Properties with Energy Conservation Improvements
Freddie Mac's solution for energy-efficient home improvements.
Freddie Mac believes that reducing home utility costs places families in a better financial situation and helps preserve home affordability over time. Through our GreenCHOICE Mortgage offering, we are committed to facilitate the financing of energy efficient home improvements and energy efficient homes, helping more families across the United States attain and maintain home affordability.
|Eligible Mortgages and Loan Purpose||
|Eligible Property Types||
1- to 4-unit property types, including condos and manufactured homes and new and existing properties.
|Maximum LTV/TLTV/HTLTV Ratios||
|Maximum Available Energy Financing||
|Basic Energy and Water Efficiency Improvements||
Eligible basic energy and/or water efficiency improvements include the following:
|Appraisal and Energy Reports||
|Additional Underwriting Considerations||
|Credit Fees in Price||
Additional Energy Conservation Flexibilities
|Properties with Solar Panels||
|Housing Expense-to-income and Debt-to-income Flexibilities||
|Property Accessed Clean Energy (PACE) Obligations||
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.
- Combine the flexibilities of Home Possible Mortgages to offer borrowers additional affordable financing opportunities.
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
- Review Guide Chapter 4606 for detailed requirement on GreenCHOICE Mortgages.
- 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 other Pricing Identifier Terms.