5703.3: General eligibility requirements for Mortgages secured by Manufactured Homes (11/05/18)

Owned by Marsha Freeman
Last updated: Nov 20, 2018
3 min read

© Freddie Mac Single-Family Seller Servicer Guide


(a) Eligible Mortgages
A Mortgage secured by a Manufactured Home must be submitted to Loan Product Advisor®. The following Mortgages are eligible:
  • An Accept Mortgage, or
  • An A-minus Mortgage, or
  • A Mortgage that was submitted to Loan Product Advisor and received:
    • An evaluation status of invalid, ineligible or incomplete, or
    • A Risk Class of Caution and was not eligible as an A-minus Mortgage

And

  • A fully amortizing 15-, 20- or 30-year fixed-rate Mortgage, or
  • A 7/1 ARM, or
  • A 10/1 ARM
(b) Ineligible Mortgages
A Mortgage secured by a Manufactured Home must not be:
  • An ARM, other than those listed in Section 5703.3(a)
  • A Non-Loan Product Advisor Mortgage that has never been submitted to Loan Product Advisor
  • A Mortgage subject to a temporary subsidy buydown
  • A Renovation Mortgage
  • A Seller-Owned Converted Mortgage
  • A Seller-Owned Modified Mortgage
  • An Investment Property Mortgage
  • A Seasoned Mortgage
  • A leasehold Mortgage
  • A Mortgage securing a Manufactured Home that was moved from its original site and was previously occupied or installed on a permanent foundation
  • A Mortgage with proceeds that are used to pay the outstanding balance under a land contract or contract for deed
  • A Freddie Mac HomeOneSM Mortgage
  • A Community Land Trust Mortgage
  • A Mortgage secured by property subject to income-based resale restrictions
(c) Occupancy
A Manufactured Home must be a Primary Residence or a second home.An Investment Property Mortgage secured by a Manufactured Home is ineligible for delivery.
(d) Maximum loan term
For a purchase or "no cash-out" refinance transaction secured by a Primary Residence that is an Accept Mortgage, the maximum loan term is:
  • 30 years, for Mortgages with loan-to-value (LTV)/total LTV (TLTV)/Home Equity Line of Credit (HELOC) TLTV (HTLTV) ratios less than or equal to 95%

For a purchase or "no cash-out" refinance transaction secured by a Primary Residence that is an A-minus Mortgage, or a Mortgage that was submitted to Loan Product Advisor and received an evaluation status of invalid, ineligible or incomplete, or a Risk Class of Caution and was not eligible as an A-minus Mortgage, the maximum loan term is:

  • 20 years, for Mortgages with LTV/TLTV/HTLTV ratios greater than 90% and less than or equal to 95%
  • 30 years, for Mortgages with LTV/TLTV/HTLTV ratios less than or equal to 90%

For a purchase or "no cash-out" refinance transaction secured by a second home, the maximum loan term is:

  • 30 years, for Mortgages with LTV/TLTV/HTLTV ratios less than or equal to 85%

For a cash-out refinance transaction secured by a Primary Residence, the maximum loan term is:

  • 20 years, for Mortgages with LTV/TLTV/HTLTV ratios less than or equal to 65%
(e) Maximum LTV/TLTV/HTLTV ratios
The maximum LTV/TLTV/HTLTV ratios for a Mortgage secured by a Manufactured Home are as follows:
PURCHASE AND "NO CASH-OUT" REFINANCE TRANSACTIONS
ACCEPT MORTGAGES
(Fixed-rate, 7/1 ARM and 10/1 ARM with a maximum 30-year loan term)
Occupancy typeMaximum LTV/TLTV/HTLTV ratio
Primary Residence95%
A-MINUS MORTGAGES, CAUTION MORTGAGES AND MORTGAGES THAT WERE SUBMITTED TO LOAN PRODUCT ADVISOR AND RECEIVED AN EVALUATION STATUS OF INVALID, INELIGIBLE OR INCOMPLETE
(Fixed-rate, 7/1 ARM and 10/1 ARM with a maximum 30-year loan term)
Occupancy typeMaximum LTV / TLTV / HTLTV ratio
Primary Residence90%
A-MINUS MORTGAGES, CAUTION MORTGAGES AND MORTGAGES THAT WERE SUBMITTED TO LOAN PRODUCT ADVISOR AND RECEIVED AN EVALUATION STATUS OF INVALID, INELIGIBLE OR INCOMPLETE
(Fixed-rate, 7/1 ARM and 10/1 ARM with a maximum 20-year loan term)
Occupancy typeMaximum LTV / TLTV / HTLTV ratio
Primary Residence95%
ACCEPT MORTGAGES, A-MINUS MORTGAGES, CAUTION MORTGAGES AND MORTGAGES THAT WERE SUBMITTED TO LOAN PRODUCT ADVISOR AND RECEIVED AN EVALUATION STATUS OF INVALID, INELIGIBLE OR INCOMPLETE
(Fixed-rate, 7/1 ARM and 10/1 ARM with a maximum 30-year loan term)
Occupancy typeMaximum LTV / TLTV / HTLTV ratio
Second home85%

CASH-OUT REFINANCE TRANSACTIONS
ACCEPT MORTGAGES, A-MINUS MORTGAGES, CAUTION MORTGAGES AND MORTGAGES THAT WERE SUBMITTED TO LOAN PRODUCT ADVISOR AND RECEIVED AN EVALUATION STATUS OF INVALID, INELIGIBLE OR INCOMPLETE
(Fixed-rate, 7/1 ARM and 10/1 ARM with a maximum 20-year loan term)
Occupancy TypeMaximum LTV/TLTV/HTLTV ratio
Primary Residence65%
(f) Mortgage insurance requirements
A Mortgage secured by a Manufactured Home must have mortgage insurance coverage as stated in Section 4701.1. 
The Mortgage can include Borrower-paid mortgage insurance premiums as provided for in Section 4701.1.