Fannie Mae Mortgage Guidelines

Fannie Mae Guidelines: Application Package Requirements

This guideline explains what documents must be included in a mortgage application package, centered on the Uniform Residential Loan Application (Form 1003), and how these documents must accurately reflect the loan terms actually approved during underwriting.

Fannie Mae Guidelines: Blanket Authorization Form

The Blanket Authorization form is a required document that gives your lender permission to verify your employment, assets, bank accounts, credit history, and rental payment history directly with employers, banks, and other institutions.

Fannie Mae Guidelines: Document Age Requirements for Mortgages

This guideline establishes that credit documents must be no more than four months old at closing, while tax returns follow specific timing rules based on IRS filing deadlines and application dates.

Fannie Mae Guidelines: Occupancy Types and Property Classifications

This guideline explains how Fannie Mae classifies properties as principal residences, second homes, or investment properties, and how occupancy type affects interest rates, down payment requirements, and underwriting standards.

Fannie Mae Guidelines: Loan-to-Value Ratios

LTV ratios determine how much you can borrow based on your credit score, property type, and occupancy status. Fannie Mae calculates LTV by dividing your loan amount by the lower of the purchase price or appraised value, with specific rounding rules and maximum limits that vary by borrower profile.

Fannie Mae Guidelines: Combined Loan-to-Value Ratios

CLTV combines all loans secured by your property to determine eligibility and pricing. It includes your first mortgage, second mortgages, HELOCs, and other liens, calculated against the lower of sales price or appraised value.

Fannie Mae Guidelines: Home Equity Combined Loan-to-Value Ratios

HCLTV ratios measure your total potential debt (first mortgage plus full credit limits of HELOCs and subordinate financing) against property value. Lenders must use the full HELOC credit limit regardless of current balance drawn.

Fannie Mae Guidelines: Subordinate Financing Rules

Fannie Mae allows subordinate financing like second mortgages and HELOCs but requires proper documentation, prohibits negative amortization and short-term balloons, and treats below-market seller financing as a sales concession.

Fannie Mae Guidelines: Purchase Transaction Requirements

This guideline covers the requirements for purchase transactions, including minimum borrower contributions, cash-back limitations, first-time homebuyer rules for high-LTV loans, and special restrictions for non-arm's length transactions.

Fannie Mae Guidelines: Limited Cash-Out Refinance Rules

Limited cash-out refinances allow borrowers to replace their mortgage while taking minimal cash out—up to the greater of 1% of loan amount or $2,000—and paying off subordinate liens used in the original purchase. At least one borrower must own the property, and high-LTV loans above 95% require Fannie Mae ownership of the existing mortgage.

Fannie Mae Guidelines: Cash-Out Refinance Requirements

Cash-out refinances allow borrowers to replace their mortgage with a larger loan and receive the difference in cash. Fannie Mae requires minimum ownership and mortgage seasoning periods, imposes higher pricing adjustments, and offers special programs for student loan payoffs.

Fannie Mae Guidelines: Prohibited Refinancing Practices

This guideline prohibits lenders from targeting existing Fannie Mae borrowers for refinances, prearranging special terms, manipulating payment histories, and using conditional payment arrangements. These restrictions prevent predatory practices and protect the integrity of mortgage-backed securities.

Fannie Mae Guidelines: Installment Land Contract Payoff Requirements

This guideline explains how Fannie Mae treats loans used to pay off installment land contracts, with treatment depending on whether the contract was executed within or beyond 12 months of the loan application date. Contracts within 12 months receive purchase loan treatment, while older contracts are treated as limited cash-out refinances with different loan-to-value calculations.

Fannie Mae Guidelines: Fixed-Rate Loan Requirements

Fixed-rate loans must have level monthly payments, be fully amortizing with no balloon payment, and are non-assumable. Temporary interest rate buydowns are permitted for primary residences and second homes only.

Fannie Mae Guidelines: Adjustable-Rate Mortgage Requirements

This guideline establishes eligibility requirements for ARMs, including SOFR index requirements, margin limits, qualifying rate calculations, and mandatory rate caps to protect borrowers from payment shock.

Fannie Mae Guidelines: Convertible ARM Loans

Convertible ARMs allow borrowers to convert adjustable-rate mortgages to fixed-rate loans after 12 months through a modification agreement, with caps on rate and payment increases and flexible qualification options.

Fannie Mae Guidelines: Temporary Interest Rate Buydowns

Temporary buydowns reduce your mortgage interest rate for up to 3 years with annual increases capped at 1%, but you must qualify at the full note rate. Buydowns are available for primary residences and second homes with funds from sellers, lenders, or family members, and the account must be fully funded before closing.

Fannie Mae Guidelines: Conforming Loan Limits

Conforming loan limits set the maximum loan amount Fannie Mae can purchase, varying by location and property type. These limits determine whether a loan qualifies as conforming or jumbo and are based on the original loan amount at closing, not the current balance.

Fannie Mae Guidelines: Loan Eligibility Requirements

This guideline covers the fundamental eligibility requirements for conventional mortgages sold to Fannie Mae, including loan structure, points and fees limits, interest rate restrictions, and timing requirements.

Fannie Mae Guidelines: Legal Requirements for Mortgage Security

This guideline establishes legal requirements for mortgage structure, including first lien position, title clarity, and restrictions on personal property collateral and loan modifications before sale to Fannie Mae.

Fannie Mae Guidelines: Escrow Account Requirements

This guideline explains what expenses must be escrowed in mortgage accounts, when lenders can waive escrow requirements, and special rules for different property types and loan situations.

Fannie Mae Guidelines: Principal Curtailments

Principal curtailments are extra payments that reduce your mortgage balance before loan delivery to Fannie Mae. They can be lender-initiated for fee refunds or compliance corrections, or borrower-initiated as voluntary principal payments.

Fannie Mae Guidelines: Basic Borrower Eligibility Requirements

This guideline establishes who can qualify for a Fannie Mae mortgage, requiring borrowers to be individuals with valid tax identification, legal age, and proper ownership interest in the property. Certain trusts are permitted under specific conditions.

Fannie Mae Guidelines: Non-U.S. Citizen Borrower Eligibility

Non-U.S. citizens who are lawful permanent or non-permanent residents legally present in the United States qualify for Fannie Mae mortgages on the same terms as U.S. citizens. Lenders have flexibility in verifying legal status and set their own documentation requirements.

Fannie Mae Guidelines: Multiple Financed Properties Limits

This guideline explains how Fannie Mae counts financed properties for borrowers, sets limits based on property type and loan program, and requires increasing reserves as the number of properties grows.

Fannie Mae Guidelines: Guarantors, Co-Signers, and Non-Occupant Borrowers

This guideline explains how borrowers can use income from guarantors, co-signers, or non-occupant borrowers to qualify for a mortgage, including requirements for down payment contributions, debt-to-income limits, and loan-to-value restrictions.

