Freddie Mac Single-Family Seller/Servicer Guide Section 4201.3 — Amortization and term

Freddie Mac Single-Family Seller/Servicer Guide Section 4201.3 — Amortization and term

4201.3: Amortization and term (02/04/26) This section contains requirements related to: ■ Amortization ■ Term (a) Amortization The Note must provide for full amortization by maturity through regular monthly payments. Amortization must begin no later than 62 days after final disbursement of the Mortgage proceeds. (b) Term The original term of all Mortgages delivered to Freddie Mac must not exceed 30 years from the date that is one month before the first payment Due Date. For Construction to Permanent Mortgages or Renovation Mortgages, the Due Date is the first payment due on the Permanent Financing. For each program listed below, the original term of the Mortgage must comply with the following requirements: Minimum and maximum term requirements by program Program Minimum original term from the date that is one month before the first payment Due Date Maximum original term from the date that is one month before the first payment Due Date 10-year program Greater than 84 months 10 years Freddie Mac Single-Family Seller/Servicer Guide Chapter 4201 As of 03/04/26 Page 4201-3 Minimum and maximum term requirements by program Program Minimum original term from the date that is one month before the first payment Due Date Maximum original term from the date that is one month before the first payment Due Date 15-year program Greater than 84 months 15 years 20-year program Greater than 15 years 20 years 30-year program Greater than 15 years 30 years 4201.4: Closed Mortgages and Settlement Date requirements (02/04/26) This section contains: ■ Closed Mortgage requirements ■ Settlement Date requirements ■ Additional requirements for Mortgages with Settlement Dates more than 120 days after the Note Date (a) Closed Mortgage requirements The Mortgage must be closed before delivery to Freddie Mac. Final disbursement of the Mortgage proceeds constitutes closing of the Mortgage. Construction to Permanent and Renovation Mortgages must be delivered after the Effective Date of Permanent Financing. The Mortgage must be closed in the Seller’s name as lender or validly assigned and endorsed to the Seller as a holder-in-due-course. (b) Settlement Date requirements The Settlement Date must occur no more than six months after the: ■ Note Date ■ Effective Date of Permanent Financing for Construction to Permanent Mortgage and Renovation Mortgages. See Chapter 4602 for eligibility requirements. Freddie Mac Single-Family Seller/Servicer Guide Chapter 4201 As of 03/04/26 Page 4201-4 ■ Modification Date for Seller-Owned Modified Mortgages. See Chapter 4402 for eligibility requirements. ■ Conversion date for Seller-Owned Converted Mortgages. See Chapter 4402 for eligibility requirements. ■ Date of the New York Consolidation, Extension and Modification Agreement (NY CEMA) for a refinance Mortgage secured by property in New York State documented using the NY CEMA. See Section 4101.11 for eligibility requirements. Exception: For CHOICERenovation® Mortgages with Settlement Dates after completion of renovations, the Settlement Date must occur no more than 450 days after the Note Date. See Section 4607.4(a). (c) Additional requirements for Mortgages with Settlement Dates more than 120 days after the Note Date Certain Mortgages with Settlement Dates more than 120 days after the Note Date have additional requirements stated elsewhere in the Guide as described in the table below. Additional requirements for Mortgages with Settlement Dates more than 120 days after the Note Date Topic Guide location Automated collateral evaluation (ACE) Section 5602.3(h) ACE+ PDR Section 5602.4(g) Appraisals Section 5604.3(a)(iii) Condominium Unit Mortgages Sections 5701.2(b), 5701.10(j) and 5701.11(d) Cooperative Share Loans Section 5705.2(b) 4201.5: Principal amount advanced; no mandatory future advances; outstanding balance (04/02/25) The full principal amount of the Mortgage must have been disbursed or advanced to the Borrower or according to the direction of the Borrower. Under the Security Instrument, the Borrower may not have an option to borrow additional funds secured by the Security Instrument. The outstanding principal balance of the Mortgage must be as represented by the Seller to Freddie Mac and must be fully secured by the Security Instrument. Freddie Mac Single-Family Seller/Servicer Guide Chapter 4201 As of 03/04/26 Page 4201-5

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