source:
  type: guide
  id: fhlmc-5601.1
  authority: Freddie Mac Single-Family Seller/Servicer Guide Section 5601.1 — Property
    eligibility requirements
  description: Freddie Mac Single-Family Seller/Servicer Guide Section 5601.1 — Property
    eligibility requirements.
  coverage_tier: operative
obligations:
- id: fhlmc-5601.1-full
  canonical_id: fhlmc-5601.1-full
  section: Freddie Mac Single-Family Seller/Servicer Guide Section 5601.1 — Property
    eligibility requirements
  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 5601.1 — Property
      eligibility requirements
    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: '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.'
  judgment: false
