Manufactured Homes Mortgages
Expand homeownership opportunities to more borrowers with mortgages secured by manufactured homes.
Mortgages secured by manufactured homes can help expand homeownership opportunities for your low- and moderate-income borrowers and meet your Community Reinvestment Act (CRA) goals.
Freddie Mac's mortgage purchase requirements for manufactured homes are designed to help qualified borrowers buy homes they can both afford and maintain. Loan Product Advisor® (LPA®) can help you quickly identify purchase eligibility for a mortgage secured by a manufactured home.
Also, a mortgage secured by a multi-wide manufactured home as the primary dwelling, including a CHOICEHome®, is eligible with an accessory dwelling unit (ADU) or a manufactured home ADU. ADUs can provide valuable benefits to borrowers, including additional living space for family or renters.
Learn more at Single-Family Seller/Servicer Guide (Guide) Chapter 5703.
Who are Manufactured Homes Mortgages for?
- Homeowners exploring options to downsize.
- Borrowers seeking conventional financing terms for a manufactured home.
- Low- to moderate-income first-time homebuyers seeking low down payment mortgage solutions.
Disclaimer
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
Borrower Type or Need Solution Home purchase or refinance for any qualified homebuyer or homeowner Conventional mortgage Low down payment; ≤ 80% area median income Home Possible® CrossModTM Home CHOICEHome® First Time homebuyer - HomeOne®(CHOICEHome only)
- HFA Advantage®
New construction Construction conversion:
- Single close
- Two-time close
- Modification
Renovation (Including the addition of an Accessory Dwelling Unit) - CHOICERenovation®
- CHOICEReno eXPress®
Energy-efficient Improvements GreenCHOICE Mortgages® Native American member of a federally recognized tribe HeritageOneSM Shared Equity homeownership CLT Mortgage (CHOICEHome only) Income-based resale-restricted property mortgage (CHOICEHome only) - 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 in Guide Exhibit 17S for a list of specific fixed-rate mortgages eligible for sale, best efforts, or mandatory servicing release.
- 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 5703.8 (a) and 5703.12(g)(i) for CHOICEHome mortgages.
- Eligibility/Underwriting
- All mortgages secured by manufactured homes must be submitted to Loan Product Advisor (LPA®).
- Mortgages secured by a single-wide manufactured home do must receive a risk class of “Accept” by LPA.
- Mortgages secured by a multi-wide manufactured home do not receive a risk class of "Accept" must be manually underwritten.
- 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 Sections 5102.1 and 5102.2.
- 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 5703.7(b)(ii).
- Appraisal requirements for manufactured homes can be found in Guide Section 5703.9 and title and lien-related requirements are outlined in Guide Section 5703.4.
- Appraisal requirements for CHOICEHome in Guide Section 5703.12(e)
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
- Leasehold estates must follow Guide Section 5703.4 and 5706.6
- Transaction Type
- Purchase. See Guide Section 5703.8(a) for guidance on LTV calculation for:
- New Manufactured Home
- Existing Manufactured Home
- Existing Manufactured Home that has never been occupied in a new or existing Manufactured Home subdivision and sold by a builder or a developer or a manufacturer acting as a developer
- Construction Conversion Mortgage secured by a Manufactured Home
- "No cash-out" refinance; See Guide Section 5703.8 (b)(ii)
- Cash-out refinance; See Guide Section 5703.8 (b)(ii)
- 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 5703.8(a) for guidance on LTV calculation for:
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