source:
  type: guide
  id: fhlmc-4201.13
  authority: Freddie Mac Single-Family Seller/Servicer Guide Section 4201.13 — Investment
    Property Mortgages
  description: Freddie Mac Single-Family Seller/Servicer Guide Section 4201.13 — Investment
    Property Mortgages.
  coverage_tier: operative
obligations:
- id: fhlmc-4201.13-full
  canonical_id: fhlmc-4201.13-full
  section: Freddie Mac Single-Family Seller/Servicer Guide Section 4201.13 — Investment
    Property Mortgages
  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 4201.13 — Investment
      Property Mortgages
    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: '4201.13: Investment Property Mortgages (03/04/26) Mortgages
      secured by Investment Properties are eligible for sale to Freddie Mac in accordance
      with the requirements of this section. This section contains: ■ Eligibility
      requirements ■ Special underwriting requirements ■ Uniform Instrument requirements
      ■ Delivery requirements for rental income from all subject 1- to 4-unit Investment
      Properties ■ Credit Fees (a) Eligibility requirements The following eligibility
      requirements apply to Investment Property Mortgages: Freddie Mac Single-Family
      Seller/Servicer Guide Chapter 4201 As of 03/04/26 Page 4201-12 ■ The Mortgage
      must be an Accept Mortgage ■ Mortgages with temporary subsidy buydowns are not
      eligible for sale to Freddie Mac ■ Mortgages made to Borrowers who own more
      than one financed Investment Property are eligible for sale to Freddie Mac,
      provided that the Investment Property Mortgage being sold to Freddie Mac is:
      ❑ An eligible fixed-rate, level-payment Mortgage, or ❑ A 7/6-Month or 10/6-Month
      ARM (b) Special underwriting requirements (i) Maximum number of financed properties
      Each Borrower individually and all Borrowers collectively must not be obligated
      on (e.g., Notes, land contracts and/or any other debt or obligation) more than
      10 1- to 4-unit financed properties, including the subject property and the
      Borrower’s Primary Residence. Examples of financed properties that do not have
      to be counted in these limitations include: ■ Commercial real estate ■ Multifamily
      (five or more units) real estate ■ Timeshares ■ Undeveloped land ■ Manufactured
      homes not titled as real property (chattel lien), unless the property is situated
      on the land that is titled as real property ■ Property titled in the name of
      the Borrower’s business if the Borrower, in their individual capacity, is not
      obligated on Notes, land contracts and/or any debt or obligation related to
      such property ■ Property titled in the name of a trust where the Borrower is
      a trustee if the Borrower, in their individual capacity, is not obligated on
      Notes, land contracts and/or any debt or obligation related to such property
      Freddie Mac Single-Family Seller/Servicer Guide Chapter 4201 As of 03/04/26
      Page 4201-13 (ii) Reserve requirements for Investment Property Mortgages Regardless
      of whether rental income from the Mortgaged Premises is used in qualifying,
      the reserves requirements in Section 5501.2 must be met. (iii) Rental income
      from an Investment Property Refer to Section 5306.1 for requirements related
      to rental income. (iv) Borrower’s monthly housing expense-to-income ratio The
      monthly housing expense related to the Borrower’s current Primary Residence
      must be used in calculating the Borrower’s monthly housing expense-to-income
      ratio. (v) Asset eligibility limitations All funds used to qualify the Borrower
      for the Mortgage, which includes any funds required to be paid by the Borrower
      and Borrower reserves, must be Borrower personal funds, as described in Section
      5501.3, with the exception of pooled funds, which are not an eligible source
      of funds for Investment Property Mortgages. (vi) Newly constructed homes For
      purchases of newly constructed homes, the Borrower may not be affiliated with
      or related to the builder, developer or property seller. For these purposes,
      “affiliated with” means that the Borrower may not have an ownership interest
      in or employment with the builder, developer or property seller. (c) Uniform
      Instrument requirements Form 3170, 1-4 Family Rider, is required for all Mortgages
      secured by Investment Properties. Note: See Exhibit 5A, Authorized Changes to
      Notes, Riders, Security Instruments and the Uniform Residential Loan Application,
      Section VIII, for authorized changes to the 1-4 Family Rider for Investment
      Property Mortgages. (d) Delivery requirements for rental income from all subject
      1- to 4-unit Investment Properties Regardless of whether rental income from
      the subject 1- to 4-unit Primary Residence is being used to qualify the Borrower,
      the Seller must deliver ULDD Data Point Property Dwelling Unit Eligible Rent
      Amount for: ■ Subject 1-unit Investment Property Freddie Mac Single-Family Seller/Servicer
      Guide Chapter 4201 As of 03/04/26 Page 4201-14 ■ Each unit in a subject 2- to
      4-unit Investment Property Note: See Section 6302.8 for delivery requirements
      for rental income. (e) Credit Fees The Seller must refer to Exhibit 19, Credit
      Fees, for Credit Fees related to Investment Property Mortgages. Credit Fees
      are paid in accordance with the Credit Fee provisions stated in Chapter 6303.'
  judgment: false
