Freddie Mac Expands Financing Options to Increase Availability of Affordable Housing

In an industry first, the company begins CHOICEHome financing for modern single-section factory-built homes

MCLEAN, Va., Aug. 06, 2025 (GLOBE NEWSWIRE) -- In an effort to increase the availability of affordable homes, Freddie Mac (OTCQB: FMCC) will expand its CHOICEHome conventional financing options to include modern single-section factory-built homes, effective today. Doing so will expand housing supply, while providing lenders with innovative financing options offered by the company. Modern single-section factory-built homes combine the advantages of factory- and site-built construction to offer a housing option that is typically more affordable than traditional site-built construction.

Specifically, the move expands Freddie Mac’s CHOICEHome^® mortgages to increase the availability of these modern factory-built single-section homes, encouraging more buyers and builders to consider them as an attractive option. This financing option becomes available to lenders on August 6, 2025. CHOICEHome mortgages are appraised using similar methods as site-built homes.

“Under President Trump, U.S Federal Housing is committed to delivering affordable homeownership and finding ways to grow our nation’s housing supply,” said William J. Pulte, Freddie Mac Chairman. “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.”

“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.”

“We join the entire industry in celebrating Freddie Mac’s significant effort to add the single-section home design to their CrossMod mortgage program,” said Clayton CEO, Kevin Clayton. “This important update will now provide attainable, energy efficient homeownership to many more deserving families, helping to make these homes available in established neighborhoods and narrow urban lots.”

The company’s CHOICEHome mortgage product brings conventional loan financing to modern factory-built homes that are built to exceed federal standards called for by the U.S. Department of Housing and Urban Development. This financing typically offers a more affordable option than traditional site-built homes. The mean price of the newly accepted single-section home is around $200,000 including land in most markets, while the traditional single-family site-built home can, on average, exceed $500,000.

Freddie Mac’s existing financing options include financing for multi-section factory-built homes with a 3% down payment option. As of today, Freddie Mac will include the same financing option for single-section, or single-wide, modern factory-built homes for the first time.

Freddie Mac ensures that CHOICEHome financed manufactured homes meet specific construction standards, which include features such as permanent foundations, energy-efficient designs, pitched roofs, attached garages, and enhanced durability and comfort of the home. These features also make for easier integration with existing neighborhoods that include site-built homes, including urban infill.

To learn more about CHOICEHome eligibility, visit the Single-Family Seller Servicer Guide.

About Freddie Mac
Freddie Mac’s mission is to make home possible for families across the nation. We promote liquidity, stability and affordability in the housing market throughout all economic cycles. Since 1970, we have helped tens of millions of families buy, rent or keep their home. Learn More: Website | Consumers | X | LinkedIn | Facebook | Instagram | YouTube

MEDIA CONTACT:
Chad Wandler
703-903-2446
Chad_Wandler@FreddieMac.com

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