Freddie Mac Single-Family Seller/Servicer Guide 5601.5 — Eligibility of a property with mixed-use
Freddie Mac Guide §5601.5 (Eligibility of a property with mixed-use). Gap-fill (verbatim, ID-diff).
Verbatim regulatory text
Verbatim provisions from Freddie Mac Single-Family Seller/Servicer Guide 5601.5 — Eligibility of a property with mixed-use — 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 5601.5 — Eligibility of a property with mixed-use (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. 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.
Freddie Mac Single-Family Seller/Servicer Guide 5601.5 — Eligibility of a property with mixed-use (part 2 of 2)
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.
Operationalizing Freddie Mac Single-Family Seller/Servicer Guide 5601.5 — Eligibility of a property with mixed-use
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-5601-5/
· register fhlmc-5601-5 · Claude for Compliance. Free to read and download;
see regulatory updates and methodology.