Skip to Page Content | Skip to Site Navigation | Skip to Section Navigation

Are You Ready to Expand Affordable Housing to Underserved Markets?

May 30, 2018

Millions of U.S. households are impacted by the current affordable housing crisis, spurred by a high demand but low supply of affordable single-family housing. Freddie Mac has developed a comprehensive Duty to Serve plan to make it easier for you to help these families finance manufactured and rural homes and preserve home affordability over time. But we’re not doing this alone. We’ll work with the mortgage industry, housing groups and other stakeholders to achieve our goals. Here's some of what we plan to do for each market.

Manufactured Housing 

  • Purchase more loans used to finance manufactured homes titled as real property.
  • Enhance current products and create new offerings to help lenders originate more real property loans on manufactured homes. In April 2018, we expanded our existing single close construction conversion financing to manufactured housing. Borrowers can now finance both the construction and purchase of a manufactured home titled as real property using single close
  • Conduct groundbreaking research to better understand the challenges facing manufactured homes titled as personal property (chattel).
  • Provide consumer education and resources to help borrowers navigate the real and personal property loan process, and help increase sustainable homeownership.

Rural Housing 

  • Increase loan purchases from the rural markets, including small financial institutions. 
  • Develop a new, robust renovation mortgage product to help rehabilitate aging homes. 
  • Expand financing options for rural borrowers. 
  • Increase borrower access to education and resources by leveraging partnerships with the Federation of Appalachian Housing Enterprises (FAHE), HOPE Enterprise Corporation, NextSteps, NextJob, Community Development Corporation of Brownsville (CDCB) and South Dakota’s Homebuyer Education Resource Organization (HERO). 

Affordable Housing Preservation

  • Facilitate financing of energy efficiency improvements through first lien mortgages.
  • Test and optimize innovative product features and underwriting enhancements through pilot programs aimed to preserve affordability of homes. 
  • Develop guidelines to facilitate new mortgage originations for properties under community land trusts and other shared equity programs.
  • Conduct research on the impact of energy-efficient improvements on property values and mortgage performance and publish this research in 2019. We’ll also conduct research on shared equity programs to better understand this market and identify new opportunities to support it.
  • Provide borrower education and resources for lenders about Freddie Mac shared equity products and energy efficiency financing options. 

For More Information

  • Visit our Duty to Serve web page
  • Read our Duty to Serve plan
  • Check out our single close video
  • Contact your Freddie Mac Account Representative on call the Freddie Mac Customer Support Contact Center (800-FREDDIE)