Selling Guide

Published June 3, 2020

The Selling Guide is organized into parts that reflect how lenders generally categorize various aspects of their business relationship with Fannie Mae. To begin browsing, select from any of the sections below. You may also download the entire Selling Guide in PDF format.

View All Selling Policy Updates

Download PDF

Hint: Ask in a form of a question.

For best results, pose your search like a question.

B5-3.2-05, HomeStyle Renovation Mortgages: Completion Certification (02/27/2018)

Introduction

This topic contains information on the HomeStyle Renovation mortgage including:


Completion Certification

Following completion of the renovation work, the lender must obtain a certification of completion stating the renovation was completed in accordance with the submitted plans and specifications. The certification must be documented on the Appraisal Update and/or Completion Report (Form 1004D). The 1004D must confirm all “subject to” items listed on the appraisal were completed. If deviations have been made to the initial plans, the appraiser must note any impact to the value. If the value has been impacted, the lender must follow the policy in Unplanned Changes in Scope or Incomplete Work in B5-3.2-03, HomeStyle Renovation Mortgages: Collateral Considerations .

The lender must also obtain a certificate of occupancy upon completion of renovation if it is required by local authorities for the type of renovation work that was completed.


Title and Insurance Updates

Concurrent with the last disbursement of funds, the lender must obtain a title update through the date the renovation was completed, to ensure the continuance of Fannie Mae’s first lien priority and the absence of any mechanics’ or materialmen’s liens. When the property is located in a state in which contractors’, subcontractors’, or materialmen’s liens have priority over mortgage liens, the lender must obtain all necessary lien releases or take any other action that may be required to ensure title to the property is clear of all liens and encumbrances.

The lender also must retain in the loan file a certification regarding the adequacy of the property insurance following completion of the renovation. The certification must confirm the coverage has been increased, if necessary, to comply with Fannie Mae’s standard property and flood insurance requirements.

Have You Tried Ask Poli?

Poli knows. Just ask.

Ask Poli features exclusive Q&As and
more—plus official Selling & Servicing
Guide
content.

Try Ask Poli

Related Articles

B5-3.2-01, HomeStyle Renovation Mortgages (02/27/2018)

IntroductionThis topic contains information on HomeStyle Renovation mortgages, including: Overview  Allowable Improvements  Lender...

Read more

B5-3.2-02, HomeStyle Renovation Mortgages: Loan and Borrower Eligibility (04/03/2019)

IntroductionThis topic contains information on HomeStyle Renovation mortgages and borrower eligibility requirements, including: Renovation-Related...

Read more

B5-3.2-03, HomeStyle Renovation Mortgages: Collateral Considerations (02/27/2018)

IntroductionThis topic contains information on HomeStyle Renovation mortgage collateral considerations, including: Appraisal Requirements  Energy...

Read more

Have guide questions? Get answers to all of your policy questions, straight from the source.

Get Started
X
Having Issues with Seeing this Page Correctly?

Use Firefox or Chrome   How to do a hard refresh in Internet Explorer
We recommend that you use the latest version of FireFox or Chrome.

Download Firefox
Download Chrome
  A hard refresh will clear the browsers cache for a specific page and force the most recent version of a page.
    Hold the Ctrl key and press the F5 key.
     

Email Us
If you still have Technical Support questions, feel free to emailAsk_Poli@fanniemae.com.