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 on a negotiated basis. See A2-4-01, Master Agreement Overview, for additional information. 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.
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.
Fannie Mae will purchase or securitize the following regularly amortizing FHA-insured ARMs that are tied to the appropriate Treasury securities index:
1/1 ARM Plan 515, 1/1/5 cap;
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.
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.
The table below provides references to the Announcements that have been issued that are related to this topic.