Freddie Mac Single-Family Seller/Servicer Guide 5703.12 — Mortgages secured by a CHOICEHome®

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) ■ 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 (ii) Elevation design and features The elevation design and features must: ■ 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 ■ Have a covered porch (minimum 72 sq. ft.) (iii)New construction features and site improvements A newly constructed CHOICEHome with a date of manufacture after June 4, 2026, must have all of the following features and site improvements: ■ For a single-section home, an attached garage or carport with space to accommodate at least one car. The exterior materials and finishes for the attached garage must be at least equivalent to the remainder of the structure. ■ A driveway leading to the home or to the garage or carport. The driveway must consist of blacktop, pavers, bricks, concrete or cement. ■ A sidewalk connecting the driveway to the front entrance of the home. The sidewalk must consist of blacktop, pavers, flagstone, bricks, concrete or cement. Exception: If an existing in-fill lot cannot accommodate an attached garage or carport, driveway and/or sidewalk, the feature and/or site improvement is not required. An in-fill lot is vacant or underutilized land located within a developed urban or suburban area, typically surrounded by existing buildings and infrastructure. It specifically excludes any lot located in a newly created or recently platted subdivision. ■ A gutter and downspout system to direct water away from the foundation and 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

(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 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 must 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. 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% 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 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 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.

(Future effective date 11/02/26) 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) ■ 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 (ii) Elevation design and features The elevation design and features must: ■ 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 ■ Have a covered porch (minimum 72 sq. ft.) (iii)New construction features and site improvements A newly constructed CHOICEHome with a date of manufacture after June 4, 2026, must have all of the following features and site improvements: ■ For a single-section home, an attached garage or carport with space to accommodate at least one car. The exterior materials and finishes for the attached garage must be at least equivalent to the remainder of the structure. ■ A driveway leading to the home or to the garage or carport. The driveway must consist of blacktop, pavers, bricks, concrete or cement. ■ A sidewalk connecting the driveway to the front entrance of the home. The sidewalk must consist of blacktop, pavers, flagstone, bricks, concrete or cement. Exception: If an existing in-fill lot cannot accommodate an attached garage or carport, driveway and/or sidewalk, the feature and/or site improvement is not required. An in-fill lot is vacant or underutilized land located within a developed urban or suburban area, typically surrounded by existing buildings and infrastructure. It specifically excludes any lot located in a newly created or recently platted subdivision. ■ A gutter and downspout system to direct water away from the foundation and 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

(e) Appraisal requirements for Mortgages secured by a CHOICEHome Each Mortgage secured by a CHOICEHome requires a Traditional Appraisal Report. The appraisal report must identify the subject property as a Manufactured Home and include 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 appraisal report must include both. ■ The subject property and site features, including porches, garages, carports and any other attached or detached structures The appraisal report must be in compliance with the sales comparison approach requirements outlined in Section 5605.7, and the appraisal report should contain at least one comparable CHOICEHome sale. If none are available, the appraisal report must 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. 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 appraisal waiver 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 ■ HeritageOne Mortgages with an Affordable Second 97/105/97% 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 ■ 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 ■ Credits for wheels and axles and any Manufactured Home retailer rebates must 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 None Allowable use of proceeds for Mortgages secured by a CHOICEHome Transaction type Use of proceeds Other requirements 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 ■ 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.