Freddie Mac Single-Family Seller/Servicer Guide 5706.3 — Eligible transaction types for Mortgages secured by Manufactured Homes on leasehold estates

Freddie Mac Single-Family Seller/Servicer Guide 5706.3 — Eligible transaction types for Mortgages secured by Manufactured Homes on leasehold estates

Effective 2026-04-01 · Freddie Mac's stamp for this section

This section contains requirements related to: ■ Purchase transactions ■ “No cash-out” refinance transactions A Mortgage secured by a Manufactured Home located on a leasehold estate may be a purchase transaction or a “no cash-out” refinance transaction. For a new Manufactured Home, whether it is affixed to a permanent foundation prior to or after the Application Received Date, the Seller must obtain a copy of the manufacturer’s invoice and Manufactured Home Purchase Agreement. (a) Purchase transactions A purchase transaction is one in which the Mortgage proceeds are used to finance the purchase of the Manufactured Home. The proceeds may also be used to purchase the leasehold interest in the land, as the Borrower does not separately own the land. For Manufactured Homes, the following requirements apply: ■ The purchase price may include documented costs for delivery and setup, 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 along with any sales concessions in accordance with Section 5501.6(c) ■ Financing of any forms of insurance, except for mortgage insurance, or other costs is not allowed for purchase transactions The maximum loan-to-value (LTV)/total LTV (TLTV)/Home Equity Line of Credit (HELOC) TLTV (HTLTV) ratios (if applicable) for a purchase transaction Mortgage secured by a newly built Manufactured Home (not previously owned) and/or not affixed to a permanent foundation as of the Application Received Date are based on value calculated as the lower of: ■ The purchase price of the Manufactured Home and leasehold interest in the land, or ■ The current appraised value of the Manufactured Home and leasehold interest in the land The LTV ratio (and TLTV/HTLTV ratio, if applicable) for a purchase transaction Mortgage secured by a previously owned Manufactured Home that is affixed to a permanent foundation prior to the Application Received Date is based on value calculated as the lower of: ■ The purchase price of the Manufactured Home and leasehold interest in the land, or ■ The current appraised value of the Manufactured Home and leasehold interest in the land (b) “No cash-out” refinance transactions A “no cash-out” refinance transaction involves the payoff of an existing Mortgage secured by the Manufactured Home and leasehold interest in the land. Proceeds from a “no cash-out” refinance Mortgage may be used only to: ■ Pay off the principal and interest due, including a balance deferred under a loss mitigation plan, for the existing first Mortgage secured by the Manufactured Home and leasehold interest in the land ■ Pay off any costs or fees associated with the satisfaction and release of the first Mortgage (e.g., late fees, prepayment penalties, etc.) ■ Pay off or pay down any junior lien(s) obtained by the Borrower solely to acquire the Manufactured Home. Any remaining balance must be subordinated to the refinance Mortgage. ■ Pay related Closing Costs ■ Disburse cash out to the Borrower (or any other payee) up to the greater of 1% of the new refinance Mortgage or $2,000 A “no cash-out” refinance Mortgage must also meet the requirements in Section 4301.4(a).

Source: Freddie Mac Single-Family Seller/Servicer Guide 5706.3 — Eligible transaction types for Mortgages secured by Manufactured Homes on leasehold estates · source URL · snapshot 4c94f67729042dd6