Freddie Mac announced CHOICEHomeSM, a conventional financing program for manufactured housing to help increase the availability of manufactured homes, according to a release from Freddie Mac.
Today’s manufactured homes can deliver outstanding quality at prices that are up to 50 percent less per square foot than conventional site-built homes, Freddie Mac said. The savings can enable more Americans to own their own home.
“Finding a home is more difficult than ever because of the ongoing housing supply shortage in many parts of the country, especially when looking for a home at a lower price point,” Mike Dawson, Freddie Mac vice president of Single-Family Affordable Lending Strategy and Policy, said in the release. “Currently there are more than 22 million families living in factory-built housing, and with that number expected to grow, there’s an opportunity for factory-built homes to address the housing supply shortage and quality housing overall. This new generation of manufactured housing might just be the best option for first-time homebuyers, millennials, and empty-nesters looking to downsize.”
To be eligible, manufacturers and lenders must follow HUD-code guidelines for the home construction and siting of the home, and manufactured housing must be titled as real property, Freddie Mac announced.
Freddie is conducting a two-year CHOICEHome pilot to bring conventional loan financing to factory-built homes. These homes have features such as permanent foundations and pitched roofs. Many of these homes also come with energy-saving features such as Energy Star Qualified Low-E windows, programmable thermostats and minimum insulation values, the company announced.
Freddie Mac will treat loans secured by CHOICEHome like loans secured by single-family site-built homes. If a factory-built home meets certain specifications it will be granted a CHOICEHome certification and will be eligible for CHOICEHome financing. This includes many Freddie Mac conventional loan products, including HomeOne and Home Possible mortgages.
Appraisers will be able to use site-built housing as a comparable for valuation, Freddie Mac said.