Freddie Mac Single-Family Seller/Servicer Guide 5601.2 — Eligibility of a property with an ADU
Freddie Mac Single-Family Seller/Servicer Guide Section 5601.2 — Eligibility of a property with an ADU.
Verbatim regulatory text
Verbatim provisions from Freddie Mac Single-Family Seller/Servicer Guide 5601.2 — Eligibility of a property with an ADU — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
Freddie Mac Single-Family Seller/Servicer Guide 5601.2 — Eligibility of a property with an ADU (part 1 of 2)
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 with ADUs ■ Ineligible properties with ADUs ■ Appraisal requirements ■ Manufactured Home ADUs (a) Eligible properties with ADUs Freddie Mac will purchase an eligible Mortgage secured by a 1-, 2- or 3-unit property that has one ADU. For Mortgages secured by Manufactured Homes, including CHOICEHomes®, with an ADU, the primary dwelling unit must be a multiwide Manufactured Home. An ADU is classified as an additional finished area that: ■ Includes a kitchen, bathroom and separate entrance. Note: The absence of cooking appliance(s) in a kitchen does not change the classification as an ADU. ■ Is independent of the primary dwelling unit ■ Is smaller in size than the primary dwelling unit (i.e., the ADU’s finished area is less than the primary dwelling unit’s finished area) and ■ Contributes less to the value of the property than the primary dwelling unit Examples of eligible ADU configurations include: ■ A 1-, 2-, or 3-unit dwelling with an ADU above a garage or outbuilding, ■ A dwelling with an attached or detached ADU, or ■ A dwelling with an ADU in the basement (b) Ineligible properties with ADUs Mortgages secured by the following ADU configurations are not eligible for purchase by Freddie Mac: ■ A 2- or 3-unit property with an ADU that does not comply with zoning and land use requirements (illegal zoning) ■ A 1-, 2- or 3-unit property with two or more ADUs ■ A 4-unit property with an ADU (c) Appraisal requirements The appraiser must determine whether the subject property has an ADU and report the appraisal on the appropriate form. When determining whether the subject property has an ADU, the appraiser must consider zoning and land use requirements and all property characteristics, specifically the unit’s utility and the property’s highest and best use. If the appraiser determines the subject property has an ADU, the appraisal report must include: ■ A detailed description of the ADU ■ Any effect the ADU has on the market value or marketability of the subject property ■ Specific information about the ADU, including but not limited to its general condition, its room count (including the number of bedrooms and baths) and the finished square footage area (i) For properties with legal or legal non-conforming zoning compliance or locations without zoning If the subject property ADU complies with the zoning and land use requirements (legal or legal non-conforming or locations without zoning), the appraisal report must include the following: ■ At least one comparable sale with an ADU, when available, is required to demonstrate the property’s conformity and marketability to its Market Area ❑ If a recent comparable sale with an ADU is not available in the subject’s Market Area, the appraiser can use an older sale with an ADU from the subject’s Market Area or a sale with an ADU from a competing Market Area as a comparable sale or as supporting market data ❑ The appraiser may always use more than three comparable sales, including contract sales (pending sales) and/or current listings, to justify and support his or her adjustments and opinion of market value, as long as at least three are actual closed (settled) sales ■ If a comparable sale with an ADU is not available, the appraiser can use a comparable sale in the subject’s Market Area without an ADU as long as the appraiser can justify and support such use in the appraisal report. Freddie Mac will purchase eligible Mortgages secured by a property with an ADU if the appraiser can develop a credible opinion of market value for the property. (ii) Comparable requirements for properties with illegal zoning compliance If the subject property ADU does not comply with the zoning and land use requirements (illegal zoning), the Mortgage is eligible if: ■ The subject property is a 1-unit property with an ADU ■ The appraisal contains at least two comparable sales with an ADU that is noncompliant with the zoning and land use requirements (illegal zoning) to demonstrate the marketability of the subject property to its Market Area; and ■ The Seller confirms that the existence of the ADU will not jeopardize future hazard insurance claims Note: 2- or 3-unit properties with an ADU that do not comply with the zoning and land use requirements (illegal zoning) are not eligible for sale to Freddie Mac. (d) Manufactured Home ADUs Freddie Mac will purchase a Mortgage secured by a 1-, 2-, or 3-unit property that contains a Manufactured Home ADU that meets the following additional requirements: ■ The Manufactured Home ADU must be legally classified as real property ■ The Manufactured Home ADU must have a minimum of 400 square feet of finished area ■ The Manufactured Home ADU must meet the general requirements related to Manufactured Homes in Section 5703.2, property eligibility requirements in Section 5703.3(a) and titling and lien requirements in Section 5703.4 For Mortgages secured by Manufactured Homes, including CHOICEHomes, containing an ADU, the primary dwelling unit must be a multiwide Manufactured Home.
