Renovation Mortgages

Expand permanent financing opportunities for more of your borrowers with our Renovation Mortgages for site-built homes – a component of our Mortgages for Newly Constructed Homes offering.

With Renovation Mortgages you can offer more of your borrowers the permanent financing options they need to repair, restore, rehabilitate or renovate their existing site-built homes.

Product Features

Feature	Description
Property Type	Existing 1- to 4-unit site-built homes 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) Super conforming mortgages with application dates on or after June 13, 2010
Transaction Type	Purchase No cash-out refinances Cash-out refinances 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 Constructed Homes are calculated according to the requirements in Chapter K33.12 of the Guide
Underwriting	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 D51 and D69 – Renovation Mortgages - Site-built (both SCCs must be delivered)
Single-Family Seller/Servicer Guide	Find complete details on requirements for Mortgages for Newly Constructed Homes in Guide Chapter K33.

Download a Renovation Mortgages factsheet for more details.

Lender Benefits

Expanded options to drive more loan volume with Renovation Mortgages available through the Single-Family Seller/Servicer Guide.
Enhanced niche-marketing opportunities to meet your borrowers' needs when you process many of our popular, low down payment mortgages as Renovation Mortgages.

Benefits for Your Borrowers

Mortgage options that meet your borrowers' needs. Offer the financing flexibilities your borrowers need when you combine renovation mortgages with many other Freddie Mac products, including low down payment mortgages.
Flexibility when securing Permanent Financing. Our requirements for eligible borrowers on Renovation Mortgages allow the removal of a co-borrower, or the addition of a related person to the permanent financing under specific circumstances.

Get More Information

Call your Freddie Mac representative
Download a Renovation Mortgages factsheet

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.