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Renovation Mortgages

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

FeatureDescription
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
  • Freddie Mac Home Possible® mortgage
  • Super conforming mortgages
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 Renovation Mortgages are calculated according to the requirements in Guide Chapter K33.12.
Underwriting
  • Loan Prospector Mortgages
  • Non-Loan Prospector Mortgages
  • 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
  • Renovation Mortgages 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
  • Refer to Guide Section 17.35(b) for special delivery instructions for Renovation Mortgages. The ULDD Data Points and valid values that must be delivered are determined by both (1) the type of mortgage (i.e., Renovation Mortgage), and (2) the type of loan documentation used for the mortgage.
Single-Family Seller/Servicer Guide
  • Find complete details on requirements for Construction Conversion and Renovation Mortgages in Guide Chapter K33.

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 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

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.

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