Selling Guide

Published December 16, 2020

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What is the allowable age of credit and appraisal documents for single-closing construction-to-permanent transactions?

Age of Credit and Appraisal Documents

Single-closing transactions with credit and appraisal documents dated more than 4 months but not exceeding 18 months old at the time of the conversion to permanent financing are eligible for delivery if all of the following conditions were met at the time of the original closing of the construction loan:

  • The documents were dated within 120 days of the original closing date of the construction loan.
  • The LTV, CLTV, and HCLTV ratios do not exceed 70%.
  • The borrower has a minimum credit score of 700.
  • The loan casefile was underwritten through DU and received an Approve/Eligible recommendation. Manual underwriting is not permitted.

If any one of the above conditions was not met or an eligible loan term was modified subsequent to the last DU submission, the lender must

  • obtain updated credit documents and an appraisal update completed on an Appraisal Update and/or Completion Report (Form 1004D)*, and
  • re-qualify the borrowers before the mortgage loan is delivered to Fannie Mae.

See B1-1-03, Allowable Age of Credit Documents and Federal Income Tax Returns and B4-1.2-02, Appraisal Age and Use Requirements, for additional information.

See also B5-3.1-02, Conversion of Construction-to-Permanent Financing: Single-Closing Transactions.

*For a complete list of forms used in fulfilling requirements contained in the Selling and Servicing Guides, see the Guide Forms page.

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