Manufactured Home Mortgage Requirements & Eligibility
What are the requirements and eligibility considerations for lenders to know?
Freddie Mac purchases mortgages secured by manufactured homes built in accordance with the Manufactured Home Construction and Safety Standards of June 1976, commonly known as the HUD Code. Selling mortgages secured by manufactured homes to Freddie Mac provides you with conventional secondary market execution, Loan Product Advisor® (LPA®) support and a broad set of eligible loan products, including Home Possible®, CHOICEHome® and construction to permanent financing.
Manufactured home mortgages can help you serve low- and moderate-income borrowers and meet Community Reinvestment Act (CRA) goals.
What Qualifies as a Manufactured Home?
A manufactured home is a factory-built dwelling constructed on or after June 15, 1976, in accordance with the HUD Code (24 C.F.R. Part 3280). It’s secured on a permanent, nonremovable steel frame or chassis and built as a single-section or in multiple sections. Manufactured homes must be titled as real property and permanently affixed to a foundation for the mortgage to be eligible for sale to Freddie Mac.
Note: Mobile homes (built before June 15, 1976) and modular homes (built to state or local building codes, not the HUD Code) are not manufactured homes under Freddie Mac's definition. For financing purposes, modular homes are generally treated as site-built single-family homes; mobile homes are ineligible for Freddie Mac financing.
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 to Permanent:
- 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 to Permanent 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:
Single-Section vs. Multi-Section: Quick Eligibility Reference
Many of Freddie Mac's eligibility rules differ depending on whether the home is a single-section or multi-section dwelling. Use the table below as a reference and refer to Guide Chapter 5703 for complete requirements.
| Feature | Single-Wide | Multi-Wide |
|---|---|---|
| Loan Product Advisor® (LPA®) Requirement | Must receive "Accept" risk class | Caution/Invalid/Ineligible must be manually underwritten |
| Occupancy | Primary residence only | Primary residence or second home |
| Cash-out refinance | Not eligible | Eligible |
| Leasehold estate | Not eligible | Eligible (with Freddie Mac written approval) |
| Investment property | Not eligible | Not eligible |
| LTV limits | See Guide Section 5703.8(a) | See Guide Section 5703.8(a) For CHOICEHome®, see Guide Section 5703.12(g)(i) |
Eligible Mortgage Products
The following mortgage products are available for manufactured homes. Eligibility may vary by home type (single-section vs. multi-section) and whether the property qualifies as a CHOICEHome®. See the individual product pages for complete requirements.
| Borrower Need / Scenario | Eligible Product |
|---|---|
| Purchase or refinance, any qualified borrower | Conventional mortgage |
| Low down payment; borrower income ≤80% AMI | Home Possible® |
| First-time homebuyer, low down payment | HomeOne® (CHOICEHome® only) | HFA Advantage® |
| CrossMod® / CHOICEHome-certified factory-built home | CHOICEHome mortgage |
| New manufactured home construction | Construction to permanent mortgage (single-close or two-close) |
| Renovation, including ADU addition | CHOICERenovation® | CHOICEReno eXPress® |
| Energy-efficient improvements | GreenCHOICE Mortgages® |
| Native American borrower, tribal land | HeritageOne® |
| Shared equity / community land trust | Community land trust (CLT) mortgage (CHOICEHome only) |
Underwriting & Eligibility Requirements
All mortgages secured by manufactured homes must be submitted to Loan Product Advisor® (LPA®). The required outcome from LPA depends on the property type:
- Single-section manufactured homes: Mortgages must receive a risk class of "Accept" from LPA. Manual underwriting is not available for single-wide loans.
- Multi-section manufactured homes: Mortgages that receive "Accept" proceed under standard automated underwriting system (AUS) guidelines. Mortgages that receive "Caution" or an assessment status of Invalid, Ineligible or Incomplete must be manually underwritten per Guide Topics 5100–5500 and must meet the minimum Indicator Score in Guide Exhibit 25.
Collateral risk: A manufactured home adds a collateral risk component that must be evaluated as part of the overall three-C analysis (credit reputation, capacity, and collateral). See Guide Sections 5102.1 and 5102.2 for details.
Land equity and trade equity: If the borrower owns the land on which the home will be permanently affixed, land equity may be used as an equity contribution subject to applicable conditions. If the transaction involves trade equity from the borrower's existing manufactured home, see Guide Section 5703.7(b)(ii).
Appraisal and title: Appraisal requirements are in Guide Section 5703.9. CHOICEHome appraisal requirements are in Guide Section 5703.12(e). Title and lien requirements are in Guide Section 5703.4.
Eligible Transaction Types
- Purchase (new, existing, or never-occupied): See Guide Section 5703.8(a) for LTV calculation guidance by scenario.
- Construction to Permanent Mortgage: Single-close and two-close options are both available. See Guide Section 4602.1 and the Construction to Permanent workflow page.
- "No cash-out" refinance: Eligible for both single-wide and multi-wide. See Guide Section 5703.8(b)(ii).
- Cash-out refinance: Eligible for multi-section only and does not include CHOICEHome. See Guide Section 5703.8(b)(ii).
Delivery & Credit Fees
Mortgages secured by manufactured homes carry specific delivery requirements and credit fees. Refer to the following before delivering:
- Delivery instructions: See Guide Section 6302.25(b) for special delivery requirements specific to manufactured home mortgages.
- Credit fees in price: Applicable credit fees are detailed in Guide Exhibit 19. These are assessed and billed in conjunction with each sale. Credit fee caps are eligible if manufactured home is a primary residence and AMI is less than 100%. Details are in Guide Exhibit 19a.
- Execution options: Eligible execution options include Servicing-Released Cash, Servicing-Retained Cash, ARM Cash, Fixed-Rate Guarantor, WAC ARM Guarantor and MultiLender Swap. See Guide Exhibit 17S for availability by loan type.
Manufactured Homes on Leasehold Estates
Single-section CHOICEHome properties are eligible for leasehold.
Multi-section manufactured homes on leasehold estates may be eligible for sale to Freddie Mac, subject to the following conditions:
- Sellers must obtain Freddie Mac's written approval before selling mortgages secured by a manufactured home on a leasehold estate.
- The mortgage must be secured by a 1-unit, multi-section manufactured home – including a CHOICEHome. Single-section homes on leasehold estates are not eligible.
- LPA must assess the mortgage as "Accept."
- Property eligibility requirements are in Guide Section 5706.2. Leasehold estate requirements are in Guide Sections 5703.4 and 5706.6.
Accessory Dwelling Unit (ADU) Eligibility with Manufactured Homes
A mortgage secured by a multi-section manufactured home — including a CHOICEHome — as the primary dwelling may be eligible when an accessory dwelling unit (ADU) or a manufactured home ADU is also present on the property. ADUs can provide additional value for borrowers through supplemental rental income or additional living space. Confirm eligibility in Guide Chapter 5703.
Resources for Borrowers
Reaching and educating borrowers – and helping them find the right mortgage – is essential for your business. Freddie Mac provides an array of materials you can share with your clients and business prospects.