Freddie Mac Expands Choicehome Financing Options To Boost Affordable Housing

Freddie Mac announced on Wednesday the expansion of its CHOICEHome conventional financing options to include modern single-section, factory-built homes.

The move, which is effective immediately, is designed to boost the availability of affordable housing by offering conventional loans for single-section (single-wide) homes that combine factory and site-built construction.

Per a release from Freddie Mac, these manufactured homes are built to exceed the federal standards set by the U.S. Department of Housing and Urban Development (HUD) and are typically less expensive than traditional site-built properties.

Freddie Mac said the median price for these newly eligible homes is about $200,000 — including land — in most markets. By comparison, the average price of a traditional single-family site-built home can exceed $500,000.

Wednesday’s move expands Freddie Mac’s CHOICEHome mortgages to increase the availability of modern factory-built, single-section homes, encouraging more buyers and builders to consider them as an attractive option.

“Under President Trump, U.S Federal Housing is committed to delivering affordable homeownership and finding ways to grow our nation’s housing supply,” Bill Pulte, Freddie Mac’s chairman and director of the Federal Housing Finance Agency, said in a statement.

“Modern single-section factory-built homes can offer high-quality alternatives at a lower price point. Freddie Mac’s expansion of the CHOICEHome program helps make more homes accessible to more Americans through the conventional mortgage market.”

CHOICEHome mortgages appraise factory-built homes using similar methods as site-built properties, and Freddie Mac will purchase the loans from lenders.

“Freddie Mac’s support for modern single-section factory-built homes will play an important role in creating and promoting affordable housing in markets that need additional supply to help first-time homebuyers,” said Sonu Mittal, Freddie Mac’s executive vice president and head of single-family acquisitions.

“Lenders can leverage our existing CHOICEHome mortgage offerings to finance these homes, and we are ready to purchase these loans now.”

The government-sponsored enterprise already offers 3% down payment options for multi-section factory-built homes. The expansion extends that option to single-section homes for the first time.

CHOICEHome-financed manufactured homes must meet specific construction standards, which include features such as permanent foundations, energy-efficient designs, pitched roofs, attached garages, and enhanced durability and comfort.

These features also make for easier integration with existing neighborhoods that include site-built homes, including urban infill areas.