Introduction
This topic contains information on loans with resale restrictions: loan and borrower eligibility, including:
- Loan Eligibility and Occupancy Types
- Eligible Subsidy Providers for Affordability-Related Deed Restrictions
- Eligible Borrowers for Affordability-Related Deed Restrictions
Loan Eligibility and Occupancy Types
The following table describes the eligible transaction types, products, occupancy types, and properties for loans with resale restrictions.
| Eligibility Based on Type of Deed Restriction | ||
|---|---|---|
| Affordable | Age-Related | |
| Transaction Types | Purchase and Refinance | |
| Products | Loans must be fixed-rate or adjustable-rate mortgages with an initial fixed period of five years or more, and can be any Fannie Mae product described in this Guide. | |
| Borrowers | Must meet applicable criteria of the deed restriction. (It is permissible for both affordable and age-related requirements to apply to a single loan.) | |
| Occupancy Types | Principal residence only | All occupancy types |
| Properties | One- and two-unit properties,
PUDs, condos, and co-ops
Three- and four-unit properties are not eligible. Manufactured homes are not eligible unless they are located in a PERS-approved project. |
|
Eligible Subsidy Providers for Affordability-Related Deed Restrictions
Eligible subsidy providers, or sponsors, of resale restrictions must be
-
nonprofit organizations;
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churches;
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employers;
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universities;
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municipalities (including state, county, or local housing agencies); or
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entities that are otherwise administering government sponsored, federal, state, or local subsidy programs.
The subsidy provider must have established procedures for screening and processing applicants.
Eligible Borrowers for Affordability-Related Deed Restrictions
Eligible borrowers must satisfy the specific eligibility criteria and resale restrictions established by the subsidy provider. If the loan is a HomeReady mortgage, the more restrictive of the HomeReady income limit or the resale restriction income limit applies. See B5-6-01, HomeReady Mortgage Loan and Borrower Eligibility for additional information.