Freddie Mac Single-Family Seller/Servicer Guide 4201.11 — Mortgages secured by Primary Residences

Freddie Mac Single-Family Seller/Servicer Guide 4201.11 — Mortgages secured by Primary Residences

Effective 2025-10-01 · Freddie Mac's stamp for this section

This section contains information related to: ■ Occupancy requirements ■ Rental income from a Primary Residence ■ Other Guide provisions ■ Delivery requirements for rental income from all subject 2- to 4-unit Primary Residences (a) Occupancy requirements A Mortgage is considered to be secured by a Primary Residence when at least one of the Borrowers occupies all or part of the Mortgaged Premises as a Primary Residence as of the Delivery Date. For Manually Underwritten Mortgages with a loan-to-value ratio greater than 90%, each Borrower whose income or financial strength was used for qualification purposes must occupy all or part of the Mortgaged Premises as a Primary Residence as of the Delivery Date. Exceptions: ■ A Mortgage is considered to be secured by a Primary Residence when made to an activeduty military Borrower who is unable to occupy the Primary Residence prior to the Delivery Date due to military service when the following requirements are met: ❑ The Mortgage file must contain the Borrower’s military orders verifying the Borrower is temporarily unable to occupy the Primary Residence due to the military assignment ❑ The Seller must deliver ULDD Data Point Investor Feature Identifier valid value “D76”. See Section 6302.8(a) for more information. ■ A Mortgage is considered to be secured by a Primary Residence when the Mortgaged Premises is occupied as a Primary Residence by an individual(s) who is the Borrower’s parent(s) ■ A Mortgage is considered to be secured by a Primary Residence when the Mortgaged Premises is occupied as a Primary Residence by an individual(s) who has a disability and the Borrower is their parent or legal guardian (b) Rental income from a Primary Residence Rental income generated from a Mortgage secured by a Primary Residence is not permitted to qualify the Borrower, except as stated in Section 4501.6 for Home Possible® Mortgages and Section 5306.1 for rental income from a live-in aide or rental income generated from an ADU. (c) Other Guide provisions Refer to the following Guide provisions for additional information related to Mortgages secured by Primary Residences: Other Guide provisions related to Mortgages secured by Primary Residences Guide provision Guide location Mortgages with a non-occupying Borrower Section 5103.1 Special occupancy requirement for Mortgages made pursuant to employee relocation programs Section 4408.1(c) Special occupancy requirement for CHOICERenovation® In Progress Mortgages Section 4607.3(b) (d) Delivery requirements for rental income from all subject 2- to 4-unit Primary Residences Regardless of whether rental income from the subject 2- to 4-unit Primary Residence is being used to qualify the Borrower, the Seller must deliver the ULDD Data Point Property Dwelling Unit Eligible Rent Amount for each non-owner occupied unit in a subject 2- to 4unit Primary Residence. Note: See Section 6302.8 for delivery requirements for rental income.

Source: Freddie Mac Single-Family Seller/Servicer Guide 4201.11 — Mortgages secured by Primary Residences · source URL · snapshot 4c94f67729042dd6