Freddie Mac Single-Family Seller/Servicer Guide Section 4602.3 — Two-Time Close transactions

Freddie Mac Single-Family Seller/Servicer Guide Section 4602.3 — Two-Time Close transactions

4602.3: Two-Time Close transactions (02/04/26) 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. This section contains requirements related to: ■ Two-Time Close documentation structure ■ Mortgage purpose ■ Appraisal requirements (a) Two-Time Close documentation structure In a Two-Time Close transaction, the terms of the Interim Construction Financing and the terms of the Permanent Financing are documented on separate sets of loan instruments. The Mortgage file must include the Note and Security Instrument for the Permanent Financing, which must be documented on Uniform Instruments in accordance with Chapter 4101. (b) Mortgage purpose The Mortgage must be a “no cash-out” or cash-out refinance Mortgage. (i) “No cash-out” refinance Mortgage “No cash-out” refinance Mortgages must meet the requirements in Section 4301.4, except as stated below. For purposes of Section 4301.4, the amount of the Interim Construction Financing secured by the Mortgaged Premises is considered an amount used to pay off the first Mortgage as described in Section 4301.4. The proceeds of the Permanent Financing may be used to pay off a junior lien(s) secured by the Mortgaged Premises provided the lien(s) were used in their entirety for the construction or renovation of the subject property, as applicable, as documented in the Mortgage file. Paying off unsecured lien(s) or construction costs paid by the Borrower outside of the secured Interim Construction Financing is considered cash out to the Borrower, if above $2,000 or 1% of the loan amount, whichever is greater. Freddie Mac Single-Family Seller/Servicer Guide Chapter 4602 As of 02/04/26 Page 4602-27 (ii) Cash-out refinance Mortgage Cash-out refinance Mortgages must meet the requirements in Section 4301.5. Cash-out refinance Mortgages that are Construction to Permanent Mortgages and Renovation Mortgages must not be secured by Manufactured Homes. At least one Borrower must have been on the title to the land for six months or more prior to the Effective Date of Permanent Financing. Exception: The six-month minimum titling requirement does not need to be met when documentation in the Mortgage file evidences that at least one Borrower inherited or was legally awarded the land in accordance with a final judgment or decision from a legal body (e.g., court, jury, judge or arbitrator) such as in a case of divorce, separation or dissolution of a domestic partnership. (c) Appraisal requirements The Seller must obtain an appraisal report with an interior and exterior inspection. The appraisal report must include an “as completed” value of the property subject to completion of the improvements based on the plans and specifications. The Seller represents and warrants that the originating lender provided the appraiser with all the appraisal information required in Topic 5600, including plans and specifications. 4602.3: Two-Time Close transactions (Future effective date 11/02/26) This section contains requirements related to: ■ Two-Time Close documentation structure ■ Mortgage purpose ■ Appraisal requirements (a) Two-Time Close documentation structure In a Two-Time Close transaction, the terms of the Interim Construction Financing and the terms of the Permanent Financing are documented on separate sets of loan instruments. The Mortgage file must include the Note and Security Instrument for the Permanent Financing, which must be documented on Uniform Instruments in accordance with Chapter 4101. Freddie Mac Single-Family Seller/Servicer Guide Chapter 4602 As of 02/04/26 Page 4602-28 (b) Mortgage purpose The Mortgage must be a “no cash-out” or cash-out refinance Mortgage. (i) “No cash-out” refinance Mortgage “No cash-out” refinance Mortgages must meet the requirements in Section 4301.4, except as stated below. For purposes of Section 4301.4, the amount of the Interim Construction Financing secured by the Mortgaged Premises is considered an amount used to pay off the first Mortgage as described in Section 4301.4. The proceeds of the Permanent Financing may be used to pay off a junior lien(s) secured by the Mortgaged Premises provided the lien(s) were used in their entirety for the construction or renovation of the subject property, as applicable, as documented in the Mortgage file. Paying off unsecured lien(s) or construction costs paid by the Borrower outside of the secured Interim Construction Financing is considered cash out to the Borrower, if above $2,000 or 1% of the loan amount, whichever is greater. (ii) Cash-out refinance Mortgage Cash-out refinance Mortgages must meet the requirements in Section 4301.5. Cash-out refinance Mortgages that are Construction to Permanent Mortgages and Renovation Mortgages must not be secured by Manufactured Homes. At least one Borrower must have been on the title to the land for six months or more prior to the Effective Date of Permanent Financing. Exception: The six-month minimum titling requirement does not need to be met when documentation in the Mortgage file evidences that at least one Borrower inherited or was legally awarded the land in accordance with a final judgment or decision from a legal body (e.g., court, jury, judge or arbitrator) such as in a case of divorce, separation or dissolution of a domestic partnership. (c) Appraisal requirements The Seller must obtain a Traditional Appraisal Report, which must include an “as completed” value of the property subject to completion of the improvements based on the plans and specifications. The Seller represents and warrants that the originating lender provided the appraiser with all the appraisal information required in Topic 5600, including plans and specifications. Freddie Mac Single-Family Seller/Servicer Guide Chapter 4603 As of 04/12/26 Page 4603-1 Chapter 4603: Super Conforming Mortgages 4603.1: Definition of super conforming Mortgages (02/05/25) Super conforming Mortgages are Mortgages that are secured by properties located in High-Cost Areas and have original loan amounts meeting the loan limits in Section 4603.2. 