Freddie Mac Single-Family Seller/Servicer Guide §5703.12 — Mortgages secured by a CHOICEHome® (04/01/26)
Freddie Mac Guide §5703.12 (Mortgages secured by a CHOICEHome®). Gap-fill (verbatim, ID-diff).
Verbatim regulatory text
Verbatim provisions from Freddie Mac Single-Family Seller/Servicer Guide §5703.12 — Mortgages secured by a CHOICEHome® (04/01/26) — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
Freddie Mac Guide 5703.12
(04/01/26) Refer to Bulletin 2025-7, which announced the policy requirements for Uniform Appraisal Dataset (UAD) 3.6. Sellers may submit to the Uniform Collateral Data Portal® appraisal reports that use UAD 3.6 before the mandatory effective November 2, 2026 version of this section. CHOICEHome® is a type of Manufactured Home with aesthetics, architectural elements and dwelling specifications that exceed the minimum standards required for HUD-coded manufactured homes. These factory-built properties have features comparable to conventional, site-built properties. This section contains: ■ Purchase of Mortgages secured by CHOICEHomes ■ Construction elements for CHOICEHomes ■ Loan purpose and occupancy ■ Eligible and ineligible Mortgages secured by CHOICEHomes ■ Appraisal requirements for Mortgages secured by a CHOICEHome ■ Underwriting requirements for Mortgages secured by a CHOICEHome ■ Maximum loan-to-value (LTV)/total LTV (TLTV)/Home Equity Line of Credit (HELOC) TLTV (HTLTV) ratios and value calculation for Mortgages secured by a CHOICEHome ■ Use of proceeds for Mortgages secured by a CHOICEHome ■ Mortgage insurance for Mortgages secured by a CHOICEHome (a) Purchase of Mortgages secured by CHOICEHomes The Seller must verify that the subject property meets CHOICEHome property eligibility requirements. This includes obtaining an appraisal report and, when required, a final inspection that evidences the presence of the CHOICEHome element requirements and the following: ■ The Freddie Mac CHOICEHome notice or the Fannie Mae MH Advantage® Sticker, labels that certify the Manufactured Home meets certain CHOICEHome or MH Advantage construction elements, located in proximity to the HUD Data Plate ■ For a new CHOICEHome, both the HUD Data Plate and the HUD Certification Label(s)
Freddie Mac Guide 5703.12
703-42 ■ For an existing CHOICEHome, the HUD Data Plate or the HUD Certification Label(s). If neither the HUD Data Plate nor the HUD Certification Label(s) are present or legible, Freddie Mac will accept the alternative documentation described in Section 5703.2. The presence of a CHOICEHome notice only certifies a dwelling was manufactured to the CHOICEHome specifications that were in place as of its manufacture date and does not guarantee eligibility as a CHOICEHome. (b) Construction elements for CHOICEHomes CHOICEHomes must meet the Manufactured Home general requirements in Section 5703.2 and property and occupancy requirements in Section 5703.3, except as otherwise indicated by specific CHOICEHome construction elements below. (i) Foundation The permanent foundation must comply with the following requirements: ■ Meet HUD’s Permanent Foundation Guide for Manufactured Housing ■ Be engineer designed and certified for the specific dwelling and site; and ■ Include a perimeter mortared masonry blocking wall set on a poured perimeter footer (ii) Elevation (A) Design The elevation design must follow these requirements: ■ Be a low-profile/residential set finished floor set ■ Not exceed 30 inches from the bottom of the first-floor joist to the exterior grade for the front or entry Site topography or other considerations may affect actual placement and will not disqualify the property from its CHOICEHome classification (B) Features In addition to the elevation design requirements described in Section 5703.12(b)(ii)(A) above, for multi-wide properties, the Manufactured Home must include one of the following feature pairings: ■ Dormer(s) and covered porch (minimum 72 sq. ft.)
