source:
  type: guide
  id: fhlmc-4201.3
  authority: Freddie Mac Single-Family Seller/Servicer Guide Section 4201.3 — Amortization
    and term
  description: Freddie Mac Single-Family Seller/Servicer Guide Section 4201.3 — Amortization
    and term.
  coverage_tier: operative
obligations:
- id: fhlmc-4201.3-full
  canonical_id: fhlmc-4201.3-full
  section: Freddie Mac Single-Family Seller/Servicer Guide Section 4201.3 — Amortization
    and term
  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 4201.3 — Amortization
      and term
    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: '4201.3: Amortization and term (02/04/26) This section contains
      requirements related to: ■ Amortization ■ Term (a) Amortization The Note must
      provide for full amortization by maturity through regular monthly payments.
      Amortization must begin no later than 62 days after final disbursement of the
      Mortgage proceeds. (b) Term The original term of all Mortgages delivered to
      Freddie Mac must not exceed 30 years from the date that is one month before
      the first payment Due Date. For Construction to Permanent Mortgages or Renovation
      Mortgages, the Due Date is the first payment due on the Permanent Financing.
      For each program listed below, the original term of the Mortgage must comply
      with the following requirements: Minimum and maximum term requirements by program
      Program Minimum original term from the date that is one month before the first
      payment Due Date Maximum original term from the date that is one month before
      the first payment Due Date 10-year program Greater than 84 months 10 years Freddie
      Mac Single-Family Seller/Servicer Guide Chapter 4201 As of 03/04/26 Page 4201-3
      Minimum and maximum term requirements by program Program Minimum original term
      from the date that is one month before the first payment Due Date Maximum original
      term from the date that is one month before the first payment Due Date 15-year
      program Greater than 84 months 15 years 20-year program Greater than 15 years
      20 years 30-year program Greater than 15 years 30 years 4201.4: Closed Mortgages
      and Settlement Date requirements (02/04/26) This section contains: ■ Closed
      Mortgage requirements ■ Settlement Date requirements ■ Additional requirements
      for Mortgages with Settlement Dates more than 120 days after the Note Date (a)
      Closed Mortgage requirements The Mortgage must be closed before delivery to
      Freddie Mac. Final disbursement of the Mortgage proceeds constitutes closing
      of the Mortgage. Construction to Permanent and Renovation Mortgages must be
      delivered after the Effective Date of Permanent Financing. The Mortgage must
      be closed in the Seller’s name as lender or validly assigned and endorsed to
      the Seller as a holder-in-due-course. (b) Settlement Date requirements The Settlement
      Date must occur no more than six months after the: ■ Note Date ■ Effective Date
      of Permanent Financing for Construction to Permanent Mortgage and Renovation
      Mortgages. See Chapter 4602 for eligibility requirements. Freddie Mac Single-Family
      Seller/Servicer Guide Chapter 4201 As of 03/04/26 Page 4201-4 ■ Modification
      Date for Seller-Owned Modified Mortgages. See Chapter 4402 for eligibility requirements.
      ■ Conversion date for Seller-Owned Converted Mortgages. See Chapter 4402 for
      eligibility requirements. ■ Date of the New York Consolidation, Extension and
      Modification Agreement (NY CEMA) for a refinance Mortgage secured by property
      in New York State documented using the NY CEMA. See Section 4101.11 for eligibility
      requirements. Exception: For CHOICERenovation® Mortgages with Settlement Dates
      after completion of renovations, the Settlement Date must occur no more than
      450 days after the Note Date. See Section 4607.4(a). (c) Additional requirements
      for Mortgages with Settlement Dates more than 120 days after the Note Date Certain
      Mortgages with Settlement Dates more than 120 days after the Note Date have
      additional requirements stated elsewhere in the Guide as described in the table
      below. Additional requirements for Mortgages with Settlement Dates more than
      120 days after the Note Date Topic Guide location Automated collateral evaluation
      (ACE) Section 5602.3(h) ACE+ PDR Section 5602.4(g) Appraisals Section 5604.3(a)(iii)
      Condominium Unit Mortgages Sections 5701.2(b), 5701.10(j) and 5701.11(d) Cooperative
      Share Loans Section 5705.2(b) 4201.5: Principal amount advanced; no mandatory
      future advances; outstanding balance (04/02/25) The full principal amount of
      the Mortgage must have been disbursed or advanced to the Borrower or according
      to the direction of the Borrower. Under the Security Instrument, the Borrower
      may not have an option to borrow additional funds secured by the Security Instrument.
      The outstanding principal balance of the Mortgage must be as represented by
      the Seller to Freddie Mac and must be fully secured by the Security Instrument.
      Freddie Mac Single-Family Seller/Servicer Guide Chapter 4201 As of 03/04/26
      Page 4201-5'
  judgment: false