Fannie Mae Guidelines: Inter Vivos Revocable Trusts

Fannie Mae allows inter vivos revocable trusts to hold title to property and serve as mortgagor, provided at least one trust creator qualifies as a borrower and the trust meets specific structural and documentation requirements. The loan is underwritten based on the individual borrower's qualifications, not the trust's.

Fannie Mae Guidelines: Homeownership Education Requirements

Fannie Mae requires homeownership education or HUD-approved housing counseling for certain borrowers before closing, including first-time homebuyers with high loan-to-value ratios and borrowers with no credit history. HomeReady borrowers who complete counseling may qualify for pricing credits.

Fannie Mae Guidelines: General Property Eligibility

This guideline establishes the basic requirements for residential properties eligible for Fannie Mae financing, including location, property type, ownership structure, and year-round habitability standards. It also identifies property types that automatically disqualify from financing.

Fannie Mae Guidelines: Factory-Built Housing Eligibility

This guideline explains eligibility requirements for manufactured homes, modular homes, and other factory-built properties, including HUD certification documentation, size standards, foundation requirements, and special MH Advantage loan benefits.

Fannie Mae Guidelines: Leasehold Property Financing Requirements

This guideline explains when Fannie Mae will finance properties where you own the building but lease the land, including required lease terms, transfer rights, and lender protections.

Fannie Mae Guidelines: Special Property Eligibility

This guideline covers eligibility requirements for non-standard properties including accessory dwelling units, multiple parcels, mixed-use properties, Hawaiian lava zones, and solar panel ownership structures. Each property type has specific documentation and compliance requirements that affect loan approval.

Fannie Mae Guidelines: Disaster-Damaged Properties

Lenders must verify that disaster-damaged properties are safe and structurally sound before loan delivery. Minor insured damage can proceed to closing if repair funds are secured, while major structural damage must be repaired first. Properties in FEMA disaster areas receive extended documentation timelines of 180 days and must be delivered within two years of the FEMA declaration.

Fannie Mae Guidelines: Comprehensive Risk Assessment

Lenders must evaluate all risk factors together—not individually—to determine your likelihood of repaying the mortgage on time. This assessment considers your credit, income, assets, down payment, and property value as interconnected elements of your financial profile.

Fannie Mae Guidelines: Desktop Underwriter (DU) Automated Approval Process

Desktop Underwriter is Fannie Mae's automated underwriting system that evaluates loan applications by analyzing multiple risk factors together rather than individual requirements. Lenders must submit loans to DU before closing and verify all conditions are met, while remaining responsible for documentation and loan quality.

Fannie Mae Guidelines: DU Validation Service for Income and Employment

DU Validation Service is an optional electronic verification system that allows lenders to validate borrower income, employment, and assets through authorized third-party vendors, providing warranty protection when components are successfully validated.

Fannie Mae Guidelines: Risk Factors DU Uses to Evaluate Loans

Desktop Underwriter evaluates 18 risk factors across credit history, loan characteristics, property type, equity, and reserves to build a complete risk profile. Strong factors can offset weaker areas, with recent payment history and down payment amount carrying significant weight in approval decisions.

Fannie Mae Guidelines: DU Documentation Requirements

DU automatically determines which documents you must provide based on your loan's risk factors, with requirements varying by income type, assets, and credit profile. Your lender can always require additional documentation beyond DU's specifications.

Fannie Mae Guidelines: Approve/Eligible Recommendations

An Approve/Eligible recommendation from Desktop Underwriter indicates your loan meets Fannie Mae's automated underwriting standards and qualifies for limited representation and warranty relief. However, you must still provide all required documentation and maintain consistency between your submitted information and final verification.

Fannie Mae Guidelines: Approve/Ineligible Loan Recommendations

An Approve/Ineligible recommendation means your loan meets basic requirements but has combined risk factors outside Fannie Mae's automated approval preferences. Your lender can still approve it through manual underwriting, but you lose standard warranty protection and the loan may need special terms or portfolio retention.

Fannie Mae Guidelines: Understanding Refer with Caution Recommendations

A 'Refer with Caution' recommendation from Desktop Underwriter means your loan does not meet Fannie Mae's automated approval standards and requires manual underwriting review. While this doesn't prevent you from getting a mortgage, it means more documentation and stricter review will be necessary.

Fannie Mae Guidelines: Out of Scope Recommendations

When Desktop Underwriter cannot automatically process a loan due to unusual circumstances, the loan receives an Out of Scope recommendation and requires manual underwriting with stricter documentation standards and longer processing times.

Fannie Mae Guidelines: Erroneous Credit Report Data

This guideline explains how lenders must handle material credit report errors that affect Desktop Underwriter decisions, including required documentation and the option to manually underwrite loans when errors cannot be corrected in time.

Fannie Mae Guidelines: DU Data Accuracy and Tolerance Requirements

This guideline establishes tolerance thresholds for changes between loan application and closing, specifying when loans must be resubmitted to Desktop Underwriter and how lenders must verify data accuracy and address credit report errors.

Fannie Mae Guidelines: DU Underwriting Findings Report

The DU Underwriting Findings report is a detailed roadmap generated by Fannie Mae's Desktop Underwriter system that communicates approval status, documentation requirements, and potential issues to lenders. Red flag messages alert lenders to inconsistencies but don't change approval status, and lenders must still verify all information and meet standard documentation requirements regardless of DU recommendations.

Fannie Mae Guidelines: Income Stability and Verification

This guideline establishes requirements for income stability, documentation, and calculation methods for conventional mortgage qualification, including rules for variable income, nontaxable income grossing-up, and specific documentation needs.

Fannie Mae Guidelines: Employment Documentation Standards

Lenders must verify employment income for all borrowers whose income qualifies them for the loan using recent paystubs, W-2 forms, and employer verification. Documentation must meet specific requirements including 30-day paystub dating and year-to-date earnings.

Fannie Mae Guidelines: Base Pay, Bonus, and Overtime Income

This guideline explains how lenders verify and calculate base salary, hourly pay, bonus, and overtime income for mortgage qualification, including documentation requirements and special rules for military personnel.

Fannie Mae Guidelines: Commission Income Qualification

Commission income requires a minimum 2-year history and is averaged over the documented period to determine qualifying income. Lenders must verify earnings through tax returns, W-2s, pay stubs, and employer verification, with declining trends potentially disqualifying this income source.

Fannie Mae Guidelines: Secondary Employment and Seasonal Income

This guideline explains how lenders evaluate income from second jobs, multiple jobs, and seasonal work, including documentation requirements and employment gap rules that borrowers must meet to qualify.

Fannie Mae Guidelines: IRS Form 4506-C Tax Transcript Authorization

IRS Form 4506-C authorizes lenders to request tax transcripts from the IRS for quality control verification after loan closing. Every borrower whose income qualified the loan must sign this form at or before closing.

Fannie Mae Guidelines: Verbal Verification of Employment

Lenders must verify your employment status within 10 business days before closing by contacting your employer directly. This requirement ensures you remain employed and able to repay the mortgage at the time of loan closing.

