source:
  type: guide
  id: fhlmc-4101.9
  authority: Freddie Mac Single-Family Seller/Servicer Guide Section 4101.9 — Due-on-sale
    provisions
  description: Freddie Mac Single-Family Seller/Servicer Guide Section 4101.9 — Due-on-sale
    provisions.
  coverage_tier: operative
obligations:
- id: fhlmc-4101.9-full
  canonical_id: fhlmc-4101.9-full
  section: Freddie Mac Single-Family Seller/Servicer Guide Section 4101.9 — Due-on-sale
    provisions
  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 4101.9 — Due-on-sale
      provisions
    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: '4101.9: Due-on-sale provisions (07/09/25) This section contains
      requirements related to: ■ Description of due-on-sale clauses ■ Types of due-on-sale
      clauses ■ Summary of due-on-sale characteristics ■ Exceptions for applicable
      laws and certain circumstances (a) Description of due-on-sale clauses The “due-on-sale”
      clauses in the Uniform Instruments include provisions governing whether the
      loan will be accelerated if the Borrower sells or transfers the Mortgaged Premises
      or any Freddie Mac Single-Family Seller/Servicer Guide Chapter 4101 As of 02/04/26
      Page 4101-15 interest in the Mortgaged Premises, or whether instead the loan
      may be assumed by a third party who acquires the Mortgaged Premises or any interest
      in the Mortgaged Premises by sale or transfer. Uniform Instruments for different
      Mortgage products may have different due-on-sale clauses. The type of due-on-sale
      clause set forth in the Uniform Instruments used to originate a particular Mortgage
      determines whether the Mortgage is assumable by the party to whom the Mortgaged
      Premises is transferred. The Uniform Instruments used in connection with the
      origination of ARMs contain due-on- sale provisions governing whether the loan
      will be accelerated if the Borrower sells or transfers the Mortgaged Premises
      or any interest in the Mortgaged Premises, or whether instead the loan may be
      assumed by a third party who acquires the Mortgaged Premises or any interest
      in the Mortgaged Premises. (b) Types of due-on-sale clauses Due on sale clauses
      Type Description Nonassumable during the life of the loan Some due-on-sale clauses
      provide that the lender will require immediate payment in full of all sums secured
      by the Security Instrument (generally referred to as accelerating the loan)
      if the Borrower sells or transfers the Mortgaged Premises. The effect of this
      type of due-on-sale clause is that the Mortgage is nonassumable for the life
      of the loan. The Uniform Instruments used with fixed-rate Mortgages include
      this type of due-on-sale clause. Assumable during the life of the loan Some
      due-on-sale clauses state that the lender will not accelerate the loan if the
      lender evaluates the proposed sale or transfer as if a new loan were being made
      to the intended transferee, and if the lender determines the lender’s security
      would not be impaired by the loan assumption. The effect of this type of due-on-sale
      clause is that the Mortgage is assumable for the life of the loan. Freddie Mac
      makes available ARM Uniform Instruments for all ARM indices that include this
      type of due- on-sale clause. Assumable until a specified event, then nonassumable
      Some due-on-sale clauses provide that the loan is assumable until the occurrence
      of a specified event, but after that specified event has occurred, the loan
      is nonassumable. Nonassumable during a Some due-on-sale clauses provide that
      during an initial specified period of time, the loan is nonassumable, but after
      that specified period of time, Freddie Mac Single-Family Seller/Servicer Guide
      Chapter 4101 As of 02/04/26 Page 4101-16 specified period of time and assumable
      thereafter the loan is assumable provided certain conditions are met. With respect
      to an ARM, the specified period of time is the end of the Initial Period. ARMs
      must be assumable during the entire period during which the interest rate is
      adjustable. Freddie Mac makes available ARM Uniform Instruments for 6-Month
      SOFR-indexed ARMs that include this type of due-on-sale clause, and the Mortgages
      become assumable after the end of the Initial Period when the Note Rate begins
      to adjust. Nonassumable during a specified period of time and thereafter assumable
      until a specified event, and then nonassumable Some due-on-sale clauses include
      the following information: ■ An initial specified period during which the Mortgage
      is nonassumable ■ A statement that the loan is assumable after the initial specified
      period and provided certain conditions are met, and ■ A statement that the loan
      is nonassumable upon the occurrence of a specified event (c) Summary of due-on-sale
      characteristics Fixed-rate Mortgages must be originated as follows: ■ For all
      fixed-rate Mortgages other than those listed in the bullet below, on Uniform
      Instruments that provide for the Mortgage to be nonassumable ■ For fixed-rate
      assumable Mortgages sold under the Guarantor program, on Uniform Instruments
      that provide for the Mortgage to be nonassumable and were executed with a Note
      Addendum and a Security Instrument Rider that provide for the Mortgage to be
      assumable subject to certain conditions (an “Assumable Mortgage”). The Note
      Addendum and Security Instrument Rider are available on Freddie Mac’s Uniform
      Instrument webpage at https://sf.freddiemac.com/tools-learning/uniform- instruments/2021-updated-instruments.
      ■ The Seller must obtain Freddie Mac’s written approval before selling Assumable
      Mortgages to Freddie Mac by contacting its Freddie Mac representative or Customer
      Service at 800-FREDDIE All 6-Month SOFR-indexed ARMs may be originated on Uniform
      Instruments that provide either for the Mortgage to be assumable during the
      life of the Mortgage or for the Mortgage to be nonassumable during the Initial
      Period and assumable thereafter. Freddie Mac Single-Family Seller/Servicer Guide
      Chapter 4101 As of 02/04/26 Page 4101-17 For eligible Mortgage products that
      are not originated on Uniform Instruments, such as FHA and VA Mortgages, the
      due-on-sale characteristics may be different from those specified above. (d)
      Exceptions for applicable laws and certain circumstances Regardless of the type
      of due-on-sale clause stated in the Uniform Instrument used to originate a Mortgage,
      Freddie Mac will permit a Mortgage, which under its terms is nonassumable, to
      be assumed if required by federal or State law or under the circumstances as
      described in Sections 8406.1(d) and 8406.2(a).'
  judgment: false
