Freddie Mac Single-Family Seller/Servicer Guide Section 5601.1 — Property eligibility requirements

Freddie Mac Single-Family Seller/Servicer Guide Section 5601.1 — Property eligibility requirements

5601.1: Property eligibility requirements (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: ■ Eligible properties ■ Ineligible properties Freddie Mac expects the Seller to place as much emphasis on the adequacy of the property as collateral as it does on underwriting the Borrower’s creditworthiness. The conclusion that a Mortgage is eligible for sale to Freddie Mac must be based on the determination that the Borrower is creditworthy (acceptable credit reputation and capacity) and the Mortgaged Premises is adequate and acceptable collateral for the Mortgage transaction. The Seller is responsible for determining the eligibility of the property and the acceptability of the appraisal report. (a) Eligible properties Freddie Mac will purchase eligible Mortgages secured by residential properties in urban, suburban and rural Market Areas provided the Mortgaged Premises is adequate collateral for the Mortgage transaction based on the value, condition and marketability of the property. The Mortgaged Premises must: ■ Be located in a State ■ Be primarily residential in nature based on the characteristics of the property ■ Be an attached, semi detached or detached dwelling unit(s) located on an individual lot, in a Planned Unit Development (PUD), in a Condominium Project or in a Cooperative Project. See Section 5601.6 for eligibility of a property with two or more adjoining parcels. See Chapter 5701 for special requirements for condominiums. See Chapter 5705 for special requirements for cooperatives. ■ Be safe, sound and structurally secure. See Section 5605.5 for acceptable overall condition ratings and indications of unacceptable collateral conditions. Freddie Mac Single-Family Seller/Servicer Guide Chapter 5601 As of 05/06/26 Page 5601-2 ■ Be complete or comply with the conditions in Section 5601.3 for eligible incomplete improvements ■ Represent the highest and best use of the property as improved (or as proposed per plans and specifications) ■ Have an eligible zoning compliance in accordance with Section 5605.4(a)(i) ■ Have legal access (ingress and egress) (see Section 5605.4(a)(iv)) ■ Be suitable for year-round occupancy regardless of the location, except as specifically permitted otherwise in Section 4201.12 for certain second homes ■ Have utilities that meet community standards (see Section 5605.4(a)(iii)) ■ Have mechanical systems that meet community standards ■ Have adequate property insurance coverage that meets Freddie Mac’s requirements, including coverage for hazards specific to the location of the property ■ Not be subject to a pending legal proceeding for condemnation in whole or in part (b) Ineligible properties Freddie Mac does not purchase Mortgages secured by: ■ Vacant land, undeveloped land or land development properties ■ Properties used primarily for agriculture or farming ■ Properties used primarily for commercial enterprises (including, but not limited to, bed and breakfasts, boarding houses, Condominium Hotels and units located in a PUD operating as a hotel or similar type of transient housing that includes hotel type services and characteristics) A property being used as a group home for individuals with disabilities is not considered an ineligible property. A Mortgage secured by such a property may be eligible for sale to Freddie Mac, provided it meets the requirements of the Guide, including but not limited to the residential requirements described above in Section 5601.1(a) and the occupancy requirements identified in Sections 4201.11 and 4201.13. Note: See Section 5701.3 for a list of ineligible condominium project types and Section 5705.3 for a list of ineligible cooperative project types. Freddie Mac Single-Family Seller/Servicer Guide Chapter 5601 As of 05/06/26 Page 5601-3 5601.1: Property eligibility requirements (Future effective date 11/02/26) This section contains requirements related to: ■ Eligible properties ■ Ineligible properties Freddie Mac expects the Seller to place as much emphasis on the adequacy of the property as collateral as it does on underwriting the Borrower’s creditworthiness. The conclusion that a Mortgage is eligible for sale to Freddie Mac must be based on the determination that the Borrower is creditworthy (acceptable credit reputation and capacity) and the Mortgaged Premises is adequate and acceptable collateral for the Mortgage transaction. The Seller is responsible for determining the eligibility of the property and the acceptability of the appraisal report. (a) Eligible properties Freddie Mac will purchase eligible Mortgages secured by residential properties in urban, suburban and rural Market Areas provided the Mortgaged Premises is adequate collateral for the Mortgage transaction based on the value, condition and marketability of the property. The Mortgaged Premises must: ■ Be located in a State ■ Be primarily residential in nature based on the characteristics of the property ■ Be an attached, semi detached or detached dwelling unit(s) located on an individual lot, in a Planned Unit Development (PUD), in a Condominium Project or in a Cooperative Project. See Section 5605.4 for special requirements for two or more parcels. See Chapter 5701 for special requirements for condominiums. See Chapter 5705 for special requirements for cooperatives. ■ Be sound and have structural integrity. See Section 5605.5 for acceptable overall condition ratings and indications of unacceptable collateral conditions. ■ Be complete or comply with the conditions in Section 5601.3 for eligible incomplete improvements ■ Represent the highest and best use of the property as improved (or as proposed per plans and specifications) ■ Have an eligible zoning compliance in accordance with Section 5605.4(a)(i) Freddie Mac Single-Family Seller/Servicer Guide Chapter 5601 As of 05/06/26 Page 5601-4 ■ Have legal access (ingress and egress) (see Section 5605.4(a)(iv)) ■ Be suitable for year-round occupancy regardless of the location, except as specifically permitted otherwise in Section 4201.12 for certain second homes ■ Have utilities that meet community standards (see Section 5605.4(a)(iii)) ■ Have mechanical systems that meet community standards ■ Have adequate property insurance coverage that meets Freddie Mac’s requirements, including coverage for hazards specific to the location of the property ■ Not be subject to a pending legal proceeding for condemnation in whole or in part (b) Ineligible properties Freddie Mac does not purchase Mortgages secured by: ■ Vacant land, undeveloped land or land development properties ■ Properties used primarily for agriculture or farming ■ Properties used primarily for commercial enterprises (including, but not limited to, bed and breakfasts, boarding houses, Condominium Hotels and units located in a PUD operating as a hotel or similar type of transient housing that includes hotel type services and characteristics) A property being used as a group home for individuals with disabilities is not considered an ineligible property. A Mortgage secured by such a property may be eligible for sale to Freddie Mac, provided it meets the requirements of the Guide, including but not limited to the residential requirements described above in Section 5601.1(a) and the occupancy requirements identified in Sections 4201.11 and 4201.13. Note: See Section 5701.3 for a list of ineligible condominium project types and Section 5705.3 for a list of ineligible cooperative project types.

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