source:
  type: guide
  id: fhlmc-4201.12
  authority: Freddie Mac Single-Family Seller/Servicer Guide Section 4201.12 — Second
    home Mortgages
  description: Freddie Mac Single-Family Seller/Servicer Guide Section 4201.12 — Second
    home Mortgages.
  coverage_tier: operative
obligations:
- id: fhlmc-4201.12-full
  canonical_id: fhlmc-4201.12-full
  section: Freddie Mac Single-Family Seller/Servicer Guide Section 4201.12 — Second
    home 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 4201.12 — Second
      home 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: '4201.12: Second home Mortgages (03/04/26) Mortgages secured
      by second homes 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 Freddie
      Mac Single-Family Seller/Servicer Guide Chapter 4201 As of 03/04/26 Page 4201-9
      ■ Credit Fees (a) Eligibility requirements The following eligibility requirements
      apply to second home Mortgages: ■ The Mortgage must be an Accept Mortgage ■
      The Mortgage must be secured by a 1-unit property ■ The Borrower must occupy
      the second home for some portion of the year ■ The Borrower must keep the property
      available primarily (i.e., more than half of the calendar year) for the Borrower’s
      personal use and enjoyment ■ The Borrower may rent the property on a short-term
      basis provided that the property is not subject to any rental pools or agreements
      that require the Borrower to rent the property, give a management company or
      entity control over the occupancy of the property or involve revenue sharing
      between any owners and the developer or another party ■ The Mortgaged Premises
      must be in such a location to function reasonably as a second home ■ The second
      home must be suitable for year-round occupancy. Exception: A second home with
      seasonal limitations on year-round occupancy (e.g., lack of winter accessibility)
      is eligible if the appraiser includes at least one comparable sale with similar
      seasonal limitations to demonstrate the marketability of the subject property.
      See Section 5601.1 for property eligibility requirements. ■ The property must
      not be subject to any timesharing or other shared ownership arrangement Freddie
      Mac’s determination of whether a property is a second home is conclusive. A
      2-unit property used as a second home is considered an Investment Property and
      must meet all of the requirements of Section 4201.13. (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 Freddie Mac Single-Family
      Seller/Servicer Guide Chapter 4201 As of 03/04/26 Page 4201-10 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 (ii) Asset eligibility and reserve requirements for
      second home Mortgages 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, or other Borrower
      funds, as described in Section 5501.4, except for the following: ■ Pooled funds
      ■ Gift funds received as a wedding and/or graduation gift ■ Gifts or grants
      from an Agency ■ Employer Assisted Homeownership (EAH) Benefits The reserves
      requirements in Section 5501.2 must be met. (iii) Rental income from a second
      home Rental income generated from the Borrower’s second home may not be used
      as stable monthly income. (iv) Borrower’s monthly housing expense-to-income
      ratio Freddie Mac Single-Family Seller/Servicer Guide Chapter 4201 As of 03/04/26
      Page 4201-11 The monthly housing expense related to a Borrower’s current Primary
      Residence must be used in calculating the Borrower’s monthly housing expense-to-income
      ratio. (v) Monthly payment amount on the second home The monthly payment amount
      (as described in Section 5401.2(b)(8)) on the second home must be considered
      in calculating the Borrower’s monthly debt payment-to-income ratio. (vi) Newly
      constructed homes For purchases of newly constructed homes, the Borrower may
      not be affiliated with or related to the builder, developer or the 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 3890, Multistate Second Home
      Rider, is required for all Mortgages secured by second homes. (d) Credit Fees
      The Seller must refer to Exhibit 19, Credit Fees, for Credit Fees related to
      second home Mortgages. Credit Fees are paid in accordance with the Credit Fee
      provisions stated in Chapter 6303.'
  judgment: false
