What Makes a CHOICEHome Different
CHOICEHome is Fannie Mae's program for manufactured homes that look and feel more like traditional site-built houses. These aren't your typical mobile homes. They have architectural features, better foundations, and construction standards that exceed basic HUD requirements for manufactured housing.
The key difference is in the details. A CHOICEHome must sit on a permanent foundation with mortared masonry blocking walls. The home can't sit more than 30 inches off the ground at the front entrance. Multi-wide homes need features like dormers, covered porches of at least 72 square feet, or attached garages. Single-wide homes need both a covered porch and an attached carport or garage.
Your lender will look for a CHOICEHome notice or MH Advantage sticker near the HUD data plate. This certification proves the manufacturer built the home to CHOICEHome specifications. Without this sticker, the property doesn't qualify for CHOICEHome financing, even if it looks identical to one that does.
Loan Types and Restrictions
CHOICEHome financing comes with specific limitations. You can only use it for buying a home or doing a no-cash-out refinance. Cash-out refinances aren't allowed. The property must be your primary residence - no second homes or investment properties.
Most CHOICEHome loans must be fixed-rate mortgages. The exceptions are 5/6-month, 7/6-month, and 10/6-month adjustable-rate mortgages. If you're using Home Possible, HomeOne, or HeritageOne programs, you're limited to fixed-rate loans only.
Say you want to buy a CHOICEHome as a vacation property. That won't work under this program. Or if you want to refinance and take $50,000 cash out for home improvements, you'll need to look at other financing options.
Required Documentation and Appraisal
Your lender will order an appraisal on Form 70B, which is specific to manufactured homes. The appraiser must photograph the CHOICEHome certification sticker, the HUD data plate, and all the special features like dormers, porches, and garages.
For new CHOICEHomes, both the HUD data plate and HUD certification labels must be present and readable. For existing homes, either the data plate or certification labels work, but the appraiser photographs whatever is available.
The appraiser should find at least one comparable CHOICEHome sale if possible. If none exist in your area, they can use site-built homes as comparables. Traditional manufactured homes can be used as comparables, but the appraiser must explain why they're appropriate given the CHOICEHome's upgraded features.
Loan-to-Value Limits and Down Payment Requirements
CHOICEHome financing offers competitive loan-to-value ratios. Most fixed-rate loans allow up to 95% financing, meaning you need at least 5% down. Home Possible, HomeOne, and HeritageOne loans can go up to 97% financing with just 3% down.
If you're using an Affordable Second mortgage with these programs, the combined loan-to-value can reach 105%. This means the first mortgage could be 97% and a second mortgage could cover another 8%, though the total can't exceed 105%.
ARM loans are capped at 95% loan-to-value regardless of the program. This means you'll need at least 5% down if you choose an adjustable-rate mortgage.
For purchase transactions, the loan amount is based on the lower of the purchase price or appraised value. This includes both the home and land if you're buying them together. For refinances, it's based solely on the current appraised value.
Use of Loan Proceeds
Purchase transaction proceeds can cover the CHOICEHome itself, the land if you don't already own it, and setup costs like delivery, foundation work, and utility connections. You can finance well and septic system installation if needed.
The purchase price must be reduced by any manufacturer rebates or credits for removing wheels and axles. Sales concessions follow standard Fannie Mae rules, but you can't finance insurance premiums other than mortgage insurance.
For no-cash-out refinances, proceeds pay off existing mortgages, closing costs, and related fees. You can receive up to $2,000 or 1% of the new loan amount in cash, whichever is greater. If the property has resale restrictions from a housing subsidy program, you can pay any required appreciation sharing from the loan proceeds.
Underwriting and Technology Requirements
All CHOICEHome loans must receive an "Accept" recommendation from Fannie Mae's automated underwriting system. Your lender will input specific data points including that it's a manufactured home, whether it's single-wide or multi-wide, and that it's a CHOICEHome product.
These loans aren't eligible for automated collateral evaluation (ACE) or ACE+ PDR. This means you'll always need a full appraisal - there's no option for a property inspection waiver or reduced appraisal requirements.
Common Issues and Gotchas
The biggest challenge is finding a property that actually qualifies. Many manufactured homes that look like CHOICEHomes don't have the required certification sticker. Without that sticker, the home doesn't qualify regardless of its features.
Foundation requirements can also create problems. The home must sit on a permanent foundation with specific masonry blocking requirements. Homes on pier foundations or other non-permanent systems don't qualify.
For existing homes, missing or illegible HUD data plates can complicate the process. While alternative documentation exists per [[Section 5703.2]], it adds complexity and potential delays to your loan approval.
