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Newly Built Home Mortgages Checkmark
Expanded opportunities to finance newly constructed homes for your borrowers

Related Products

Give more of your more opportunities to purchase new homes with our Newly Built Home Mortgages for site-built and manufactured homes – a component of our Mortgages for Newly Constructed Homes offering. Newly Built Home Mortgages offer you and your borrowers 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 – and other new opportunities.

With this offering you can enhance your niche-marketing opportunities when you process Newly Built Home Mortgages as Home Possible® or Initial InterestSM Mortgages. Plus, you can process these loans using Loan Prospector® and profitably sell through our web-based selling system – giving you more reasons to make this offering part of your standard set of products.

Product Features

Feature

Requirements

Property Type
  • New 1- to 4-unit site-built homes
  • New 1-unit manufactured homes
  • Existing site-built or manufactured homes are not eligible
  • 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 (Site-built only) (non-seasoned)
  • Initial InterestSM Mortgages (Site-built only) (non-seasoned)

Transaction Type
  • Purchase only

Maximum LTV Ratios (without secondary financing)
  • Values used to determine LTV, TLTV, and HTLTV for Newly Built Home Mortgages are calculated according to the requirements in Section K33.12 of 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
  • D53 – Seasoned Mortgage for Newly Constructed Home

Single-Family Seller/Servicer Guide
  • Find complete details on requirements for Mortgages for Newly Constructed Homes in Guide Chapter K33.


Download a Newly Built Home Mortgages factsheet [PDF 186K] for more details.

Lender Benefits

  • Expanded options to drive more loan volume with Newly Built Home Mortgages available through the Single-Family Seller/Servicer Guide.
  • New flexibility that matches your borrowers' needs and assists in Gulf Coast rebuilding. You now have 18 months to process, underwrite, document, allow for construction and sell all Newly Built Home Mortgages – allowing for longer construction times to streamline the loan origination process for you and your borrowers.
  • Enhanced niche-marketing opportunities to meet your borrowers' needs when you process Home Possible Mortgages and Initial Interest Mortgages as Newly Built Home Mortgages (Site-built only).

Benefits for Your Borrowers

  • Mortgage options that meet your borrower's needs. Provide permanent financing for low down payment mortgages and lower initial payments when you combine the advantages of Home Possible and Initial Interest Mortgages with Newly Built Home Mortgages (Site-built only), and other Freddie Mac products.
  • A more flexible, streamlined loan origination process for your borrowers purchasing newly built homes.

Get More Information

Training Opportunities

Visit The Learning Center for 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.

© 2008 Freddie Mac