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Mortgages for Newly Constructed HomesExpanded permanent financing options for your new construction borrowers

When it comes to borrowers seeking permanent financing for newly constructed homes, look to our Mortgages for Newly Constructed Homes offering for greater flexibility, including permitting 18 months between the date of the earliest credit, capacity or collateral document and the settlement date – allowing for longer construction times.

With this offering, you'll have more new opportunities for your customers securing permanent financing for newly built homes, construction conversions and renovations – all components of the Mortgages for Newly Constructed Homes offering.

Plus, Mortgages for Newly Constructed Homes gives you more ways to enhance your relationships with new home developers. This offering lets you provide homebuilders the satisfaction of knowing they have more time to complete a new home construction or renovation project – giving them better opportunities to accommodate any uncertainties that may occur.

We've also expanded your Loan Prospector® assessment capabilities, and matched enhancements in the selling system, to offer you a full set of competitive secondary market options, with more opportunities to generate more loans, of more types, for more borrowers.

Product Features

Feature	Description
Property Type	1- to 4-unit site built homes 1-unit manufactured homes (Newly Built Home Mortgages and Construction Conversion Mortgages only.) 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 5- and 7-year balloon/reset mortgages (non-seasoned) Home Possible Mortgages® (Newly Built Home Mortgages – Site-built only; non-seasoned) Initial Interest® Mortgages (Newly Built Home Mortgages – Site built only; non-seasoned)
Transaction Type	Purchase No cash-out refinance (Construction Conversion and Renovation Mortgages) Cash-out refinance (Construction Conversion and Renovation Mortgages (site built only)
Maximum LTV Ratios (without secondary financing)	Values used to determine LTV, TLTV, and HTLTV for Mortgages for Newly Constructed Homes are calculated according to the requirements in Chapter K33.12 for the Single-Family Seller/Servicer Guide.
Underwriting	Loan Prospector Mortgages Non-Loan Prospector Mortgages Minimum Indicator Score of 620 unless otherwise specified in the Guide All mortgages must meet the risk class and/or minimum Indicator Score requirements in Exhibit 25A, where applicable Maximum debt-to-income ratio of 45 percent for manually underwritten mortgages.
Execution Options	Servicing-released Cash Servicing-retained Cash Fixed-rate Guarantor WAC ARM Guarantor Mortgages for Newly Constructed Homes, 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	Special characteristics codes must be delivered on Form 11 or 13SF as applicable: see Guide Section 17.38.1 D49 – Newly Built Home Mortgages – Site built D50 – Newly Built Home Mortgages – Manufactured Home D51 – Construction Conversion Mortgages – Site built D51 and D69 – Renovation Mortgages – Site built (both SCCs must be delivered) D52 – Construction Conversion Mortgages – Manufactured Home Reference Code: 0013 (delivered with Construction Conversion/Renovation Mortgages when data must be entered into the mod/conv field)
Single-Family Seller/Servicer Guide	Find complete details on requirements for Mortgages for Newly Constructed Homes in Guide Chapter K33.

Download a Mortgages for Newly Constructed Homes factsheet.

Lender Benefits

• Expanded options to drive more loan volume with newly built, construction conversion and renovation mortgages, all available through the Single-Family Seller/Servicer Guide.
• New flexibility that matches your borrowers' needs, with 18 months to process, underwrite, document, allow for construction or renovation, and sell all Mortgages for Newly Constructed Homes allowing for longer construction times and a streamlined loan origination process.
• Enhanced niche-marketing opportunities to meet your borrowers' needs when combined with a variety of other Freddie Mac mortgages, including Alt 97, Home Possible® and Initial Interest® Mortgages.

Benefits for Your Borrowers

• Expanded options for offering permanent financing when your borrowers purchase or refinance a newly constructed site built or manufactured home, including renovations to their existing site built homes.
• A more flexible, streamlined loan origination process for your borrowers, whether they are purchasing or refinancing a newly constructed home.

Get More Information

• Call your Freddie Mac representative
• Download a Mortgages for Newly Constructed Homes factsheet

Training Opportunities

Visit The Learning Center for Mortgages for Newly Constructed Homes training resources. You can get information on 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.

The financial and other information contained in the documents that may be accessed on this page speaks only as of the date of those documents. The information could be out of date and no longer accurate. Freddie Mac does not undertake an obligation, and disclaims any duty, to update any of the information in those documents. Freddie Mac's future performance, including financial performance, is subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect the company's future results are discussed more fully in our reports filed with the SEC.