Fannie Mae Guidelines: Qualifying Rental Income

This guideline explains how rental income from investment properties, duplexes, and ADUs can be used to qualify for a mortgage, including documentation requirements, calculation methods, and restrictions for first-time landlords.

Fannie Mae Guidelines: Qualifying with Alternative Income Sources

This guideline explains how lenders can count alternative income sources beyond W-2 wages, including requirements for stability, documentation, and specific handling for sources like alimony, Social Security, and employment-related assets.

Fannie Mae Guidelines: Income Calculator Tool

The Income Calculator is an optional digital tool that helps lenders accurately calculate qualifying income for mortgage applications across various income types, with potential enforcement relief benefits when used correctly.

Fannie Mae Guidelines: Self-Employment Income Verification

This guideline explains how lenders verify self-employment income for mortgage qualification, including documentation requirements, income analysis methods, and special exceptions for established businesses.

Fannie Mae Guidelines: Business Structure and Mortgage Qualification

Your business structure determines how income is reported, taxed, and verified for mortgage qualification. Different structures—sole proprietorships, partnerships, LLCs, S corporations, and C corporations—carry different liability risks and create different documentation requirements that affect lending decisions.

Fannie Mae Guidelines: IRS Tax Forms for Income Verification

This guide identifies the 22 IRS tax forms that Fannie Mae uses to verify borrower income across different employment and income types, from W-2 wages to self-employment, partnerships, and investment income.

Fannie Mae Guidelines: Analyzing Self-Employed Income from Tax Returns

This guideline explains how lenders analyze individual tax returns to verify income stability and continuance for mortgage qualification, with emphasis on self-employed borrowers. Lenders must confirm that all income sources are recurring, stable, and likely to continue for at least three years.

Fannie Mae Guidelines: Form 1040 Income Analysis

This guideline explains how lenders analyze income reported on Form 1040 for self-employed borrowers, including which income sources qualify, documentation requirements, and what must be excluded from qualifying income calculations.

Fannie Mae Guidelines: Self-Employment Income from Schedule C

This guideline explains how lenders evaluate self-employment income reported on IRS Form 1040 Schedule C, including required documentation, cash flow adjustments, and qualification rules for sole proprietors and single-member LLCs.

Fannie Mae Guidelines: Capital Gains Income from Schedule D

This guideline explains when capital gains reported on IRS Schedule D can be used as qualifying income for mortgage applications. Most capital gains are treated as one-time transactions and cannot be used, but recurring gains from regular business asset sales may qualify with proper documentation of a two-year history and proof of additional sellable assets.

Fannie Mae Guidelines: Schedule E Income Verification

This guideline explains how lenders verify and calculate income from rental properties, royalties, and other supplemental sources reported on IRS Form 1040 Schedule E, including documentation requirements and common calculation adjustments.

Fannie Mae Guidelines: Farm Income Qualification

This guideline explains how lenders evaluate farming income reported on Schedule F, including verification requirements, add-backs for non-cash expenses, and special considerations for government payments and income volatility.

Fannie Mae Guidelines: Schedule K-1 Income Qualification

This guideline explains how lenders evaluate Schedule K-1 income from partnerships, S corporations, and LLCs for mortgage qualification, including documentation requirements and liquidity verification methods.

Fannie Mae Guidelines: Partnership and LLC Income Analysis

This guideline explains how lenders verify and qualify income from partnership and LLC ownership, including documentation requirements, cash flow analysis for 25%+ owners, and proof of actual distributions.

Fannie Mae Guidelines: S Corporation Income Analysis

This guideline explains how lenders verify and qualify S corporation income for mortgage applicants, including documentation requirements, cash flow analysis, and adjustments based on ownership percentage and business financial health.

Fannie Mae Guidelines: Corporate Income Analysis for Self-Employed Borrowers

This guideline explains how lenders analyze corporate income for mortgage qualification, including documentation requirements, financial health evaluation, ownership share calculations, and cash flow adjustments specific to C-corporations filing Form 1120.

Fannie Mae Guidelines: Profit and Loss Statements for Self-Employed Borrowers

This guideline explains how lenders use profit and loss statements to verify self-employment income stability, when year-to-date P&L statements are required, and how qualifying income is calculated from P&L documentation.

Fannie Mae Guidelines: Income Documentation Requirements for DU

Desktop Underwriter (DU) streamlines income documentation by setting specific requirements based on income type, with base salary needing one year of documentation while variable income and self-employment require two years, plus mandatory verbal employment verification for all loans.

Fannie Mae Guidelines: Rental Income Calculations in Desktop Underwriter

This guideline explains how Desktop Underwriter calculates net rental income from investment properties and multi-unit primary residences, including the 75% gross rent formula, documentation requirements, and how negative rental income affects debt-to-income ratios.

Fannie Mae Guidelines: Minimum Reserve Requirements

Reserve requirements are liquid assets borrowers must retain after closing, measured in months of mortgage payment. Requirements vary by property type and occupancy, ranging from zero months for primary residence purchases to six months for investment properties and high-DTI cash-out refinances.

Fannie Mae Guidelines: Interested Party Contributions

Interested party contributions (IPCs) are funds from sellers, builders, agents, or other parties with financial interest in the sale. They're subject to strict limits and cannot be used for down payments or minimum borrower contributions.

Fannie Mae Guidelines: Lender Incentives and Promotional Offers

Lender incentives are promotional bonuses (cash, gift cards, etc.) that lenders can offer borrowers, but they must come from the lender's own funds, cannot be counted toward loan qualification, and require no repayment. When lenders have financial interests in the property transaction, incentives become sales concessions with different rules.

Fannie Mae Guidelines: Virtual Currency for Down Payments

Virtual currency can be used for down payments, closing costs, and reserves after conversion to U.S. dollars and deposit in a regulated financial institution, with specific documentation requirements and restrictions on earnest money deposits.

Fannie Mae Guidelines: Verification of Deposits and Assets

This guideline explains how lenders verify your bank accounts and assets using bank statements, Form 1006, or third-party services, with specific requirements for documentation based on transaction type and account age.

Fannie Mae Guidelines: Depository Account Verification

This guideline explains how lenders verify funds in checking, savings, money market, and CD accounts for down payments and closing costs, including requirements for documenting large deposits and business accounts.

Fannie Mae Guidelines: Individual Development Accounts for Down Payments

Individual Development Accounts are matched savings programs offered by nonprofits that help borrowers accumulate funds for down payments and closing costs. Lenders must verify program structure, match rates, and repayment terms to determine how matching funds count toward minimum borrower contribution requirements.

Fannie Mae Guidelines: Pooled Savings for Down Payments

Pooled savings and community savings funds can be used for down payments if properly documented with written confirmation from the fund manager and evidence of regular contributions. Ongoing contribution obligations after closing count as debt in your debt-to-income ratio.