4603.2: Minimum and maximum original loan amounts for super conforming Mortgages (01/01/26) The following minimum and maximum original loan amounts apply to Mortgages secured by properties in High-Cost Areas (“super conforming Mortgages”) that have Freddie Mac Funding Dates or Settlement Dates on or after January 1, 2026 and on or before December 31, 2026: Minimum/maximum original loan amounts for super conforming Mortgages Units Properties in the 48 contiguous States, the District of Columbia and Puerto Rico Properties in Alaska, Hawaii, Guam and the U.S. Virgin Islands** Minimum loan amount Maximum loan amount Minimum loan amount Maximum loan amount Permanent (HERA)* Permanent (HERA)* 1 $832,751 $1,249,125 $1,249,126 $1,873,675 2 $1,066,251 $1,599,375 $1,599,376 $2,399,050 3 $1,288,801 $1,933,200 $1,933,201 $2,899,800 4 $1,601,751 $2,402,625 $2,402,626 $3,603,925 *These are the maximum potential loan limits for designated High-Cost Areas, as determined under the provisions of the Housing and Economic Recovery Act of 2008 (HERA). Actual loan limits are established for each county (or equivalent) and the loan limits for specific High-Cost Areas may be lower. The original principal balance of a Mortgage must not exceed the maximum loan limit for the specific area in which the Mortgaged Premises is located. Freddie Mac Single-Family Seller/Servicer Guide Chapter 4603 As of 04/12/26 Page 4603-2 For specific loan limits for each High-Cost Area, as released by FHFA, visit: https://www.fhfa.gov/DataTools/Downloads/Pages/Conforming-Loan-Limit.aspx. **The only two counties in Alaska, Hawaii, Guam and the U.S. Virgin Islands that are High-Cost Areas in 2026 are Maui and Kalawao. For super conforming Mortgages, the Seller must use the loan amount of the Mortgage stated in the Note to determine compliance with the maximum loan limits stated above. 4603.3: Eligible and ineligible super conforming Mortgages (04/12/26) This section contains requirements related to: ■ Eligible Mortgages ■ Ineligible Mortgages (a) Eligible Mortgages A super conforming Mortgage must be a: ■ Fixed-rate Mortgage, or ■ 5/6-Month, 7/6-Month or 10/6-Month ARM (b) Ineligible Mortgages Super conforming Mortgages must not be: ■ ARMs with Initial Periods of less than five years ■ Government Mortgages ■ HeritageOne® Mortgages ■ Home Possible® Mortgages ■ HomeOne® Mortgages ■ Mortgages secured by a Manufactured Home ■ Seller-Owned Converted Mortgages ■ Seller-Owned Modified Mortgages Freddie Mac Single-Family Seller/Servicer Guide Chapter 4603 As of 04/12/26 Page 4603-3 4603.4: Underwriting requirements for super conforming Mortgages (08/06/25) This section contains: ■ General underwriting requirements for all super conforming Mortgages ■ Accept Mortgages ■ Manually Underwritten Mortgages (a) General underwriting requirements for all super conforming Mortgages All super conforming Mortgages must be submitted to Loan Product Advisor®. The Seller must enter the Key Number (which is referred to as the Loan Prospector AUS Key Number in Loan Selling Advisor) in the ULDD Data Point Automated Underwriting Case Identifier for all super conforming Mortgage transactions. (b) Accept Mortgages The Borrower’s credit reputation is acceptable if the Mortgage receives a Risk Class of Accept. (c) Manually Underwritten Mortgages The following super conforming Mortgages must be manually underwritten: ■ Caution Mortgages ■ Mortgages submitted to Loan Product Advisor that did not receive a Risk Class Super conforming Mortgages that are manually underwritten must: ■ Meet the requirements of Topics 5100 through 5500 ■ Meet the minimum Indicator Score requirements in Exhibit 25, Mortgages with Risk Class and/or Minimum Indicator Score Requirements ■ Have an acceptable credit reputation without the use of noncredit payment references Freddie Mac Single-Family Seller/Servicer Guide Chapter 4603 As of 04/12/26 Page 4603-4 4603.5: Appraisal requirements for super conforming Mortgages (02/04/26) The Seller must obtain an appraisal that meets Freddie Mac requirements unless the Last Feedback Certificate includes an automated collateral evaluation (ACE) offer stating that the Mortgage is eligible for collateral representation and warranty relief with ACE or ACE+ PDR and the Seller has accepted the offer. Refer to Section 5602.3 for more information on ACE or Section 5602.4 for information on ACE+ PDR. 4603.6: Delivery and pooling requirements for super conforming Mortgages (02/05/25) Refer to Section 6302.31 for delivery and pooling requirements for super conforming Mortgages. 4603.7: Credit Fees for super conforming Mortgages (02/05/25) The Seller must refer to Exhibit 19, Credit Fees, for Credit Fees related to super conforming Mortgages. Credit Fees are paid in accordance with the Credit Fee provisions stated in Chapter 6303. Freddie Mac Single-Family Seller/Servicer Guide Chapter 4604 As of 01/01/22 Page 4604-1 Chapter 4604: Affordable Merit Rate® Mortgages 4604.1: Purchase of Affordable Merit Rate® Mortgages (01/01/22) Effective January 1, 2022, Section 4604.1 is deleted. 4604.2: Eligible Affordable Merit Rate® Mortgages (01/01/22) Effective January 1, 2022, Section 4604.2 is deleted. 4604.3: Special underwriting requirements for Affordable Merit Rate® Mortgages (01/01/22) Effective January 1, 2022, Section 4604.3 is deleted. 4604.4: Other requirements for Affordable Merit Rate® Mortgages (01/01/22) Effective January 1, 2022, Section 4604.4 is deleted. Freddie Mac Single-Family Seller/Servicer Guide Chapter 4605 As of 04/01/26 Page 4605-1 Chapter 4605: HomeOne® Mortgages

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