Newly Built Home Mortgages
Give your borrowers 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.
With this offering you can enhance your niche-marketing opportunities when you process Newly Built Home Mortgages as Home Possible® 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 |
Description |
| 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- and 30-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)
- Super conforming mortgages with applications dated on or after June 13, 2010
|
| Transaction Type |
- Purchase only
- If mortgage proceeds are used to replace an Interim Construction Financing, the transaction must meet the requirements of Chapter K33 of the Single-Family Seller/Servicer Guide (Guide)
|
| Maximum LTV Ratios (without secondary financing) |
- Values used to determine LTV, TLTV, and HTLTV for Mortgages for Newly Built Home Mortgages are calculated according to the requirements in section K33.12 of the Guide
|
| Underwriting |
- Loan Prospector Mortgages
- Non-Loan Prospector Mortgages
- Non-Loan Prospector Mortgages
- Effective for mortgages with application dates on or after June 13, 2010 and settlement dates on or after January 1, 2011:
- A borrower’s credit and capacity documentation must be dated no more than 120 days prior to the effective date of permanent financing
- If the settlement date is more than 120 days after the effective date of permanent financing, the Seller must obtain a new appraisal with at least an exterior-only inspection that meets Freddie Mac’s requirements
- All mortgages must meet the risk class and/or minimum Indicator Score requirements in Exhibit 25A, where applicable
|
| 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 |
- See Guide Exhibit 19 for details on applicable delivery fees.
|
| Special Delivery Requirements |
- Mortgages with application dates prior to June 13, 2010, originated under the 18-month age of documentation requirement must be delivered no later than December 31, 2010
- 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
|
| 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 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.
- Enhanced niche-marketing opportunities to meet your borrowers' needs when you process Home Possible 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 Mortgages with Newly Built Home Mortgages (Site-built only), and other Freddie Mac products.
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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.
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.
