Selling Guide

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.

B5-5.2-02, Loans with Resale Restrictions: Loan and Borrower Eligibility (02/05/2020)

Introduction

This topic contains information on loans with resale restrictions: loan and borrower eligibility, including:


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.

Note: Age-related deed restrictions generally apply to the unit occupant and frequently require only one occupant to be aged 55 and over. In such a case, the borrower could be younger than 55 provided there is a unit occupant aged 55 and over. This occupant can be a non-borrower household member or a renter in the case of investment property.

(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;

  • churches;

  • employers;

  • universities;

  • 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 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 B5-6-02, HomeReady Mortgage Loan and Borrower Eligibility for additional information.

Related Articles

B5-5.2-01, Loans With Resale Restrictions: General Information (07/28/2015)

IntroductionThis topic contains general information on loans with resale restrictions, including: Overview  Background  Compliance with...

Read more

B5-5.2-03, Loans with Resale Restrictions: Underwriting and Collateral Considerations (07/28/2015)

IntroductionThis topic provides information on loans with resale restrictions, including: Underwriting Methods  Calculation of LTV Ratios ...

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.