject to conditions
- For CHOICEHome, the mortgage must be a fixed-rate mortgage or a 5/6-month, 7/6-month or 10/6-month ARM; provided, however, Home Possible® Mortgages, Home One® Mortgages and HeritageOne℠ Mortgages must be fixed-rate mortgages.
- Home Possible® mortgage may be secured by manufactured homes, subject to conditions.
- Occupancy
- A mortgage secured by a multi-wide manufactured home must be a primary residence or a second home.
- A mortgage secured by a single-wide manufactured home must be a primary residence.
- An investment property mortgage secured by a manufactured home is not eligible for sale to Freddie Mac.
- Execution Options
- Servicing-released Cash
- Servicing-retained Cash
- ARM Cash
- Fixed-rate Guarantor
- WAC ARM Guarantor
- MultiLender Swap
- See our Loan Selling Advisor® availability matrix for a list of specific fixed-rate mortgages eligible for sale best efforts or mandatory, servicing released.
- Credit Fees
- Credit Fees in Price will be assessed and billed in conjunction with the sale of mortgages secured by manufactured homes.
- See Guide Exhibit 19 for details on these fees and all other applicable fees.
- Delivery Requirements
Refer to Guide Section 6302.25(b) for special delivery instructions for mortgages secured by manufactured homes.
- Maximum LTV Ratios
Must comply with LTV ratios listed in 5703.9 (a) and 5703.16(e)(i) for CHOICEHome mortgages.
- Eligibility/Underwriting
- Property eligibility for manufactured homes is outlined in Guide Section 5703.5
- All mortgages secured by manufactured homes must be submitted to LPA.
- Mortgages secured by a single-wide manufactured home must be assessed as “Accept” by LPA.
- Mortgages secured by a multi-wide manufactured home may receive a “Caution” or an assessment status of invalid, ineligible or incomplete and must be manually underwritten as outlined in the Guide.
- For manufactured homes on leasehold estates:
- Sellers must obtain Freddie Mac’s written approval before selling mortgages secured by a manufactured home on a leasehold estate.
- Mortgages must be a 1-unit, multi-wide manufactured home (single-wide manufactured homes are ineligible)
- Mortgages must be assessed as “Accept” by LPA. Property eligibility requirements are outlined in Guide Section 5706.2
- If the borrower owns the land on which the manufactured home is being permanently attached, the land equity may be used as an equity contribution subject to certain conditions.
- If the subject transaction involves trade equity from the borrower's existing manufactured home, the requirements of Guide Section 5703.8(b)(ii) must be met.
- Appraisal requirements for manufactured homes can be found in Guide Section 5703.10 and title and lien-related requirements are outlined in Guide Section 5703.4.
- Leasehold estates must follow Guide Section 5703.4 and 5706.7
- Appraisal requirements for CHOICEHome in Guide Section 5703.16(h)
- A manufactured home adds a layer of collateral risk that must be considered when evaluating the overall risk of the mortgage using the "three Cs" (credit reputation, capacity, and collateral). Sellers must consider this in evaluating the overall risk of the mortgage. See Guide Section 5102.1 & 5102.2 for more information.
- Transaction Type
- Purchase. See Guide Section 5703.9(a) and 5703.9(b) for guidance on LTV calculation for:
- Newly-built manufactured homes
- Previously-owned manufactured homes affixed to a permanent foundation
- Existing manufactured homes in a new or existing manufacture home subdivision
- No cash-out refinance
- Cash-out refinance
- A cash-out refinance mortgage may only be secured by a multi-wide manufactured home. A “cash-out” refinance loan on a single-wide manufactured home is not eligible for sale to Freddie Mac.
- Purchase. See Guide Section 5703.9(a) and 5703.9(b) for guidance on LTV calculation for:
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