Freddie Mac Expands CHOICEHome Program to Boost Affordable Housing with Factory-Built Options

In a significant move to address the growing need for affordable housing across the United States, Freddie Mac has announced an expansion of its CHOICEHome mortgage program to now include modern single-section factory-built homes. This marks a major policy shift aimed at unlocking greater access to affordable housing solutions, especially for first-time homebuyers and underserved communities.

Previously limited to multi-section (or double-wide) manufactured homes, the CHOICEHome program now extends its conventional financing benefits including the popular 3% down payment option to single-section, or single-wide, modern manufactured homes that meet strict quality and design standards.

“This expansion underscores our commitment to growing the nation’s housing supply through innovation,” said William J. Pulte, Chairman of Freddie Mac. “Modern single-section factory-built homes offer a high-quality alternative at a lower price, and this update helps make those homes more accessible to working families through the conventional mortgage market.”

Why Factory-Built Homes?

Manufactured homes, especially those built under the HUD code established in 1976, have long provided an affordable alternative to traditional site-built homes. They are engineered in a factory, transported to a home site, and permanently affixed to a foundation. With significantly lower costs per square foot (on average, $55 vs. $114), they offer potential homeowners a way to achieve the dream of homeownership at a fraction of the cost.

Yet until now, single-section factory-built homes often considered the most affordable type were excluded from Freddie Mac’s conventional financing options, limiting their potential reach. This update changes that.

What’s New with CHOICEHome?

Here’s what the new CHOICEHome expansion offers:

• Financing for Single-Section Homes: Lenders can now offer conventional loans for modern single-section factory-built homes, the first time this has been available through CHOICEHome.
• 3% Down Payment: Both Freddie Mac Home Possible borrowers and HomeOne first-time homebuyers are eligible for low-down-payment options, putting homeownership within reach for more Americans.
• Comparable Appraisal Treatment: Homes financed under the program are appraised similarly to site-built homes, helping borrowers and sellers gain better clarity on home value.

“Lenders now have the tools to offer more innovative mortgage products to meet rising demand,” said Sonu Mittal, EVP and Head of Single-Family Acquisitions at Freddie Mac. “We are ready to purchase these loans now, and we expect this to open up new pathways for affordable homeownership.”

🌍 Expanding Supply Where It’s Needed Most

As rising mortgage rates and high construction costs continue to challenge homebuilders and buyers alike, factory-built housing represents a scalable and efficient solution. These homes can be installed on private lots, in urban infill locations, or in designated manufactured housing communities.

Freddie Mac reports that over 22 million families in the U.S. already own manufactured homes. Of those, approximately two-thirds live on privately owned land, with the remaining third in dedicated communities.

With more states experiencing housing shortages particularly in suburban and rural markets this move aims to diversify supply and increase the pace of development without sacrificing quality or livability.

Industry Leaders Applaud the Move

The announcement received praise from across the housing and construction industries. Kevin Clayton, CEO of Clayton Homes, one of the largest producers of factory-built housing, emphasized the importance of expanding financing for single-section designs.

“This is a pivotal step forward,” Clayton said. “Freddie Mac’s inclusion of single-section homes in their CHOICEHome program will create more opportunities for families to access energy-efficient, affordable homes in neighborhoods across the country including those with tighter lots and limited inventory.”

The move also aligns with the Trump administration’s renewed focus on affordable housing solutions, particularly through expanding federal partnerships and encouraging private sector innovation.

💬 Final Thoughts

As the housing market continues to face high mortgage rates, limited inventory, and skyrocketing costs, Freddie Mac’s CHOICEHome expansion is a timely and strategic response. By broadening access to modern, energy-efficient single-section homes, this initiative provides a new entry point for families priced out of traditional homeownership.

It’s not just about making homes cheaper it’s about making homeownership possible again for millions of hardworking Americans. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.