This topic contains information on loans with resale restrictions: loan and borrower eligibility, including:
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|
|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, or sponsors, of resale restrictions must be
municipalities (including state, county, or local housing agencies); or
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 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 B5-6-02, HomeReady Mortgage Loan and Borrower Eligibility for additional information.