Selling Guide

Published August 29, 2017

B6-1-02: Eligible FHA-Insured Mortgage Loans (07/29/2014)

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

Overview

Fannie Mae will purchase or securitize single-family mortgage 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.

Any lender may deliver the above-listed FHA mortgage loans, provided the mortgages comply with all applicable FHA laws and guidelines and the lender obtains 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 mortgage loans to Fannie Mae for whole loan or MBS execution. Certain FHA higher balance mortgage 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:

  • 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.

Other Fannie Mae Policies that Pertain to FHA Loans

Fannie Mae imposes the following additional policies for FHA loans:

  • Fixed-rate FHA-insured mortgages 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.

Related Announcements

The table below provides references to the Announcements that have been issued that are related to this topic.

Announcements Issue Date
Announcement SEL-2014–10 July 29, 2014
Announcement SEL-2011–05 June 28, 2011
Announcement 09-09 April 3, 2009
Announcement 08-27 October 16, 2008