© 2018 Freddie Mac Single-Family Seller Servicer Guide
Construction Conversion Mortgages and Renovation Mortgages must be secured by Mortgaged Premises that satisfy the following requirements.
The Mortgaged Premises must be:
Construction Conversion Mortgage A newly built or constructed 1- to 4-unit site-built home, or
A newly purchased Manufactured Home that has never been attached to a foundation.Renovation Mortgage An existing 1- to 4-unit site-built home - Prior to the start of construction or renovation work, the Borrower must own the land in fee simple or, for a site-built home, have a leasehold estate meeting the requirements of Chapter of Chapter 5704. The Borrower may have acquired the land through a purchase, inheritance, gift or divorce settlement.
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All improvements must be fully completed before the sale of the Mortgage to Freddie Mac except for Mortgages secured by site-built homes meeting the requirements in Section in Section 5601.2(b) and for which completion escrows are established in accordance with the requirements of Section of Section 5601.2(b).
For a Manufactured Home, the installation must be fully complete, including permanent utility connections and construction of any site-built improvements such as garages, decks, or porches, before the Mortgage can be sold to Freddie Mac as evidenced by a satisfactory completion report.
For both site-built homes and Manufactured Homes, Sellers must provide evidence that the property is complete. See the requirements in Section in Section 5601.11.Additional Resource: https://www.allregs.com/tpl/Viewform.aspx?formid=00051759&formtype=agency#page=211