Experience Lower Cost and More Efficient Financing with Single Close
April 25, 2018
You told us you wanted single close construction conversion loans for manufactured housing, and we made it happen. Today, we announce that, through our Duty to Serve plan, we've expanded 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).
Expanding financing options for manufactured housing is a key component of our Duty to Serve plan. And with single close, we're doing just that. Now, lenders can 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
Before, lenders had to 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 required two loans to be processed and approved, two layers of closing cost fees, extra requirements for compliance and paperwork for two loans. Not anymore.
Today is a new day. 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 ExperienceSM.
Lenders can still finance their manufactured homes using two loan closings and separate documentation, if they choose. Determine the best option for your business, and 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.
- Check out our single close FAQs.
- See Freddie Mac's Duty to Serve plan.