source:
  type: guide
  id: fhlmc-4404.1
  authority: Freddie Mac Single-Family Seller/Servicer Guide Section 4404.1 — Land
    contract; contract for deed
  description: Freddie Mac Single-Family Seller/Servicer Guide Section 4404.1 — Land
    contract; contract for deed.
  coverage_tier: operative
obligations:
- id: fhlmc-4404.1-full
  canonical_id: fhlmc-4404.1-full
  section: Freddie Mac Single-Family Seller/Servicer Guide Section 4404.1 — Land contract;
    contract for deed
  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 4404.1 — Land
      contract; contract for deed
    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: '4404.1: Land contract; contract for deed (02/05/25) This section
      contains requirements related to: ■ Purchase transaction Mortgages ■ “No cash-out”
      refinance Mortgages When the proceeds of a Mortgage are used to pay the outstanding
      balance under a land contract or contract for deed, the Mortgage may be considered
      either a purchase or a “no cash-out” refinance Mortgage if the requirements
      in this section are met. A copy of the executed land contract or contract for
      deed must be included in the Mortgage file. (a) Purchase transaction Mortgages
      For the transaction to be considered a purchase transaction: ■ The land contract
      or contract for deed must have been executed less than 12 months prior to the
      Application Received Date ■ All of the loan proceeds must be used to pay the
      outstanding balance under the land contract or contract for deed and no loan
      proceeds may be disbursed to the Borrower ■ The loan-to-value (LTV) ratio must
      be calculated using the lesser of the following: ❑ The current appraised value
      of the Mortgaged Premises, or ❑ The total acquisition cost (the purchase price
      indicated in the original land contract or contract for deed, plus any cost
      the Borrower has expended for rehabilitation, renovation, refurbishment or energy
      improvements). The Mortgage file must contain sufficient documentation on which
      to calculate the total acquisition cost. (b) “No cash-out” refinance Mortgages
      For the transaction to be considered a “no cash-out” refinance transaction:
      ■ The land contract or contract for deed must have been executed at least 12
      months prior to the Application Received Date ■ The LTV ratio must be calculated
      using the current appraised value of the Mortgaged Premises Freddie Mac Single-Family
      Seller/Servicer Guide Chapter 4404 As of 02/05/25 Page 4404-2 ■ The Mortgage
      file must include third-party documentation evidencing payments in accordance
      with the land contract or contract for deed for the most recent 12-month period
      ■ The Mortgage must meet the requirements for “no cash-out” refinance Mortgages
      in Section 4301.4 Freddie Mac Single-Family Seller/Servicer Guide Chapter 4405
      As of 11/13/18 Page 4405-1 Chapter 4405: Energy Conservation Improvements'
  judgment: false
