Freddie Mac Introduces CHOICEHome Pilot Program For Manufactured Home Borrowers
Last week we reported that manufactured home borrowers are becoming more attractive for home-finance companies looking to diversify their outreach. Now, Freddie Mac has released information on its CHOICEHome pilot program that is designed to help users utilize more of its credit and collateral flexibilities with manufactured home borrowers.
"CHOICEHome is a new type of manufactured home defined by higher pitch roof lines; permanent foundations; dry wall throughout; energy-efficient features; and site-built components, such as a garage or carport," according to Freddie Mac.
"During this pilot, we’ll permit a loan-to-value ratio of up to 97 percent with a Home Possible® and HomeOne℠ mortgage, and our construction conversion loans to finance a CHOICEHome."
The company also plans to test the loan origination process to narrow down valuable financing terms for the market. The final step will be the CHOICEHome certification which would then make the manufactured home eligible for CHOICEHome financing.
"And, in appraising these homes, we’ll permit the use of site-built homes as comparable sales when there are no CHOICEHome sales available," according to Freddie Mac.
To learn more about the CHOICEHome pilot program, click on the image above.
