As factory-built homes gain more attention, more lenders are recognizing the need for loan programs specifically tailored to these high-quality, affordable housing options. Freddie Mac’s CHOICEHome® Mortgage is designed to make it easier to finance the purchase of factory-built homes. Specifically, modern manufactured homes that often match the quality, look, and feel of site-built homes. Here’s a closer look at the CHOICEHome program, what it offers, and how it can open up new possibilities for potential homebuyers and affordable housing professionals alike.
Understanding Freddie Mac’s CHOICEHome Program
Freddie Mac launched the CHOICEHome program to expand homeownership opportunities for those considering factory-built homes, including manufactured homes with features commonly found in site-built properties. The program provides financing options that can make these homes more accessible to a wider audience by treating qualifying manufactured homes similarly to site-built homes, allowing homebuyers to benefit from traditional mortgage terms and rates.
Key Features of a CHOICEHome Mortgage
- Comparable Terms & Rates: One of the main advantages of CHOICEHome is that it allows qualified manufactured homes to be financed with similar terms to site-built homes, which means interest rates and loan terms could be as competitive as site-built home loans.
- Down Payment Options: CHOICEHome loans typically have flexible down payment options, sometimes as low as 3% for qualified buyers, making homeownership more achievable for first-time and low-income homebuyers.
- Broad Eligibility: The program covers a range of high-quality manufactured homes, including those that meet specific criteria for energy efficiency, durability, and construction standards. These homes often feature robust foundations and design aesthetics, such as pitched roofs and covered porches, that align closely with site-built homes, allowing them to meet the appraisal requirements of traditional mortgages.
Advantages for Homebuyers
The CHOICEHome program offers significant benefits for potential homebuyers. Financing these homes like site-built homes means buyers can access conventional mortgage options, making factory-built housing an affordable, high-quality alternative. Moreover, as many manufactured homes are built to the ENERGY STAR® standards, homeowners may also enjoy lower utility costs, adding further affordability over time.
“Programs like Freddie Mac’s CHOICEHome mortgage help bridge the gap to affordable homeownership,” says Stacey Epperson, Next Step President & CEO. “It’s an opportunity for families to own energy-efficient, affordable homes that provide long-term stability and build equity.”
What CHOICEHome Means for Affordable Housing Professionals
For affordable housing professionals, Freddie Mac’s CHOICEHome program can be a powerful tool for expanding housing options in underserved markets. Manufactured homes are constructed faster and often at a lower cost than site-built homes, making them ideal for addressing housing shortages. With CHOICEHome, professionals in the housing sector can work with potential homeowners to provide a reliable, quality housing option that has the financial backing of a major lender.
Why Consider a Factory-Built Home?
Factory-built homes are increasingly recognized for their quality, efficiency, and cost-effectiveness. Advances in design, engineering, and materials have allowed these homes to meet or even exceed many of the standards of site-built homes while providing modern, customizable options for homebuyers.
In addition to affordability, factory-built homes offer the advantage of controlled construction environments, which leads to less waste and fewer delays due to weather conditions. As a result, they provide a timely solution for addressing housing demand in areas facing labor shortages or land scarcity.
Getting Started with CHOICEHome
To get started with Freddie Mac’s CHOICEHome program, interested buyers should work with a mortgage lender familiar with the program’s requirements. Affordable housing advocates and professionals can help potential buyers explore CHOICEHome options and find lenders who specialize in this type of financing.
Freddie Mac’s CHOICEHome mortgage opens doors for more people to consider factory-built homes as a viable and affordable homeownership option. By providing financing terms that align closely with site-built home loans, Freddie Mac is helping to shift perceptions and expand access to high-quality, modern housing. Whether you’re a potential buyer looking to take your first steps toward homeownership or an affordable housing professional seeking solutions to the housing crisis, the CHOICEHome mortgage could be the key to new possibilities.
For more information, consider contacting a mortgage lender or housing counselor who can guide you through the CHOICEHome application and help you determine if a factory-built home is the right fit for you. Find a HUD-certified counselor here. View mortgage lenders with experience in financing factory-built homes here.