The mortgaged premises must be
- residential in nature as defined by the characteristics of the property and surrounding market area (see B4-1.3-03, Neighborhood Section of the Appraisal Report);
- secured by an interest in real property within the meaning of the Internal Revenue Code as such term is defined in 26 C.F.R. § 1.856-3;
- safe, sound, and structurally secure (see B4-1.3-06, Property Condition and Quality of Construction of the Improvements);
- adequately insured per Fannie Mae guidelines for property and flood insurance (see B7-3, Property and Flood Insurance);
- the highest and best use of the property as improved (or as proposed per plans and specifications), and the use of the property must be legal or legal non-conforming use (see B4-1.3-04, Site Section of the Appraisal Report);
- readily accessible by roads that meet local standards (see B4-1.3-04, Site Section of the Appraisal Report);
- served by utilities that meet community standards (see B4-1.3-04, Site Section of the Appraisal Report); and
- suitable for year-round use.
For additional information, see B2-3-01, General Property Eligibility.