Fannie Mae Guidelines: Using Foreign Assets for Your Mortgage

Foreign assets must be converted to U.S. dollars and deposited in U.S. financial institutions before closing, with all foreign documents translated to English and verified by your lender.

Fannie Mae Guidelines: Investment Assets for Down Payment and Reserves

This guideline explains how stocks, bonds, mutual funds, and stock options can be used as assets for down payments, closing costs, and reserves, including verification requirements and the 20% buffer rule that may eliminate the need to prove liquidation.

Fannie Mae Guidelines: Trust Account Funds for Down Payments and Closing Costs

This guideline explains how lenders verify and use trust account funds for down payments, closing costs, and reserves, including documentation requirements and how trust income affects qualifying ratios.

Fannie Mae Guidelines: Using Retirement Accounts for Home Purchase

This guideline explains how borrowers can use vested retirement account funds for down payments, closing costs, and reserves, including verification requirements and common restrictions lenders must check.

Fannie Mae Guidelines: Personal Gift Funds for Down Payments

This guideline explains how borrowers can use gift funds from relatives or familial relationships to cover down payments and closing costs, including documentation requirements and restrictions based on property type and loan-to-value ratio.

Fannie Mae Guidelines: Gifts of Equity for Home Purchases

A gift of equity allows a seller to reduce the sale price and credit the difference toward your down payment and closing costs. This arrangement is only available for primary residences and second homes when the seller qualifies as an acceptable donor under Fannie Mae's gift rules.

Fannie Mae Guidelines: Grants and Lender Contributions

This guideline explains which grants and lender contributions can help pay for down payments and closing costs, including eligibility requirements, documentation needs, and contribution limits based on loan-to-value ratio and property type.

Fannie Mae Guidelines: Disaster Relief Grants or Loans

Disaster relief funds from federally declared disasters can satisfy Fannie Mae's minimum borrower contribution requirement, allowing borrowers to fund 100% of down payment and closing costs without personal savings. Proper documentation from the relief source is required.

Fannie Mae Guidelines: Employer Assistance for Down Payments and Closing Costs

Employer assistance programs can help borrowers fund down payments, closing costs, and reserves for primary residence purchases through grants, loans, or forgivable loans. Borrower contribution requirements vary by loan-to-value ratio and property type, with no contribution needed for loans at 80% LTV or below.

Fannie Mae Guidelines: Earnest Money Deposit Requirements

Earnest money deposits can count toward your down payment and closing costs, but lenders must verify the source of funds and obtain proof of receipt through bank statements and canceled checks or written statements from the deposit holder.

Fannie Mae Guidelines: Using Home Sale Proceeds for Down Payment

This guideline explains how lenders can count anticipated proceeds from selling your current home toward your down payment and closing costs on a new purchase, including calculation methods and required documentation.

Fannie Mae Guidelines: Using Trade Equity for Down Payments

Trade equity allows borrowers to use the value of an owned property toward down payment and closing costs on a new home purchase, provided both transactions close simultaneously and the traded property is independently appraised.

Fannie Mae Guidelines: Rent Credits Toward Down Payment

This guideline explains how rent credits from lease-purchase agreements can count toward your down payment, how lenders calculate the credit amount based on market rent, and what documentation is required to claim rent credits.

Fannie Mae Guidelines: Sweat Equity and Down Payment Requirements

Sweat equity is generally prohibited as a source of funds for down payments and closing costs in conventional mortgages, with a limited exception for HomeReady borrowers who meet specific documentation and program requirements.

Fannie Mae Guidelines: Bridge Loans for Home Purchases

Bridge loans provide short-term financing secured by your current home to help you purchase a new property before selling your existing one. Fannie Mae requires lenders to verify you can afford payments on both homes simultaneously, and the bridge loan cannot be secured by your new property.

Fannie Mae Guidelines: Using Borrowed Funds Secured by Assets

This guideline explains how borrowers can use loans secured by personal assets (stocks, savings, vehicles, real estate) for down payments and closing costs, including how these loans affect debt ratios and what documentation is required.

Fannie Mae Guidelines: Credit Card Financing and Reward Points

This guideline explains when borrowers can charge mortgage fees to credit cards, how credit card debt affects debt-to-income ratios, and the rules for using credit card reward points toward closing costs and down payments.

Fannie Mae Guidelines: Personal Unsecured Loans

Personal unsecured loans cannot be used for down payments, closing costs, or reserves under Fannie Mae guidelines. Lenders must verify that all cash to close comes from acceptable sources like savings, gifts, or asset sales.

Fannie Mae Guidelines: Using Personal Asset Sales for Down Payments

Borrowers can use proceeds from selling personal assets like vehicles, jewelry, or collectibles toward down payments and closing costs, provided the buyer is unconnected to the transaction and proper documentation is provided. Sales exceeding 50% of monthly qualifying income require independent appraisals.

Fannie Mae Guidelines: Using Life Insurance Cash Value for Home Purchase

This guideline explains how borrowers can use cash value from life insurance policies as a source of funds for down payments, closing costs, or reserves, and how these funds and any associated loan payments affect debt-to-income calculations.

Fannie Mae Guidelines: Anticipated Savings and Cash-on-Hand Requirements

This guideline explains how lenders can preliminarily qualify borrowers based on anticipated savings between application and closing, while requiring actual fund accumulation before loan closing. It also prohibits cash-on-hand for conventional loans except under HomeReady programs.

Fannie Mae Guidelines: Using Your Real Estate Commission for Down Payment

Licensed real estate agents can use their earned commission from the home purchase transaction as funds for down payment and closing costs, provided the commission is properly documented and credited toward the loan at closing.

Fannie Mae Guidelines: DU Asset Verification Requirements

This guideline explains how Desktop Underwriter analyzes and verifies liquid assets in mortgage applications, determining which assets require documentation based on funds needed for closing and reserves.

Fannie Mae Guidelines: Asset Documentation Requirements in DU

This guideline specifies what asset documentation Desktop Underwriter requires for mortgage transactions, including bank statement timing, special handling for bridge loans and gifts, and procedures for verifying various asset types.

Fannie Mae Guidelines: Credit Score Requirements and Qualification Rules

This guideline establishes the specific FICO credit score versions Fannie Mae accepts, minimum score requirements for different underwriting methods, and how lenders determine your representative credit score for loan qualification and pricing.

Fannie Mae Guidelines: Credit Score Calculation for Mortgage Loans

This guideline explains how lenders determine the representative credit score used for loan eligibility and pricing, including the middle-score selection method and special rules for co-borrowers and manual underwriting.

Fannie Mae Guidelines: Credit Report Requirements

Lenders must obtain tri-merge credit reports from all three bureaus showing 7 years of history with detailed payment patterns and verified account information within 90 days for all borrowers.

Fannie Mae Guidelines: Types of Credit Reports

Lenders must pull credit reports from multiple repositories to obtain comprehensive credit information. Fannie Mae recognizes three types of credit reports—in-file, automated merged, and residential mortgage reports—each serving different purposes in underwriting.