The elevation requirement of 30 inches maximum from ground to floor can disqualify homes in flood-prone areas where higher elevations are required by local building codes.
References
For the official guidelines, see 5703.12: Mortgages secured by a CHOICEHome® in the Fannie Mae Selling Guide.
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Original Freddie Mac Guideline Text
Bulletin 2025-7
, which announced the policy requirements for Uniform Appraisal Dataset (UAD) 3.6. Sellers may submit to the Uniform Collateral Data Portal
®
appraisal reports that use UAD 3.6 before the mandatory effective November 2, 2026 version of this section.
®
is a type of Manufactured Home with aesthetics, architectural elements and dwelling specifications that exceed the minimum standards required for HUD-coded manufactured homes. These factory-built properties have features comparable to conventional, site-built properties. This section contains:
Purchase of Mortgages secured by CHOICEHomes
Loan purpose and occupancy
Eligible and ineligible Mortgages secured by CHOICEHomes
Appraisal requirements for Mortgages secured by a CHOICEHome
Underwriting requirements for Mortgages secured by a CHOICEHome
Maximum loan-to-value (LTV)/total LTV (TLTV)/Home Equity Line of Credit (HELOC) TLTV (HTLTV) ratios and value calculation for Mortgages secured by a CHOICEHome
Use of proceeds for Mortgages secured by a CHOICEHome
Mortgage insurance for Mortgages secured by a CHOICEHome
(a)
Purchase of Mortgages secured by CHOICEHomes
The Seller must verify that the subject property meets CHOICEHome property eligibility requirements. This includes obtaining an appraisal report and, when required, a final inspection that evidences the presence of the CHOICEHome element requirements and the following:
The Freddie Mac CHOICEHome notice or the Fannie Mae MH Advantage
®
Sticker, labels that certify the Manufactured Home meets certain CHOICEHome or MH Advantage construction elements, located in proximity to the HUD Data Plate
For a new CHOICEHome, both the HUD Data Plate and the HUD Certification Label(s)
For an existing CHOICEHome, the HUD Data Plate or the HUD Certification Label(s). If neither the HUD Data Plate nor the HUD Certification Label(s) are present or legible, Freddie Mac will accept the alternative documentation described in
Section 5703.2
.
The presence of a CHOICEHome notice only certifies a dwelling was manufactured to the CHOICEHome specifications that were in place as of its manufacture date and does not guarantee eligibility as a CHOICEHome.
(b)
Construction elements for CHOICEHomes
CHOICEHomes must meet the Manufactured Home general requirements in
Section 5703.2
and property and occupancy requirements in
Section 5703.3
, except as otherwise indicated by specific CHOICEHome construction elements below.
(i)
Foundation
The permanent foundation must comply with the following requirements:
Meet HUD’s Permanent Foundation Guide for Manufactured Housing
Be engineer designed and certified for the specific dwelling and site; and
Include a perimeter mortared masonry blocking wall set on a poured perimeter footer
(ii)
(A)
Design
The elevation design must follow these requirements:
Be a low-profile/residential set finished floor set
Not exceed 30 inches from the bottom of the first-floor joist to the exterior grade for the front or entry
Site topography or other considerations may affect actual placement and will not disqualify the property from its CHOICEHome classification
(B)
Features
In addition to the elevation design requirements described in
Section 5703.12(b)(ii)(A)
above, for multi-wide properties, the Manufactured Home must include one of the following feature pairings:
Dormer(s) and covered porch (minimum 72 sq. ft.)
Dormer(s) and attached/detached carport/garage with space to accommodate one or two cars. The materials and finishes must be at least equivalent to the primary structure.
Covered porch (minimum 72 sq. ft.) and attached/detached carport/garage with space to accommodate one or two cars. The materials and finishes must be at least equivalent to the primary structure.
In addition to the elevation design requirements described in
Section 5703.12(b)(ii)(A)
above, for
single-wide properties
, the Manufactured Home must include both of the following feature pairings:
Covered porch (minimum 72 sq. ft.), and
Attached carport/garage with space to accommodate one or two cars. The materials and finishes must be at least equivalent to the primary structure.
(c)
Loan purpose and occupancy
A Mortgage secured by a CHOICEHome must be either a purchase transaction Mortgage or "no cash-out" refinance Mortgage secured by a 1-unit Primary Residence.
(d)
Eligible and ineligible Mortgages secured by CHOICEHomes
(i)
Eligible Mortgages
Mortgages secured by a CHOICEHome must be:
5/6-Month, 7/6-Month or 10/6-Month ARMs
®
®
®
Mortgages must be fixed-rate Mortgages.
