Mortgages for newly constructed homes

Borrowers who have newly constructed homes, or those who happen to have had renovations done on their homes, can take advantage of mortgages for newly constructed homes which are great opportunities to transition into more permanent financing. Mortgages for newly constructed homes work well for borrowers who may be applying for a loan for the first time or move-up borrowers and these mortgages can be used on a primary residence, an investment property, a second home, site built homes that have one to four units, and manufactured homes that have one unit. They can also be used in combination with other Freddie Mac mortgage products in order to have a more personalized loan plan that allows the borrower to meet all their needs.

If the home is newly built or newly constructed, the borrower should not own the land that the property is built on and should not have applied for or received any other sort of financing during the construction of the property. If the homeowner is applying for construction conversion or a renovation mortgage, they can still utilize the mortgages for newly constructed homes program, however, the borrower applying for the permanent financing and mortgage should be the same as that who applied and received any interim construction financing or any other kind of financing that has yet to be paid.

It is important for all borrowers to note that mortgages for newly constructed homes should be used for purchase purposes only. Mortgages for newly constructed homes can also be used for the proposed construction of a new home or for a home that may be in the middle of construction during the loan application.

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