Fannie Mae Guidelines: Credit Report Accuracy Verification

Lenders must verify that all credit information in your credit report is accurate before loan approval. If you dispute accounts, lenders must investigate with credit bureaus, and manually underwritten loans with disputed tradelines require manual credit evaluation instead of credit scores.

Fannie Mae Guidelines: Credit Account Age and Number

Lenders evaluate the age and number of your credit accounts to assess credit risk, with established accounts generally indicating lower risk than newly opened accounts. Payment performance on accounts matters more than age alone.

Fannie Mae Guidelines: Payment History and Credit Risk Assessment

This guideline explains how lenders evaluate your payment history across all credit accounts to assess creditworthiness, with emphasis on timing, frequency, and severity of late payments, as well as major derogatory events that indicate financial distress.

Fannie Mae Guidelines: Previous Mortgage Payment History Requirements

This guideline establishes requirements for documenting your previous mortgage payment history, including the need for 12 months of recent payment activity and strict rules against mortgage delinquencies of 60+ days in the past 12 months.

Fannie Mae Guidelines: Credit Inquiries and Recent Credit Applications

Lenders must evaluate all credit inquiries on your report to assess credit-seeking behavior and recent attempts to obtain new credit. You must disclose any new credit accounts opened since your mortgage application, and undisclosed debt will be included in your debt-to-income calculations.

Fannie Mae Guidelines: Credit Utilization and Revolving Account Management

Credit utilization measures how much of your available credit limits you're using on revolving accounts. Lenders review utilization patterns during manual underwriting to assess financial risk and predict mortgage payment behavior.

Fannie Mae Guidelines: Authorized User Accounts in Credit Analysis

This guideline explains when lenders can count authorized user credit accounts toward mortgage qualification in manual underwriting, including required documentation and exceptions for spouse-owned accounts.

Fannie Mae Guidelines: Credit Event Waiting Periods

This guideline establishes mandatory waiting periods after significant credit events like bankruptcy, foreclosure, and short sales, with options to reduce periods through extenuating circumstances and requirements to re-establish credit.

Fannie Mae Guidelines: Extenuating Circumstances for Derogatory Credit

This guideline explains how borrowers can qualify for mortgages despite derogatory credit events by documenting nonrecurring, uncontrollable circumstances like job loss, medical emergencies, or divorce that caused sudden financial hardship. Lenders require official documentation and a detailed written explanation connecting the event to credit problems.

Fannie Mae Guidelines: DU Credit Report Analysis

DU performs detailed credit report analysis to identify inconsistencies, derogatory events, and credit issues that affect loan approval. The system has specific rules for mortgage delinquencies, collections, disputed accounts, and bankruptcy/foreclosure waiting periods.

Fannie Mae Guidelines: Nontraditional Credit Eligibility

This guideline explains how borrowers without traditional credit scores can qualify for Fannie Mae loans using documented payment histories from rent, utilities, and other nontraditional sources. Loans are subject to stricter requirements including a 36% maximum debt-to-income ratio, primary residence only, and mandatory manual underwriting.

Fannie Mae Guidelines: Nontraditional Credit References

This guideline explains when borrowers without traditional credit scores need nontraditional credit references, how many are required, what types qualify, and documentation standards for establishing payment history.

Fannie Mae Guidelines: Nontraditional Credit Documentation

This guideline explains how borrowers without traditional credit scores can establish creditworthiness using alternative payment histories, including housing, utilities, insurance, and other nontraditional sources, with strict requirements for documentation and payment performance.

Fannie Mae Guidelines: Liability Requirements and Debt-to-Income Calculations

This guideline explains what debts lenders must count as liabilities when calculating your debt-to-income ratio, what documentation is required to verify debts, and when lenders must recalculate your obligations.

Fannie Mae Guidelines: Debt-to-Income Ratio Requirements

This guideline explains how Fannie Mae calculates debt-to-income ratios, sets maximum DTI limits by loan type (36% for manual underwriting, up to 50% for DU loans), and defines which debts count toward the calculation.

Fannie Mae Guidelines: Monthly Housing Expense Calculation

This guideline defines all components of monthly housing expense for debt-to-income calculations, including principal, interest, taxes, insurance, HOA fees, and subordinate financing, with special rules for property tax estimation and tax abatements.

Fannie Mae Guidelines: Qualifying Payment Requirements

This guideline explains how lenders calculate the qualifying payment used to determine debt-to-income ratios, with different rules for fixed-rate mortgages, ARMs, and interest rate buydowns.

Fannie Mae Guidelines: Monthly Debt Obligations

This guideline explains which debts count toward your debt-to-income ratio, how different debt types are calculated, and what documentation is required to exclude certain obligations from your mortgage qualification.

Fannie Mae Guidelines: Other Real Estate Impact on Qualification

This guideline explains how owning investment properties, second homes, and pending sales affect your debt-to-income ratio and mortgage qualification, including exemptions and documentation requirements.

Fannie Mae Guidelines: Debt Payoff Rules and DTI Impact

This guideline explains which debts must be paid off before closing, how debt payoffs affect your debt-to-income ratio, and special rules for different account types including installment loans, credit cards, and collections.

Fannie Mae Guidelines: Debt Verification in DU Underwriting

This guideline explains how Desktop Underwriter (DU) calculates debt-to-income ratios using application data rather than credit report information, and requires lenders to verify and justify any discrepancies between the two sources.

Fannie Mae Guidelines: Market Value Definition

Market value is the most probable price a property would sell for in a competitive, open market between typically motivated, well-informed buyers and sellers. Appraisers must use professional judgment to adjust for special financing and concessions rather than mechanical formulas.

Fannie Mae Guidelines: Lender Responsibilities in Appraisal Management

This guideline outlines the lender's critical responsibilities in managing the appraisal process, including appraiser selection, independence maintenance, property ownership verification, fraud prevention, and ensuring compliance with anti-discrimination standards.

Fannie Mae Guidelines: Appraiser Selection and Qualifications

This guideline establishes requirements for lender selection of qualified, licensed appraisers with local market knowledge to ensure accurate property valuations for mortgage loans. Lenders must maintain oversight of appraiser qualifications and cannot use appraisals ordered by borrowers or other interested parties.

Fannie Mae Guidelines: Unacceptable Appraisal Practices

This guideline prohibits appraisers from using bias, subjective language, or flawed methodology when valuing properties. Appraisers must select comparable sales based on objective market data, make adjustments reflecting actual buyer behavior, and personally verify property information.

Fannie Mae Guidelines: Appraiser Disclosure Requirements

Lenders must provide appraisers with complete transaction information, including the signed sales contract, all financial concessions, and any known property defects or environmental hazards, to ensure accurate property valuations.

Fannie Mae Guidelines: Appraisal Data Standards and Electronic Submission

All Fannie Mae conventional loans require appraisals to use standardized Uniform Appraisal Dataset (UAD) formats and must be submitted electronically through the Uniform Collateral Data Portal (UCDP) before loan delivery. The UCDP system validates appraisal data and must show "Successful" status before the loan can be sold to Fannie Mae.

