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Mortgages for Newly Constructed Homes
Expanded permanent financing options for your new construction borrowers

When it comes to borrowers seeking permanent financing for newly constructed homes, look to Freddie Mac first to expand opportunity where you need it. Our requirements through our Mortgages for Newly Constructed Homes offering provides greater flexibility, including permitting 18 months between the date of the earliest credit, capacity or collateral document and the settlement date – allowing for longer construction times.

With this offering, you'll have more new opportunities for your customers securing permanent financing for newly built homes, construction conversions and renovations – all components of the Mortgages for Newly Constructed Homes offering.

Plus, Mortgages for Newly Constructed Homes gives you more ways to enhance your relationships with new home developers. This offering lets you provide homebuilders the satisfaction of knowing they have more time to complete a new home construction or renovation project – giving them better opportunities to accommodate any uncertainties that may occur.

We've also expanded your Loan Prospector® assessment capabilities, and matched enhancements in the selling system, to offer you a full set of competitive secondary market options, with more opportunities to generate more loans, of more types, for more borrowers.

Product Features

Feature Requirements
Property Type
  • 1- to 4-unit site-built homes
  • 1 unit manufactured homes
  • Primary residence
  • Investment property
  • Second homes
Eligible Mortgage Products
  • 15-, 20-, 30- and 40-year fixed-rate mortgages
  • Most ARMs eligible for sale to Freddie Mac
  • 5- and 7-year balloon/reset mortgages (non-seasoned)
  • Home Possible Mortgages® (Newly Built Home Mortgages – Site-built only; non-seasoned)
  • Initial InterestSM Mortgages (Newly Built Home Mortgages – Site-built only; non-seasoned)
Transaction Type
  • Purchase
  • No cash-out refinance (Construction Conversion and Renovation Mortgages)
  • Cash-out refinance (Construction Conversion and Renovation Mortgages)
Maximum LTV Ratios (without secondary financing)
  • Values used to determine LTV, TLTV, and HTLTV for Mortgages for Newly Constructed Homes are calculated according to the requirements in Section K33.12 for the Single-Family Seller/Servicer Guide.
Underwriting
  • Loan Prospector Mortgages
  • Non-Loan Prospector Mortgages
Execution Options
  • Servicing-released Cash
  • Servicing-retained Cash
  • Fixed-rate Guarantor
  • WAC ARM Guarantor
  • Mortgages for Newly Constructed Homes, with a Settlement Date more 12 months after the Effective Date of Permanent Financing are not eligible for sale under MultiLender Swap
Delivery Fees
Special Delivery Requirements
  • Special characteristics codes must be delivered on Form 11 or 13SF as applicable: see Guide Section 17.38.1
  • D49 – Newly Built Home Mortgages - Site-built
  • D50 – Newly Built Home Mortgages - Manufactured Home
  • D51 – Construction Conversion Mortgages - Site-built
  • D51 and D69 – Renovation Mortgages - Site-built (both SCCs must be delivered)
  • D52 – Construction Conversion Mortgages - Manufactured Home
  • D53 – Seasoned Mortgage for Newly Constructed Home
  • Reference Code: 0013 (delivered with Construction Conversion/Renovation Mortgages when data must be entered into the mod/conv field)
Single-Family Seller/Servicer Guide
  • Find complete details on requirements for Mortgages for Newly Constructed Homes in Guide Chapter K33.


Download a Mortgages for Newly Constructed Homes factsheet [PDF 189K] for more details.

Lender Benefits

  • Expanded options to drive more loan volume with newly built, construction conversion and renovation mortgages, all available through the Single-Family Seller/Servicer Guide.
  • New flexibility that matches your borrowers' needs and assists in Gulf Coast rebuilding, with 18 months to process, underwrite, document, allow for construction or renovation, and sell all Mortgages for Newly Constructed Homes allowing for longer construction times and a streamlined loan origination process.
  • Enhanced niche-marketing opportunities to meet your borrowers' needs when combined with a variety of other Freddie Mac mortgages, including 40-year fixed-rate mortgages, Alt 97, Home Possible® and Initial InterestSM Mortgages.

Benefits for Your Borrowers

  • Expanded options for offering permanent financing when your borrowers purchase or refinance a newly constructed site-built or manufactured home, including renovations to their existing site-built homes.
  • A more flexible, streamlined loan origination process for your borrowers, whether they are purchasing or refinancing a newly constructed home.

Get More Information

Training Opportunities

Visit The Learning Center for Mortgages for Newly Constructed Homes training resources. You can get information on live and recorded web conferences, access to classroom-style workshops and self-study tools – all designed to help you stay competitive, serve more borrowers and make it easier to do business with us.

The information in this document is not a replacement or substitute for information found in the Single-Family Seller/Servicer Guide and/or the terms of your Master Agreement and/or Master Commitment.

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