Freddie Mac Brings Conventional Financing to a New Generation of Manufactured Homes
McLEAN, Va., Nov. 30, 2018 (GLOBE NEWSWIRE) — Freddie Mac (OTCQB: FMCC) today announced CHOICE HomeSM conventional financing for manufactured housing to help increase the availability of the quality affordable homes that borrowers want, while providing lenders with the innovative financing options they need. Today’s manufactured homes can deliver outstanding quality at prices that are up to 50 percent less per square foot than conventional site-built homes. These savings can enable more Americans to own their own home, even in the face of an ever-widening housing affordability gap.
“Finding a home is more difficult than ever because of the ongoing housing supply shortage in many parts of the country, especially when looking for a home at a lower price point,” said Mike Dawson, vice president of Single-Family Affordable Lending Strategy and Policy at Freddie Mac. “Currently there are more than 22 million families living in factory-built housing, and with that number expected to grow, there’s an opportunity for factory-built homes to address the housing supply shortage and quality housing overall. This new generation of manufactured housing might just be the best option for first-time homebuyers, Millennials, and empty-nesters looking to downsize.”
Freddie Mac is conducting a two-year CHOICEHome pilot to bring conventional loan financing to factory-built homes. These homes have features such as permanent foundations and pitched roofs. Many of these homes also come with energy-saving features like Energy Star Qualified Low-E windows, programmable thermostats and minimum insulation values.
Freddie Mac will treat loans secured by CHOICEHome like loans secured by single-family site-built homes. If a factory-built home meets certain specifications it will be granted a CHOICEHome certification and will be eligible for CHOICEHome financing. This includes many Freddie Mac conventional loan products, including HomeOne and Home Possible® mortgages. Appraisers will be able to use site-built housing as a comparable for valuation.
Manufacturers and lenders must follow HUD-code guidelines for the home construction and siting of the home in order to meet CHOICEHome eligibility, and lenders must follow local and state guidelines for manufactured housing titled as real property.
CHOICEHome is part of Freddie Mac’s Duty to Serve plan, which focuses on supporting underserved markets by financing more rural and manufactured housing and preserving more affordable housing for homebuyers and renters nationwide. The plan includes increased loan purchases in these three underserved markets as well as loan products, ground-breaking research and expanded consumer education. The company is working with the mortgage industry, community nonprofits, all levels of government and other dedicated organizations to make a positive difference for very low-, low- and moderate-income households.
About Freddie Mac
Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we’ve made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders, investors and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac’s blog.