Fannie Mae Guidelines: Appraisal Report Forms and Required Exhibits

This guideline specifies which appraisal forms appraisers must use for different property types and what supporting exhibits and certifications are required in every appraisal report. Appraisers cannot modify standard certifications, and investment properties using rental income require additional documentation.

Fannie Mae Guidelines: Desktop Appraisals for Home Purchases

Desktop appraisals allow lenders to value single-family primary residences without a physical inspection when Desktop Underwriter recommends them. The appraiser uses public records, MLS data, and other sources instead of visiting the property, but eligibility is limited to purchase transactions with 90% LTV or less.

Fannie Mae Guidelines: Hybrid Appraisals

Hybrid appraisals combine third-party property data collection with appraiser analysis to determine home value, available only when Desktop Underwriter offers them for eligible loan types. They streamline the appraisal process but require specific forms, ANSI floor plans, and API submission before appraiser completion.

Fannie Mae Guidelines: Appraisal Age and Timing Requirements

This guideline establishes the maximum age requirements for appraisals at loan closing, including when appraisal updates or new appraisals are required based on the appraisal type and age.

Fannie Mae Guidelines: Verifying Home Completion and Postponed Improvements

This guideline establishes requirements for verifying that construction and improvements are complete before loan purchase, and outlines when postponed improvements are permitted for new construction with escrow funding.

Fannie Mae Guidelines: Appraisal Report Review Requirements

Lenders must conduct a comprehensive review of appraisal reports to verify property eligibility, validate the appraised value against market comparables and purchase terms, and ensure compliance with USPAP standards and Fannie Mae requirements.

Fannie Mae Guidelines: Property Identification and Contract Analysis in Appraisals

This guideline establishes requirements for how appraisers must identify the subject property and analyze purchase contract terms, including documentation of seller concessions and recent sales history.

Fannie Mae Guidelines: Neighborhood Analysis in Appraisal Reports

This guideline requires appraisers to thoroughly analyze neighborhood boundaries, characteristics, market conditions, and price ranges to determine how location affects property value and loan eligibility. Appraisers must document trends, identify over-improvements, and explain factors that influence marketability.

Fannie Mae Guidelines: Site Analysis in Property Appraisals

The site section of an appraisal examines the land, zoning compliance, utilities, and conditions affecting property value and marketability. Lenders must ensure properties have legal zoning status, proper utility access, and represent the highest and best use of the land.

Fannie Mae Guidelines: Property Improvements in Appraisal Reports

This guideline establishes standards for how appraisers must document and evaluate all property improvements, including their condition, conformity to neighborhood standards, square footage measurements, and special features like energy-efficient systems and accessory dwelling units.

Fannie Mae Guidelines: Property Condition and Construction Quality Standards

This guideline establishes how appraisers rate property condition (C1-C6) and construction quality (Q1-Q6), with C6 and Q6 ratings requiring repairs before loan approval. Properties are evaluated on their own merits for safety, soundness, and structural integrity.

Fannie Mae Guidelines: Sales Comparison Approach in Appraisals

This guideline explains how appraisers use the sales comparison approach to value properties by analyzing closed sales, contract sales, and listings, with strict requirements for data sources, verification, and sales history documentation.

Fannie Mae Guidelines: Comparable Sales in Appraisals

This guideline explains how appraisers select and use comparable sales to determine your home's market value, including requirements for number, location, and types of properties that can be used as comparables.

Fannie Mae Guidelines: Appraisal Adjustments to Comparable Sales

This guideline requires appraisers to make market-based adjustments to comparable sales using specific data analysis, including adjustments for financing concessions and time differences, to ensure accurate home valuations.

Fannie Mae Guidelines: Cost and Income Approaches to Value

This guideline explains when appraisers must use the cost approach (required for manufactured homes) and income approach (required for 2-4 unit properties), how lenders review these analyses for consistency, and documentation requirements to support credible appraisal conclusions.

Fannie Mae Guidelines: Appraisal Valuation Analysis and Reconciliation

This guideline requires appraisers to reconcile multiple valuation approaches into a single final opinion of value that falls within the range of all approaches used, with documented explanation of which approach received the most weight and why.

Fannie Mae Guidelines: Appraisal Quality and Value Verification

This guideline establishes lender requirements for verifying appraisal accuracy and completeness, and explains borrower rights to request a reconsideration of value when they believe an appraisal contains errors or unsupported conclusions.

Fannie Mae Guidelines: Manufactured Home Appraisals

Manufactured home appraisals require specialized appraisers, Form 1004C documentation, and specific comparable sales requirements that differ from site-built home appraisals. New manufactured homes must obtain certification of completion before loan sale to Fannie Mae.

Fannie Mae Guidelines: Factory-Built Housing Appraisal and Financing

This guideline covers the appraisal and financing requirements for modular, prefabricated, panelized, and sectional homes built to IRC or local building codes. It explains how these homes differ from manufactured housing and how appraisers must evaluate their marketability and comparability.

Fannie Mae Guidelines: Condo Appraisal Requirements

Condo appraisals require analysis of both individual units and the entire project, including location within the project, amenities, HOA finances, and overall project health. Project-level factors directly impact unit values and marketability.

Fannie Mae Guidelines: Co-op Appraisal Requirements

Co-op appraisals require appraisers to value only the co-op interest (shares and occupancy rights) while excluding the building's blanket mortgage debt, and to document extensive financial information about the co-op corporation and unit. Lenders must obtain Fannie Mae approval before financing co-op properties.

Fannie Mae Guidelines: Leasehold Property Appraisal Requirements

This guideline explains how appraisers must evaluate leasehold properties where you own the structure but lease the land, including required lease analysis, comparable sales approaches, and special considerations for community land trusts.

Fannie Mae Guidelines: Community Land Trust Appraisal Requirements

Community land trust properties require specialized appraisals using a three-step valuation process that determines leasehold value by removing resale restrictions. Appraisers must use fee simple comparables and market-derived capitalization rates rather than restricted community land trust sales.

Fannie Mae Guidelines: Mixed-Use Property Appraisal Requirements

This guideline explains how appraisers value mixed-use properties that combine residential and commercial space, requiring zoning verification and residential-based valuation rather than business income assessment.

Fannie Mae Guidelines: Environmental Hazards in Appraisals

This guideline explains when Fannie Mae will purchase loans on properties with environmental hazards based on appraiser analysis of comparable sales data, and what documentation and disclosures are required throughout the process.

Fannie Mae Guidelines: Special Assessment Districts and Appraisal Requirements

This guideline explains how special assessment and community facilities districts affect mortgage eligibility, appraisal requirements, and property valuation. Appraisers must identify assessments and district financial health, and loans may be ineligible for Fannie Mae delivery if districts face financial difficulties or lack sufficient market data.

