Coming Soon: Lower Cost and More Efficient Financing with Single Close
April 5, 2018
Lenders in the manufactured housing market will soon get an enhanced financing option they want and need. In April, through our Duty to Serve plan, we'll expand our documentation options for construction conversion mortgages, secured by manufactured homes titled as real property, to include an option for a single closing with integrated documentation (also known as single close).
Lenders will be able to close the financing for construction of a manufactured home (i.e., site preparation, purchase, setup and delivery) and permanent financing in one transaction. Once the home purchase and installation is complete, the loan seamlessly converts into permanent financing.
More Efficiency, Lower Cost
Currently, lenders must use separate documentation and conduct two closings for construction conversion mortgages secured by manufactured homes: one closing to fund the purchase, delivery and set-up of the home and a second closing to establish the permanent loan. This "two-close" process requires two loans to be processed and approved, two layers of closing cost fees, extra requirements for compliance and paperwork for two loans.
With single close, you'll save time and money by having only one loan closing, with one set of closing costs and fees, plus one appraisal and approval process. It’s just another way that we’re Reimagining the Mortgage Experience℠.
Review your state’s real property conversion guidelines to check your eligibility to use single close.
For More Information
- Look for details under Integrated Construction Conversion Documentation in our April
Single-Family Seller/Servicer Guide Bulletin.
- Contact your Freddie Mac representative.
- See Freddie Mac's Duty to Serve plan.