source:
  type: guide
  id: fhlmc-4602.3
  authority: Freddie Mac Single-Family Seller/Servicer Guide Section 4602.3 — Two-Time
    Close transactions
  description: Freddie Mac Single-Family Seller/Servicer Guide Section 4602.3 — Two-Time
    Close transactions.
  coverage_tier: operative
obligations:
- id: fhlmc-4602.3-full
  canonical_id: fhlmc-4602.3-full
  section: Freddie Mac Single-Family Seller/Servicer Guide Section 4602.3 — Two-Time
    Close transactions
  type: do
  tags:
  - regulator-direct
  - fhlmc
  - freddie-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide Section 4602.3 — Two-Time
      Close transactions
    source_class: fhlmc-guide
    source_url: https://guide.freddiemac.com/ci-guide
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-05-23T00:27:40Z'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '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'
  judgment: false