Fannie Mae Guidelines: Value Acceptance and Appraisal Alternatives

Value acceptance allows lenders to skip a new appraisal when Desktop Underwriter finds a recent qualified appraisal in Fannie Mae's database, streamlining the mortgage process for eligible properties and loans. The program has specific eligibility requirements and expires four months after issuance.

Fannie Mae Guidelines: Value Acceptance + Property Data

Value Acceptance + Property Data is an alternative to traditional appraisals for eligible single-family homes under $1 million, where a trained property data collector documents the home's condition instead of a full appraisal. The lender accepts full responsibility for the property's value and condition.

Fannie Mae Guidelines: Project Standards for Condos and Planned Communities

Fannie Mae requires approval of condo, co-op, and PUD projects before loan sale, with review requirements varying by project type, age, and characteristics. Project financial health and legal compliance directly affect mortgage approval and closing timelines.

Fannie Mae Guidelines: Project Review Waivers for Condos and PUDs

Fannie Mae waives project review requirements for detached condos, small condo projects (2-4 units), most PUDs, and certain refinance loans, allowing faster underwriting while maintaining basic property eligibility standards.

Fannie Mae Guidelines: Ineligible Condo and Co-op Projects

Fannie Mae will not purchase loans for units in condo or co-op projects with specific disqualifying characteristics, including hotel operations, excessive commercial space, concentrated ownership, critical repairs, or pending litigation affecting safety or structural integrity.

Fannie Mae Guidelines: Environmental Hazard Assessments for Condos and Co-ops

Environmental hazard assessments are required for condo and co-op projects when lenders identify potential environmental problems during underwriting. These assessments use a two-phase approach—Phase I document review and Phase II physical testing—to determine if environmental conditions can be remediated to acceptable standards.

Fannie Mae Guidelines: Environmental Hazards and Property Eligibility

This guideline establishes which environmental contamination and hazards make properties ineligible for Fannie Mae financing, including specific contamination limits for soil and groundwater, and identifies properties that automatically disqualify loans.

Fannie Mae Guidelines: Environmental Remediation Requirements

Properties with environmental hazards can become mortgage-eligible through a structured 90-day remediation process requiring qualified consultant oversight, developer performance escrows, and verification before loan sale to Fannie Mae.

Fannie Mae Guidelines: Limited Review for Condo Projects

Limited Review is a streamlined condo approval process for attached units in established projects that reduces documentation requirements but enforces strict loan-to-value limits based on property use.

Fannie Mae Guidelines: Condo Project Full Review Process

The Full Review is a mandatory verification process lenders use to ensure condo and co-op projects meet Fannie Mae's financial and operational standards before loans can be sold to Fannie Mae. Key requirements include HOA reserve funding, unit delinquency limits, and owner-occupancy ratios for investment properties.

Fannie Mae Guidelines: New and Newly Converted Condo Project Requirements

This guideline establishes additional eligibility requirements for mortgages on units in new and newly converted condo projects, including substantial completion standards, occupancy rules, legal document protections, and special Florida requirements.

Fannie Mae Guidelines: Florida Condo Project Requirements

Florida condominiums require special approval processes and have lower maximum loan-to-value limits compared to other states due to market volatility and construction risks. New and newly converted projects need Fannie Mae project approval before financing, while established projects are capped at 97% LTV unless a project review waiver applies.

Fannie Mae Guidelines: FHA-Approved Condo Project Eligibility

This guideline explains when conventional loans can be used in FHA-approved condo projects, requiring HUD Review and Approval Process (HRAP) approval rather than Direct Endorsement Lender Review, and establishes documentation and verification requirements for lenders.

Fannie Mae Guidelines: Project Eligibility Review for Condos and PUDs

PERS is Fannie Mae's approval system for condo, co-op, and PUD projects that must be completed before loan closing. The process varies by project type, with established projects using a faster streamlined review and newly converted buildings facing stricter requirements.

Fannie Mae Guidelines: Special Considerations for Non-Conforming Projects

This guideline explains how lenders can request special exceptions for condo or co-op projects that don't meet standard Fannie Mae requirements through the Project Eligibility Review Service (PERS), including the process, documentation needed, and potential outcomes.

Fannie Mae Guidelines: PUD Unit Eligibility Requirements

This guideline defines what qualifies as a planned unit development (PUD) for mortgage purposes, explains the classification system for PUD projects, and outlines documentation and review requirements for PUD loan approval.

Fannie Mae Guidelines: Co-op Project Eligibility

Co-op projects must meet specific eligibility requirements including IRS Section 216 qualification, at least 50% principal residence ownership, and demonstrated financial stability. The entire building's financial health and documentation are critical to loan approval.

Fannie Mae Guidelines: Legal Requirements for Co-op Projects

This guideline establishes legal protections and documentation requirements for co-op share loans, including lender security interests, recognition agreements, and restrictions on co-op governance that could impair borrower or lender rights.

Fannie Mae Guidelines: Co-op Share Loan Eligibility

Co-op share loans finance ownership interests in housing cooperatives rather than physical real estate, with unique LTV calculations, occupancy restrictions, and documentation requirements that vary by state.

Fannie Mae Guidelines: High-Balance Mortgage Eligibility

High-balance loans exceed standard conforming limits but stay within county high-cost area limits, requiring automated underwriting, larger down payments, and stricter qualification standards than conventional conforming loans.

Fannie Mae Guidelines: High-Balance Loan Pricing and Insurance

High-balance loans exceed conforming limits and require additional pricing adjustments, mandatory mortgage insurance below 80% LTV, and special reporting codes. Financed insurance premiums cannot push total LTV above 95%.

Fannie Mae Guidelines: Manufactured Housing Eligibility

This guideline defines what qualifies as manufactured housing for Fannie Mae financing, requiring HUD certification, real property classification, and permanent foundations. It outlines documentation requirements and common disqualifying issues.

Fannie Mae Guidelines: Manufactured Housing Loan Eligibility

This guideline establishes eligibility requirements for manufactured housing loans, including real property classification, loan type restrictions, land ownership rules, and property use limitations. Fannie Mae only purchases first-lien mortgages on manufactured homes where both the home and land are classified as real property under state law.

Fannie Mae Guidelines: Manufactured Housing Underwriting Requirements

This guideline covers the stricter underwriting requirements for manufactured home loans, including down payment rules, land equity calculations, trade equity provisions, and refinancing restrictions that differ from conventional site-built home financing.

Fannie Mae Guidelines: Manufactured Housing Pricing and Loan Delivery

This guideline covers loan-level price adjustments for manufactured homes, mortgage insurance requirements, and the specific delivery codes lenders must use when submitting manufactured home loans to Fannie Mae. MH Advantage homes qualify for better pricing if they meet enhanced construction standards.

Fannie Mae Guidelines: Manufactured Housing Legal Requirements

This guideline explains the legal requirements for converting manufactured homes from personal property to real property, including foundation attachment, title handling, documentation, and title insurance requirements necessary for conventional financing.

