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Manufactured Homes

Expanding homeownership opportunities to more borrowers

Freddie Mac is committed to purchasing mortgages secured by manufactured homes in support of our commitment to expand homeownership opportunities. Our requirements for manufactured homes are designed so that the mortgages we purchase are originated, underwritten and serviced to help qualified borrowers buy homes they can both afford and maintain.

Lenders need to understand the requirements for titling manufactured homes and perfecting liens on the manufactured home in each state where mortgages secured by manufactured homes are originated. This understanding will help better serve the needs of your borrowers, create more financing options for low- and moderate-income borrowers and expand your market opportunities.

If you are originating mortgages secured by manufactured homes, it is important that you review our complete requirements in Single-Family Seller/Servicer Guide (Guide) Chapter H33.

FeatureRequirements
Property Type
  • 1-unit primary residences
  • Second homes
  • Eligible properties must meet special requirements in Guide Section H33.2.
Eligible Mortgage Products
  • 15-, 20- and 30-year fixed-rate mortgages
  • 7/1 and 10/1 ARMs
  • Home Possible Mortgages® may be secured by manufactured homes, subject to conditions.
Transaction Type
  • Purchase
  • No cash-out refinance
  • Cash-out refinance
Maximum LTV Ratios (without secondary financing)
  • Must comply with special LTV ratios listed in Guide Section H33.3 (d) and (e).
Eligibility/Underwriting
  • All mortgages secured by manufactured homes must be submitted to Loan Prospector®.
  • For purchase transactions, a minimum down payment of five percent must come from borrower personal funds.
  • If the borrower owns the land on which the manufactured home is being permanently attached, the land may be used as an equity contribution subject to certain conditions
  • If the subject transaction involves trade equity from the borrower’s existing manufactured home, the requirements of Guide Section H33.5 (d) must be met.
  • A manufactured home adds a layer of collateral risk that must be considered when evaluating the overall risk of the mortgage using the “three Cs” (credit reputation, capacity and collateral). Sellers must consider this in evaluating the overall risk of the mortgage. See Guide Section 37.1 for more information.
Execution Options
  • Servicing-released Cash*
  • Servicing-retained Cash
  • WAC ARM Cash
  • Fixed-rate Guarantor
  • WAC ARM Guarantor
  • MultiLender Swap
* See our selling system availability matrix for a list of specific fixed-rate mortgages eligible for sale best efforts or mandatory, servicing released.
Delivery Fees
  • Special delivery fees will be assessed and billed in conjunction with the sale of mortgages secured by manufactured homes.
  • See Guide Exhibit 19 for details on these fees and all other applicable fees.
Special Delivery Requirements
  • Refer to Guide Section 17.31(b) for special delivery instructions for mortgages secured by manufactured homes.
Single-Family Seller/Servicer Guide
  • Refer to Guide Chapter H33.

 

Lender Benefits

Mortgages secured by manufactured homes help you:

  • Expand your homeownership opportunities to low- and moderate-income borrowers.
  • Meet your Community Reinvestment Act goals.
  • Streamline your process with Loan Prospector automated underwriting technology.

Benefits for Your Borrowers

Mortgages secured by manufactured homes help you borrowers:

  • Take advantage of conventional financing terms when you originate mortgages secured by manufactured homes legally classified as real property.
  • Leverage financing flexibility with a choice of fixed-rate, 7/1 ARMs or 10/1 ARMs.
  • Expand their homeownership options with Home Possible Mortgages.

For More Information

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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