Properties with Energy Conservation Improvements
Flexibilities to meet the borrower's financing needs.
This page reflects the new requirements related to properties with solar panels as announced in Single-Family Seller/Servicer Guide Bulletin 2016-20. The requirements are effective for mortgages with settlement dates on and after March 1, 2017.
Freddie Mac supports our Sellers offering financing options to borrowers who are planning energy-efficient and renewable energy home improvements. We purchase mortgages secured by properties with such improvements through any mortgage product and property type eligible under our Single-Family Seller/Servicer Guide (Guide).
Our Guide requirements, including the additional flexibilities specific to energy efficient features, are designed to help you meet the needs of borrowers looking for affordable financing for energy-saving enhancements.
|Eligible Mortgages and Transaction Types||
All property types including manufactured homes and new and existing properties.
|Property Assessed Clean Energy (PACE) Obligations||
|Properties with Solar Panels||
|Credit Fees in Price and Requirements||
Meet the needs of your borrowers by taking advantage of our Guide requirements:
- Finance energy efficient improvements 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 improvements.
- No maximum percentage of the "as completed" value of energy efficient features to be financed.
Benefits for Your Borrowers
Our special considerations for energy conservation mortgages help your borrowers:
- Enjoy the benefits of an energy efficient home, which may include lower utility costs and increased home comfort.
- Finance the cost of energy improvements on their homes over the life of the loan.
- Qualify for greater purchasing power despite higher debt-to-income and housing expense-to-income ratios for manually underwritten loans.
Get More Information
- Call your Freddie Mac representative.
- Visit the following pages for industry resources related to properties with energy efficient features:
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.