(ii)
Ineligible Mortgages
Mortgages secured by a CHOICEHome must not be:
(e)
Appraisal requirements for Mortgages secured by a CHOICEHome
Each Mortgage secured by a CHOICEHome requires an appraisal report completed on
Form 70B, Manufactured Home Appraisal Report
. The appraisal report must reflect an opinion of value based on the real property as completed, consisting of the CHOICEHome, all site improvements and the land on which the property is situated.
The appraisal report must include photos of the following:
The CHOICEHome notice or MH Advantage Sticker, as applicable
The HUD Data Plate and HUD Certification Label(s) as follows:
For a new CHOICEHome, both the HUD Data Plate and the HUD Certification Label(s) must be present and legible
For an existing CHOICEHome, the HUD Data Plate or the HUD Certification Label(s) are acceptable. When both are present, the appraiser must include both.
The property and site features, including dormers, porches, garages, carports and any other attached or detached structures
The appraisal report must comply with the sales comparison approach requirements outlined in
Section 5605.6
, and the appraisal report should contain at least one comparable CHOICEHome sale. If none are available, the appraisal report may contain site-built homes as comparable sales.
Traditional HUD-coded Manufactured Homes are not required as comparable sales. However, if used, the appraisal report must include an explanation that supports its use as a comparable sale(s) considering CHOICEHome’s elements and specifications.
(f)
Underwriting requirements for Mortgages secured by a CHOICEHome
A Mortgage secured by a CHOICEHome must be an Accept Mortgage.
The Seller must select the following in Loan Product Advisor
®
:
Data required for Mortgages secured by a CHOICEHome
52.00
55.00
46.00
178.00
CHOICEHome
A Mortgage secured by a CHOICEHome is not eligible for automated collateral evaluation (ACE) or ACE+ PDR. The Seller must not accept an offer from Loan Product Advisor stating ACE or ACE+ PDR is acceptable.
(g)
Maximum LTV/TLTV/HTLTV ratios and value calculation for Mortgages secured by a CHOICEHome
The maximum LTV/TLTV/HTLTV ratios and determination of value for Mortgages secured by a CHOICEHome are as follows:
(i)
Mortgages
except
Home Possible, HomeOne and HeritageOne Mortgages
95/95/95%
97/97/97%
Home Possible Mortgages with an Affordable Second
®
HomeOne Mortgages with an Affordable Second
HeritageOne Mortgages with an Affordable Second
97/105/97%
95/95/95%
*Pursuant to
Section 5703.12(d)(i)
, Home Possible Mortgages, HomeOne Mortgages and HeritageOne Mortgages must be fixed-rate Mortgages.
(ii)
Calculation of value
The value used to determine the LTV/TLTV/HTLTV ratios of Mortgages secured by CHOICEHomes is calculated as follows:
Determining value for LTV/TLTV/HTLTV ratios
The lower of:
The purchase price of the CHOICEHome and purchase price of the land; or
The current appraised value of the CHOICEHome and land
“No cash-out” refinance Mortgages
The current appraised value of the CHOICEHome and land
(h)
Use of proceeds for Mortgages secured by a CHOICEHome
The following table specifies the allowable use of proceeds by transaction type:
Allowable use of proceeds for Mortgages secured by a CHOICEHome
Limited to:
Purchasing the CHOICEHome
Purchasing the land when the Borrower does not separately own the land
Paying documented costs for delivery and setup, anchoring on a permanent foundation system, site development, installation and permanent utility connections, including well and/or septic systems
Credits for wheels and axles and any Manufactured Home retailer rebates must be deducted from the purchase price
Section 5501.6(c)
and other costs, including financing of any forms of insurance except for mortgage insurance, may not be used in the purchase price
“No cash-out” refinance Mortgage
Limited to:
Paying off the principal and interest due, including a balance deferred under a loss mitigation plan, for the existing first Mortgage and, if applicable, junior lien(s) secured by the CHOICEHome and the land
Paying off any costs or fees associated with the satisfaction and release of the first Mortgage (e.g., late fees, prepayment penalties)
Paying related Closing Costs
Disbursing cash to the Borrower (or any other payee) up to the greater of 1% of the new refinance Mortgage or $2,000
Paying any required share of appreciation due to the subsidy provider per the resale restricted covenants
(i)
Mortgage insurance for Mortgages secured by a CHOICEHome
A Mortgage secured by a CHOICEHome originated under this Section 5703.12 with an LTV ratio greater than 95% but less than or equal to 97% is eligible for mortgage insurance under
Section 4701.1
.
The Seller must verify that the mortgage insurance will cover a Mortgage secured by a CHOICEHome with an LTV ratio greater than 95% before submitting such mortgage insurance.