Freddie Mac Guide 5703.12
703-43 ■ Dormer(s) and attached/detached carport/garage with space to accommodate one or two cars. The materials and finishes must be at least equivalent to the primary structure. ■ Covered porch (minimum 72 sq. ft.) and attached/detached carport/garage with space to accommodate one or two cars. The materials and finishes must be at least equivalent to the primary structure. In addition to the elevation design requirements described in Section 5703.12(b)(ii)(A) above, for single-wide properties, the Manufactured Home must include both of the following feature pairings: ■ Covered porch (minimum 72 sq. ft.), and ■ Attached carport/garage with space to accommodate one or two cars. The materials and finishes must be at least equivalent to the primary structure. (c) Loan purpose and occupancy A Mortgage secured by a CHOICEHome must be either a purchase transaction Mortgage or “no cash-out” refinance Mortgage secured by a 1-unit Primary Residence. (d) Eligible and ineligible Mortgages secured by CHOICEHomes (i) Eligible Mortgages Mortgages secured by a CHOICEHome must be: ■ Fixed-rate Mortgages; or ■ 5/6-Month, 7/6-Month or 10/6-Month ARMs Home Possible® Mortgages, HomeOne® Mortgages and HeritageOne® Mortgages must be fixed-rate Mortgages. (ii) Ineligible Mortgages Mortgages secured by a CHOICEHome must not be: ■ Seller-Owned Converted Mortgages ■ Seller-Owned Modified Mortgages ■ Super conforming Mortgages
Freddie Mac Guide 5703.12
703-44 (e) Appraisal requirements for Mortgages secured by a CHOICEHome Each Mortgage secured by a CHOICEHome requires an appraisal report completed on Form 70B, Manufactured Home Appraisal Report. The appraisal report must reflect an opinion of value based on the real property as completed, consisting of the CHOICEHome, all site improvements and the land on which the property is situated. The appraisal report must include photos of the following: ■ The CHOICEHome notice or MH Advantage Sticker, as applicable ■ The HUD Data Plate and HUD Certification Label(s) as follows: ❑ For a new CHOICEHome, both the HUD Data Plate and the HUD Certification Label(s) must be present and legible ❑ For an existing CHOICEHome, the HUD Data Plate or the HUD Certification Label(s) are acceptable. When both are present, the appraiser must include both. ■ The property and site features, including dormers, porches, garages, carports and any other attached or detached structures The appraisal report must comply with the sales comparison approach requirements outlined in Section 5605.6, and the appraisal report should contain at least one comparable CHOICEHome sale. If none are available, the appraisal report may contain site-built homes as comparable sales. Traditional HUD-coded Manufactured Homes are not required as comparable sales. However, if used, the appraisal report must include an explanation that supports its use as a comparable sale(s) considering CHOICEHome’s elements and specifications. (f) Underwriting requirements for Mortgages secured by a CHOICEHome A Mortgage secured by a CHOICEHome must be an Accept Mortgage.
Freddie Mac Guide 5703.12
703-45 The Seller must select the following in Loan Product Advisor®: Data required for Mortgages secured by a CHOICEHome Loan Product Advisor unique ID Loan Product Advisor data point Valid values 52.00 Attachment Type Detached 55.00 Construction Method Type Manufactured 46.00 Manufactured Home Width Type ■ MultiWide ■ SingleWide 178.00 Loan Program Identifier CHOICEHome A Mortgage secured by a CHOICEHome is not eligible for automated collateral evaluation (ACE) or ACE+ PDR. The Seller must not accept an offer from Loan Product Advisor stating ACE or ACE+ PDR is acceptable. (g) Maximum LTV/TLTV/HTLTV ratios and value calculation for Mortgages secured by a CHOICEHome The maximum LTV/TLTV/HTLTV ratios and determination of value for Mortgages secured by a CHOICEHome are as follows: (i) Maximum LTV/TLTV/HTLTV ratios Maximum LTV/TLTV/HTLTV ratio Fixed-rate Mortgages All Mortgages except Home Possible, HomeOne and HeritageOne Mortgages 95/95/95% ■ Home Possible Mortgages ■ HomeOne Mortgages ■ HeritageOne Mortgages 97/97/97% ■ Home Possible Mortgages with an Affordable Second® ■ HomeOne Mortgages with an Affordable Second 97/105/97%
Freddie Mac Guide 5703.12
703-46 Maximum LTV/TLTV/HTLTV ratio ■ HeritageOne Mortgages with an Affordable Second ARMs All Mortgages* 95/95/95% *Pursuant to Section 5703.12(d)(i), Home Possible Mortgages, HomeOne Mortgages and HeritageOne Mortgages must be fixed-rate Mortgages. (ii) Calculation of value The value used to determine the LTV/TLTV/HTLTV ratios of Mortgages secured by CHOICEHomes is calculated as follows: Determining value for LTV/TLTV/HTLTV ratios Transaction type Value Purchase transaction Mortgage The lower of: ■ The purchase price of the CHOICEHome and purchase price of the land; or ■ The current appraised value of the CHOICEHome and land “No cash-out” refinance Mortgages The current appraised value of the CHOICEHome and land (h) Use of proceeds for Mortgages secured by a CHOICEHome The following table specifies the allowable use of proceeds by transaction type: Allowable use of proceeds for Mortgages secured by a CHOICEHome Transaction type Use of proceeds Other requirements Purchase transaction Mortgages Limited to: ■ Purchasing the CHOICEHome ■ Credits for wheels and axles and any Manufactured Home retailer rebates must
