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.
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.
|Occupancy Types||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 borrower income limits for the resale restrictions differ from the income limits for Fannie Mae’s HomeReady mortgage loans and the borrower income limits for the HomeReady mortgage loans are more restrictive, the HomeReady income limits apply.
The table below provides references to the Announcements that have been issued that are related to this topic.