Mortgages for 2- to 4-unit Properties
In many urban communities, 2- to 4-unit housing is the key affordable housing inventory for primary residences. Originating mortgages secured by these types of properties through Freddie Mac mortgage products makes it possible to serve a greater number of borrowers with diverse financial circumstances, and increase your Community Reinvestment Act (CRA)-eligible originations.
Originating Freddie Mac mortgages secured by 2- to 4-unit properties helps you reach into growing affordable markets, meeting the needs of more first-time homebuyers, families in underserved areas, and others, grow your origination volume with a full array of mortgage products to choose from when originating mortgages for 2- to 4-unit properties and leverage mortgages for 2- to 4-unit properties as another way to meet your CRA volume requirements.
Who are Mortgages for 2- to 4-unit Primary Residences for?
- Low- and moderate-income borrowers
- Borrowers in underserved communities
- Borrowers in urban areas
The information on this page is not part of, and is not a replacement or substitute for, the requirements found in the Freddie Mac Single-Family Seller/Servicer Guide and your other Purchase Documents.
- Eligible Mortgage Products
- Fixed-rate mortgages
- Most standard ARMs
- Home Possible Mortgages
- Seller-owned Modified Mortgages
- Seller-owned Converted Mortgages
- Financed Permanent Buydown Mortgages
- HUD Section 184 Native American Mortgages
- Super Conforming Mortgages
- Execution Options
- Servicing-retained Cash
- ARM Cash
- Fixed-rate Guarantor
- WAC ARM Guarantor
- MultiLender Swap
- Credit Fees
Post settlement Credit Fees in Price may apply, including the Number of Units Credit Fee in Price, based on the individual characteristics of the mortgage. See Guide Exhibit 19 for details on applicable fees.
- Property Type/Eligible Properties
2- to 4-unit owner-occupied primary residences, including condos and PUDs.
- Maximum LTV Ratios
- Maximum LTV ratios must comply with Single-Family Seller/Servicer Guide (Guide) Section 4203.4
- For LTV ratios for super conforming mortgages, see Guide Chapter 4603
- Minimum Indicator Score of 620 unless otherwise specified in the Guide.
- All mortgages must meet risk class and/or minimum Indicator Score requirements in Guide Exhibit 25A, where applicable.
- Maximum debt-to-income ratio of 45 percent for manually underwritten mortgages.
- Rental income from the other units can be added to your borrower’s total income to calculate housing expense and debt-to-income ratios.
- Refer to the Guide under the mortgage product type you wish to originate and sell to Freddie Mac.
- For LTV ratios for super conforming mortgages, see Guide Chapter 4603.
- Transaction Type
- No cash-out refinance
- Cash-out refinance
Growing Your Business
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Resources & Learning
Find training opportunities, self-study tools and resources to originate Refi Possible refinance offering.
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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.
CreditSmart® is a suite of educational resources designed to empower consumers with the skills and knowledge to assist them through every stage of their financial capability and homeownership journey.
Take advantage of the information we have gathered here to expand your efforts in reaching homebuyers in today’s changing marketplace.
MyHome by Freddie Mac®
Whether your borrowers rent, own, or plan to buy, we offer the resources to help make informed decisions and support their success.
The Freddie Mac Home Possible® mortgage offers more options and credit flexibilities than ever before to help your very low-to low-income borrowers attain the dream of owning a home with a down payment as low as 3%.