Freddie Mac Single-Family Seller/Servicer Guide 5601.5 — Eligibility of a property with mixed-use

Freddie Mac Single-Family Seller/Servicer Guide 5601.5 — Eligibility of a property with mixed-use

Effective 2026-01-26 · Freddie Mac's stamp for this section

Refer to Bulletin 2025-7, which announced the policy requirements for Uniform Appraisal Dataset (UAD) 3.6. Sellers may submit to the Uniform Collateral Data Portal® appraisal reports that use UAD 3.6 before the mandatory effective November 2, 2026 version of this section. Freddie Mac purchases Mortgages secured by residential properties with mixed-use characteristics. This section contains: ■ Eligibility requirements ■ Appraiser requirements (a) Eligibility requirements A residential property with mixed-use must meet the following requirements: ■ The property must be a 1-unit Primary Residence ■ The property must be located in a predominantly residential Neighborhood, be primarily residential in nature based on the characteristics of the property and be typical for the properties in the Market Area ■ The mixed-use must represent a legal, permissible use of the property under the local zoning requirements ■ If the property has a commercial use, the Borrower must be the owner and the operator of the business ■ The dwelling may not be modified in a manner that has an adverse impact on its marketability as a residence ■ The commercial use must not have an adverse effect on the habitability and safety of the property or site (b) Appraiser requirements The appraiser must provide the following when appraising a mixed-use property: ■ An appraisal with an interior and exterior inspection ■ A detailed description of any accommodations made for the commercial use of the subject property ■ A discussion of any positive or adverse impacts of the commercial use and whether the cost to restore the property to solely residential use will affect its value ■ A statement describing any market resistance to the commercial use and adjustments for any commercial features made to the comparable sales ■ An opinion of market value based on the property’s residential nature Note: See Section 5701.8(b)(ii) for Condominium Unit live-work requirements.

Source: Freddie Mac Single-Family Seller/Servicer Guide 5601.5 — Eligibility of a property with mixed-use · source URL · snapshot 4c94f67729042dd6

Freddie Mac Single-Family Seller/Servicer Guide 5601.5 — Eligibility of a property with mixed-use — PENDING VERSION, takes effect 2026-11-02

Not yet in force. This is the pending version of the section, which takes effect 2026-11-02. The other version on this page governs until then.

Effective 2026-11-02 · Freddie Mac's stamp for this section

Freddie Mac purchases Mortgages secured by residential properties with mixed-use characteristics. This section contains: ■ Eligibility requirements ■ Appraisal report requirements (a) Eligibility requirements A residential property with mixed-use must meet the following requirements: ■ The property must be a 1-unit Primary Residence ■ The property must be located in a predominantly residential Neighborhood, be primarily residential in nature based on the characteristics of the property and be typical for the properties in the Market Area ■ The mixed-use must represent a legal, permissible use of the property under the local zoning requirements ■ If the property has a commercial use, the Borrower must be the owner and the operator of the business ■ The dwelling may not be modified in a manner that has an adverse impact on its marketability as a residence ■ The commercial use must not have an adverse effect on the habitability and safety of the property or site (b) Appraisal report requirements The Seller must deliver a Traditional Appraisal Report or Hybrid Appraisal Report that includes: ■ The type(s) of non-residential use observed on the property ■ Identification of whether the use is adverse, beneficial or neutral. If the use is adverse or beneficial, a description of the impact to value or marketability is required ■ Commentary related to whether the cost to restore the property to solely residential use will affect its value ■ Commentary describing any market resistance to the commercial use ■ Adjustments to the comparable sales related to the commercial use ■ An opinion of market value based on the property’s residential use Note: See Section 5701.8(b)(ii) for Condominium Unit live-work requirements.

Source: Freddie Mac Single-Family Seller/Servicer Guide 5601.5 — Eligibility of a property with mixed-use · source URL · snapshot 4c94f67729042dd6