Freddie Mac Expands Financing Options to Increase Availability of Affordable Housing
Rhea-AI Summary
Freddie Mac (OTCQB: FMCC) has announced a significant expansion of its CHOICEHome financing program to include modern single-section factory-built homes, effective August 6, 2025. This industry-first initiative aims to increase affordable housing availability through conventional financing options.
The program offers 3% down payment options for these homes, which typically cost around $200,000 including land, compared to traditional site-built homes averaging over $500,000. CHOICEHome mortgages require specific construction standards, including permanent foundations, energy-efficient designs, and enhanced durability features to ensure quality and neighborhood integration.
Positive
- Expansion of affordable housing options with homes costing ~$200,000 vs. $500,000 for traditional homes
- Low 3% down payment option makes homeownership more accessible
- Program enables conventional mortgage financing for factory-built homes
- Enhanced construction standards ensure quality and integration with existing neighborhoods
Negative
- Potential market adoption challenges due to traditional preferences for site-built homes
- Limited availability of qualified factory-built homes meeting CHOICEHome standards
News Market Reaction 1 Alert
On the day this news was published, FMCC declined 3.41%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
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
Freddie Mac’s existing financing options include financing for multi-section factory-built homes with a
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
FAQ
What is Freddie Mac's new CHOICEHome financing program for factory-built homes?
How much do single-section factory-built homes cost under Freddie Mac's program?
What construction standards are required for Freddie Mac's CHOICEHome financing?
When does Freddie Mac's new factory-built home financing program start?
What down payment is required for Freddie Mac's factory-built home financing?