Freddie Mac Guide 5703.12
703-47 Allowable use of proceeds for Mortgages secured by a CHOICEHome Transaction type Use of proceeds Other requirements ■ Purchasing the land when the Borrower does not separately own the land ■ Paying documented costs for delivery and setup, anchoring on a permanent foundation system, site development, installation and permanent utility connections, including well and/or septic systems be deducted from the purchase price ■ Sales concessions as described in Section 5501.6(c) and other costs, including financing of any forms of insurance except for mortgage insurance, may not be used in the purchase price “No cash-out” refinance Mortgage Limited to: ■ Paying off the principal and interest due, including a balance deferred under a loss mitigation plan, for the existing first Mortgage ■ Pay off or pay down any junior lien(s) secured by the CHOICEHome and/or the land that was used in their entirety to acquire the subject property. Any remaining balance must be subordinated to the refinance Mortgage. ■ Paying off any costs or fees associated with the satisfaction and release of the first Mortgage (e.g., late fees, prepayment penalties) ■ Paying related Closing Costs ■ Disbursing cash to the Borrower (or any other payee) up to the greater of 1% of the new refinance Mortgage or $2,000 None
Freddie Mac Guide 5703.12
703-48 Allowable use of proceeds for Mortgages secured by a CHOICEHome Transaction type Use of proceeds Other requirements ■ Paying any required share of appreciation due to the subsidy provider per the resale restricted covenants (i) Mortgage insurance for Mortgages secured by a CHOICEHome A Mortgage secured by a CHOICEHome originated under this Section 5703.12 with an LTV ratio greater than 95% but less than or equal to 97% is eligible for mortgage insurance under Section 4701.1. The Seller must verify that the mortgage insurance will cover a Mortgage secured by a CHOICEHome with an LTV ratio greater than 95% before submitting such mortgage insurance.
Freddie Mac Guide 5703.12
Mortgages secured by a CHOICEHome® (Future effective date 06/04/26) Refer to Bulletin 2025-7, which announced the policy requirements for Uniform Appraisal Dataset (UAD) 3.6. Sellers may submit to the Uniform Collateral Data Portal® appraisal reports that use UAD 3.6 before the mandatory effective November 2, 2026 version of this section. CHOICEHome® is a type of Manufactured Home with aesthetics, architectural elements and dwelling specifications that exceed the minimum standards required for HUD-coded manufactured homes. These factory-built properties have features comparable to conventional, site-built properties. This section contains: ■ Purchase of Mortgages secured by CHOICEHomes ■ Construction elements for CHOICEHomes ■ Loan purpose and occupancy ■ Eligible and ineligible Mortgages secured by CHOICEHomes ■ Appraisal requirements for Mortgages secured by a CHOICEHome ■ Underwriting requirements for Mortgages secured by a CHOICEHome
Freddie Mac Guide 5703.12
703-49 ■ Maximum loan-to-value (LTV)/total LTV (TLTV)/Home Equity Line of Credit (HELOC) TLTV (HTLTV) ratios and value calculation for Mortgages secured by a CHOICEHome ■ Use of proceeds for Mortgages secured by a CHOICEHome ■ Mortgage insurance for Mortgages secured by a CHOICEHome (a) Purchase of Mortgages secured by CHOICEHomes The Seller must verify that the subject property meets CHOICEHome property eligibility requirements. This includes obtaining an appraisal report and, when required, a final inspection that evidences the presence of the CHOICEHome element requirements and the following: ■ The Freddie Mac CHOICEHome notice or the Fannie Mae MH Advantage® Sticker, labels that certify the Manufactured Home meets certain CHOICEHome or MH Advantage construction elements, located in proximity to the HUD Data Plate ■ For a new CHOICEHome, both the HUD Data Plate and the HUD Certification Label(s) ■ For an existing CHOICEHome, the HUD Data Plate or the HUD Certification Label(s). If neither the HUD Data Plate nor the HUD Certification Label(s) are present or legible, Freddie Mac will accept the alternative documentation described in Section 5703.2. The presence of a CHOICEHome notice only certifies a dwelling was manufactured to the CHOICEHome specifications that were in place as of its manufacture date and does not guarantee eligibility as a CHOICEHome. (b) Construction elements for CHOICEHomes CHOICEHomes must meet the Manufactured Home general requirements in Section 5703.2 and property and occupancy requirements in Section 5703.3, except as otherwise indicated by specific CHOICEHome construction elements below. (i) Foundation The permanent foundation must comply with the following requirements: ■ Meet HUD’s Permanent Foundation Guide for Manufactured Housing ■ Have an engineered foundation certified by a registered architect or professional engineer; and ■ Include a masonry or poured concrete perimeter wall