Properties with Energy Conservation Improvements
Flexibilities to match the borrower's financing needs.
Freddie Mac supports our Sellers offering financing to borrowers who are planning energy efficient and renewable energy home improvements. We finance properties with such improvements through any mortgage product and property type eligible under our Single-Family Seller/Servicer Guide (Guide).
Our Guide requirements, together with the additional flexibilities specific to energy efficient features, are designed to help you meet the needs of borrowers looking for affordable financing for properties with energy-saving enhancements.
|Eligible Mortgages and Transaction Types||
All properties including manufactured homes and new construction.
|Additional Underwriting Flexibilities||
|Delivery fees and requirements||
Match the needs of your borrowers by taking advantage of our Guide requirements:
- Finance energy efficient properties with any Guide product, property type and financing term up to 30 years to provide greater affordability for borrowers.
- Offer more flexibility to your borrowers to finance energy efficient properties.
- No maximum percentage of the "as completed" value of energy efficient features to be financed.
- Higher debt-to-income and housing expense-to-income ratios for manually underwritten loans.
- Secondary financing including Affordable Seconds allowed.
- Our Guide permits either energy reports or appraisal indicating the efficiency.
Benefits for Your Borrowers
Our special considerations for energy conservation mortgages help your borrowers:
- Qualify for greater purchasing power.
- Finance the cost of energy improvements on their homes over the life of the loan.
- Enjoy the benefits of an energy efficient home such as lower utility costs and increased home comfort.
Get More Information
- Call your Freddie Mac representative.
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.