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B6-1-02, Eligible FHA-Insured Mortgage Loans (08/05/2020)

This topic contains information on eligible FHA-insured loans, including:


Fannie Mae may purchase or securitize single-family loans that are insured by FHA under the following Sections of Title II of the National Housing Act:

  • Section 203(b) Home Mortgages,

  • Section 203(h) Home Mortgages for Disaster Victims,

  • Section 203(k) Rehabilitation First Mortgages,

  • Section 234 Condominium Units (individual mortgages only), and

  • Section 251 Adjustable-Rate Mortgages.

The above-listed FHA loans can only be delivered to Fannie Mae under a variance in the Lender Contract. The loans must comply with all applicable FHA laws and guidelines and the lender must obtain the required FHA mortgage insurance.

Note: Each Section 203(k) mortgage loan delivered to Fannie Mae must be identified with SFC 089.

FHA Higher Balance Mortgage Loans

Lenders may deliver higher balance FHA loans to Fannie Mae for whole loan or MBS execution. Certain FHA higher balance loans must be delivered with SFC 798. Refer to  Special Feature Codes  on Fannie Mae's website for additional information about the use of this SFC.

FHA-Insured Adjustable-Rate Mortgages

Fannie Mae will purchase or securitize the following regularly amortizing FHA-insured ARMs that are tied to the appropriate Treasury securities index:

  • 3/1 ARM Plan 3549, 1/1/5 cap;

  • 5/1 ARM Plan 3550, 1/1/5 cap;

  • 5/1 ARM Plan 3640, 2/2/6 cap;

  • 7/1 ARM Plan 3551, 2/2/6 cap; and

  • 10/1 ARM Plan 3552, 2/2/6 cap.

Other Fannie Mae Policies that Pertain to FHA Loans

Fannie Mae imposes the following additional policies for FHA loans:

  • Fixed-rate FHA-insured loans that are subject to interest rate buydowns are eligible for delivery to Fannie Mae as long as the borrower is qualified at the note rate.

  • FHA-insured loans that were previously included in a Ginnie Mae MBS pool but removed due to delinquency or other reasons are only eligible for sale to Fannie Mae on a negotiated basis.

Recent Related Announcements

The table below provides references to recently issued Announcements that are related to this topic.

Announcements Issue Date
Announcement SEL-2020-04 August 05, 2020
Announcement SEL-2019-03 April 03, 2019