Freddie Mac Single-Family Seller/Servicer Guide Section 4201.13 — Investment Property Mortgages

Freddie Mac Single-Family Seller/Servicer Guide Section 4201.13 — Investment Property Mortgages

4201.13: Investment Property Mortgages (03/04/26) Mortgages secured by Investment Properties are eligible for sale to Freddie Mac in accordance with the requirements of this section. This section contains: ■ Eligibility requirements ■ Special underwriting requirements ■ Uniform Instrument requirements ■ Delivery requirements for rental income from all subject 1- to 4-unit Investment Properties ■ Credit Fees (a) Eligibility requirements The following eligibility requirements apply to Investment Property Mortgages: Freddie Mac Single-Family Seller/Servicer Guide Chapter 4201 As of 03/04/26 Page 4201-12 ■ The Mortgage must be an Accept Mortgage ■ Mortgages with temporary subsidy buydowns are not eligible for sale to Freddie Mac ■ Mortgages made to Borrowers who own more than one financed Investment Property are eligible for sale to Freddie Mac, provided that the Investment Property Mortgage being sold to Freddie Mac is: ❑ An eligible fixed-rate, level-payment Mortgage, or ❑ A 7/6-Month or 10/6-Month ARM (b) Special underwriting requirements (i) Maximum number of financed properties Each Borrower individually and all Borrowers collectively must not be obligated on (e.g., Notes, land contracts and/or any other debt or obligation) more than 10 1- to 4-unit financed properties, including the subject property and the Borrower’s Primary Residence. Examples of financed properties that do not have to be counted in these limitations include: ■ Commercial real estate ■ Multifamily (five or more units) real estate ■ Timeshares ■ Undeveloped land ■ Manufactured homes not titled as real property (chattel lien), unless the property is situated on the land that is titled as real property ■ Property titled in the name of the Borrower’s business if the Borrower, in their individual capacity, is not obligated on Notes, land contracts and/or any debt or obligation related to such property ■ Property titled in the name of a trust where the Borrower is a trustee if the Borrower, in their individual capacity, is not obligated on Notes, land contracts and/or any debt or obligation related to such property Freddie Mac Single-Family Seller/Servicer Guide Chapter 4201 As of 03/04/26 Page 4201-13 (ii) Reserve requirements for Investment Property Mortgages Regardless of whether rental income from the Mortgaged Premises is used in qualifying, the reserves requirements in Section 5501.2 must be met. (iii) Rental income from an Investment Property Refer to Section 5306.1 for requirements related to rental income. (iv) Borrower’s monthly housing expense-to-income ratio The monthly housing expense related to the Borrower’s current Primary Residence must be used in calculating the Borrower’s monthly housing expense-to-income ratio. (v) Asset eligibility limitations All funds used to qualify the Borrower for the Mortgage, which includes any funds required to be paid by the Borrower and Borrower reserves, must be Borrower personal funds, as described in Section 5501.3, with the exception of pooled funds, which are not an eligible source of funds for Investment Property Mortgages. (vi) Newly constructed homes For purchases of newly constructed homes, the Borrower may not be affiliated with or related to the builder, developer or property seller. For these purposes, “affiliated with” means that the Borrower may not have an ownership interest in or employment with the builder, developer or property seller. (c) Uniform Instrument requirements Form 3170, 1-4 Family Rider, is required for all Mortgages secured by Investment Properties. Note: See Exhibit 5A, Authorized Changes to Notes, Riders, Security Instruments and the Uniform Residential Loan Application, Section VIII, for authorized changes to the 1-4 Family Rider for Investment Property Mortgages. (d) Delivery requirements for rental income from all subject 1- to 4-unit Investment Properties Regardless of whether rental income from the subject 1- to 4-unit Primary Residence is being used to qualify the Borrower, the Seller must deliver ULDD Data Point Property Dwelling Unit Eligible Rent Amount for: ■ Subject 1-unit Investment Property Freddie Mac Single-Family Seller/Servicer Guide Chapter 4201 As of 03/04/26 Page 4201-14 ■ Each unit in a subject 2- to 4-unit Investment Property Note: See Section 6302.8 for delivery requirements for rental income. (e) Credit Fees The Seller must refer to Exhibit 19, Credit Fees, for Credit Fees related to Investment Property Mortgages. Credit Fees are paid in accordance with the Credit Fee provisions stated in Chapter 6303.

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