Freddie Mac CHOICEHome No Longer Requiring Garages or Carports
Freddie Mac has announced that starting March 1, 2020 CHOICEHomes will no longer have to include a garage or carport to be program eligible. This is fantastic news! I have worked with the CHOICEHome program and the requirement for a garage or carport is often a roadblock to moving forward with the new home project. Why?
The CHOICEHome designation was created to serve the affordable housing market. A garage or carport, while great to have, is a luxury that can ultimately drive up the cost of the project by tens of thousands of dollars. This additional cost can be, and often is, the difference between a customer being able to afford a new home or not.
Additionally, I have found that costs for garages and carports almost never comp out dollar for dollar to the comparable value assigned by an appraiser on other properties. As a result, carports and garages can often then create negative equity-type situations that can only be overcome by larger down payments from customers.
It is refreshing to learn that Freddie Mac is listening to the concerns of the manufactured home industry. Now, more customers than ever can make an affordable choice for land/home projects while utilizing site-built comps in the area for valuation.