Freddie Mac Single-Family Seller/Servicer Guide 5601.2 — Eligibility of a property with an ADU (part 2 of 2)
■ Eligible properties with ADUs ■ Ineligible properties with ADUs ■ Appraisal report requirements ■ Manufactured Home ADUs (a) Eligible properties with ADUs Freddie Mac will purchase an eligible Mortgage secured by a 1-, 2- or 3-unit property that has one ADU. For Mortgages secured by Manufactured Homes, including CHOICEHomes®, with an ADU, the primary dwelling unit must be a multiwide Manufactured Home. An ADU is classified as an additional finished area that: ■ Includes a kitchen, bathroom and separate entrance. Note: The absence of cooking appliance(s) in a kitchen does not change the classification as an ADU. ■ Is independent of the primary dwelling unit ■ Is smaller in size than the primary dwelling unit (i.e., the ADU’s finished area is less than the primary dwelling unit’s finished area) and ■ Contributes less to the value of the property than the primary dwelling unit Examples of eligible ADU configurations include: ■ A 1-, 2-, or 3-unit dwelling with an ADU above a garage or outbuilding, ■ A dwelling with an attached or detached ADU, or ■ A dwelling with an ADU in the basement (b) Ineligible properties with ADUs Mortgages secured by the following ADU configurations are not eligible for purchase by Freddie Mac: ■ A 2- or 3-unit property with an ADU that does not comply with zoning and land use requirements (illegal zoning) ■ A 1-, 2- or 3-unit property with two or more ADUs ■ A 4-unit property with an ADU (c) Appraisal report requirements The appraisal report must identify whether the subject property has an ADU. When determining whether the subject property has an ADU, the appraiser must consider zoning and land use requirements and all property characteristics, specifically the unit’s utility and the property’s highest and best use. If the appraiser determines the subject property has an ADU, the appraisal report must include: ■ A detailed description of the ADU ■ Any effect the ADU has on the market value or marketability of the subject property ■ Specific information about the ADU, including, but not limited to, its location within the dwelling, its interior condition, its room summary (e.g., bathrooms, bedrooms, kitchen) and the above-grade and below-grade finished and unfinished area (i) For properties with legal or legal non-conforming zoning compliance or locations without zoning If the subject property ADU complies with the zoning and land use requirements (legal or legal non-conforming or locations without zoning), the appraisal report must include the following: ■ At least one comparable sale with an ADU, when available, is required to demonstrate the property’s conformity and marketability to its Market Area ❑ If a recent comparable sale with an ADU is not available in the subject property’s Market Area, the appraisal report can include an older sale with an ADU from the subject property’s Market Area or a sale with an ADU from a competing Market Area as a comparable sale or as supporting market data ❑ The appraisal report may include more than three comparable sales, including contract sales (pending sales) and/or current listings, to support the adjustments and the opinion of market value, as long as at least three are closed (settled) sales ■ If a comparable sale with an ADU is not available, the appraisal report can include comparable sales in the subject property’s Market Area without an ADU as long as the appraisal report includes justification for such use (ii) Comparable requirements for properties with illegal zoning compliance If the subject property ADU does not comply with the zoning and land use requirements (illegal zoning), the Mortgage is eligible for sale to Freddie Mac if: ■ The subject property is a 1-unit property with an ADU ■ The appraisal report includes at least two comparable sales with an ADU that is noncompliant with the zoning and land use requirements (illegal zoning) to demonstrate the marketability of the subject property to its Market Area; and ■ The Seller confirms that the existence of the ADU will not jeopardize future hazard insurance claims Note: A Mortgage secured by a 2- or 3-unit property with an ADU that does not comply with the zoning and land use requirements (illegal zoning) is not eligible for sale to Freddie Mac. (d) Manufactured Home ADUs Freddie Mac will purchase a Mortgage secured by a 1-, 2-, or 3-unit property that contains a Manufactured Home ADU that meets the following additional requirements: ■ The Manufactured Home ADU must be legally classified as real property ■ The Manufactured Home ADU must have a minimum of 400 square feet of finished area ■ The Manufactured Home ADU must meet the general requirements related to Manufactured Homes in Section 5703.2, property eligibility requirements in Section 5703.3(a) and titling and lien requirements in Section 5703.4 For Mortgages secured by Manufactured Homes, including CHOICEHomes, containing an ADU, the primary dwelling unit must be a multiwide Manufactured Home.
Operationalizing Freddie Mac Single-Family Seller/Servicer Guide 5601.2 — Eligibility of a property with an ADU
This is verbatim, source-snapshotted regulator text from the Claude for Compliance open corpus. To turn a rule like this into compliance work product: gap-analyze your policies and procedures (P&Ps) against these requirements to surface stale, conflicting, or missing provisions; operationalize any change with a ready-to-run update kit; and produce audit-ready evidence — every step grounded only in the regulator’s own words, never invented.
To work from the whole rulebook rather than this one page: download the corpus — every register on this site, verbatim, each with its source snapshot and effective date — then follow the methodology. It asks your assistant to answer only from the downloaded text, cite the register id and effective date it used, and tell you when the corpus does not cover something instead of filling the gap from memory. Running it locally also means no one sees which regulations you are looking at.
Source of record: https://claudeforcompliance.com/regs/fhlmc-5601-2/
· register fhlmc-5601-2 · Claude for Compliance. Free to read and download;
see regulatory updates and methodology.