Fannie Mae Guidelines: Construction-to-Permanent Financing

Construction-to-permanent financing converts short-term construction loans into permanent mortgages once a home is completed. Fannie Mae requires full construction completion, lot ownership before construction begins, and standard mortgage documentation without construction references.

Fannie Mae Guidelines: Single-Closing Construction-to-Permanent Loans

Single-closing construction-to-permanent loans combine construction financing and permanent mortgage into one transaction with a single closing. The construction phase cannot exceed 18 months total, and Fannie Mae can only purchase the loan after construction completes and it converts to permanent financing.

Fannie Mae Guidelines: Two-Closing Construction-to-Permanent Loans

This guideline explains how two-closing construction-to-permanent mortgages work, including the separate closings required, loan structure options based on lot ownership duration, and the documentation and loan-to-value requirements for permanent financing.

Fannie Mae Guidelines: HomeStyle Renovation Mortgages

HomeStyle Renovation mortgages allow borrowers to finance home purchase or refinance costs plus renovation expenses in a single loan with no minimum renovation amount. Lenders must ensure all work is completed within 15 months of closing and may face recourse requirements if loans are delivered before completion.

Fannie Mae Guidelines: HomeStyle Renovation Loan Eligibility

HomeStyle Renovation mortgages allow borrowers to finance both property purchase or refinance and renovation costs in a single loan, with specific limits on renovation expenses, property types, and do-it-yourself work restrictions.

Fannie Mae Guidelines: HomeStyle Renovation Collateral Requirements

This guideline covers collateral considerations for HomeStyle Renovation mortgages, including appraisal requirements, contractor qualifications, renovation plans, and procedures for handling changes or unforeseen circumstances during renovation work.

Fannie Mae Guidelines: HomeStyle Renovation Costs and Escrow

This guideline explains how renovation costs are calculated, contingency reserve requirements, and how lenders manage renovation funds through escrow accounts for HomeStyle mortgages.

Fannie Mae Guidelines: HomeStyle Renovation Completion Certification

Lenders must obtain formal completion certification using Form 1004D to verify all renovation work is finished according to original plans, including appraiser inspection, certificate of occupancy, title updates, and insurance coverage adjustments before final fund disbursement.

Fannie Mae Guidelines: HomeStyle Renovation Contracts and Loan Agreements

This guideline covers the three essential documents required for HomeStyle Renovation loans: the renovation contract between borrower and contractor, the renovation loan agreement between borrower and lender, and lien waivers. It details requirements for contract execution, insurance coverage, fund disbursement, completion timelines, and required documentation.

Fannie Mae Guidelines: HomeStyle Refresh Renovation Financing

HomeStyle Refresh allows borrowers to finance up to 15% of a home's completed value for smaller renovations like kitchen updates, energy improvements, and disaster repairs, with funds held in escrow and released as work progresses over a 180-day completion period.

Fannie Mae Guidelines: PACE Loans and Mortgage Eligibility

Property Assessed Clean Energy (PACE) loans can affect mortgage eligibility depending on their lien priority. Fannie Mae will not purchase mortgages on properties where PACE loans have priority over the first mortgage, but subordinate or unsecured PACE loans are acceptable.

Fannie Mae Guidelines: Texas Section 50(a)(6) Cash-Out Refinance Loans

Texas Section 50(a)(6) loans allow homeowners to access equity from their primary residence through cash-out refinancing, but only through authorized lenders following strict constitutional requirements including appraisal documentation and specific payment timing rules.

Fannie Mae Guidelines: Texas Section 50(a)(6) Cash-Out Refinance Rules

Texas Section 50(a)(6) loans are cash-out refinances on primary residences in Texas with specific restrictions on loan products, property types, and lender compliance requirements. Borrowers must understand that Texas law classification differs from Fannie Mae's loan classification system.

Fannie Mae Guidelines: Texas Section 50(a)(6) Home Equity Loans

Texas Section 50(a)(6) loans are subject to strict state constitutional protections including an 80% maximum LTV cap, mandatory requalification on refinances, new appraisals for every transaction, and specialized Texas-specific documentation and title endorsements.

Fannie Mae Guidelines: Texas Section 50(a)(6) Loan Delivery and Servicing

This guideline explains how Texas Section 50(a)(6) refinance loans must be identified and delivered to Fannie Mae using special feature codes, and clarifies that these loans follow standard Fannie Mae servicing requirements with pricing aligned to cash-out refinance classifications.

Fannie Mae Guidelines: Native American Conventional Lending on Tribal Lands

NACLI is Fannie Mae's specialized program for conventional mortgages on tribal lands, requiring lender approval and tribal ordinances that support mortgage lending, foreclosure, and lien priority.

Fannie Mae Guidelines: Disaster-Related Limited Cash-Out Refinance

This program allows homeowners in FEMA-designated disaster areas to refinance subordinate loans used for repairs or receive up to $15,000 cash reimbursement for documented disaster repair expenses on their primary residence.

Fannie Mae Guidelines: HomePath Property Loans

HomePath properties are former Fannie Mae foreclosures that qualify for special lending exceptions, including higher seller concessions up to 6% for high-LTV loans and a $500 appraisal credit that must be passed to borrowers.

Fannie Mae Guidelines: Community Seconds Loans

Community Seconds loans are subordinate second mortgages from affordable housing programs that help with down payments and closing costs. Fannie Mae will purchase the first mortgage when paired with an approved Community Seconds loan, provided the second mortgage is clearly subordinate and meets specific requirements.

Fannie Mae Guidelines: Community Seconds Loan Eligibility

Community Seconds loans are subordinate financing from approved government agencies, nonprofits, or employers that help borrowers with down payments, closing costs, or home improvements while allowing combined loan-to-value ratios up to 105%.

Fannie Mae Guidelines: Shared Appreciation Loans

Shared appreciation loans are second mortgages that provide down payment or closing cost assistance in exchange for a share of future home appreciation. These programs are only available through eligible Community Seconds providers and require specific documentation and first mortgage conditions.

Fannie Mae Guidelines: Loans With Resale Restrictions

This guideline explains Fannie Mae's requirements for purchasing loans on properties with resale restrictions such as income limits, age requirements, or first-time homebuyer restrictions. It covers acceptable restriction types, documentation requirements, foreclosure implications, and how restrictions affect property insurability and future sales.

Fannie Mae Guidelines: Mortgages on Properties with Resale Restrictions

This guideline explains when Fannie Mae will purchase loans on properties with resale restrictions, including eligibility requirements, appraisal approaches based on whether restrictions survive foreclosure, and required delivery codes.

Fannie Mae Guidelines: Shared Equity Programs and Affordability

This guideline explains shared equity programs that help income-qualified buyers purchase homes below market value through community land trusts, income and resale price restrictions, and limited equity co-ops. It covers program structures, documentation requirements, appraisal considerations, and lender responsibilities.

Fannie Mae Guidelines: Shared Equity Transactions

This guideline covers shared equity transactions where a third party shares in property appreciation or provides affordability assistance through community land trusts or income/resale restriction programs. It establishes requirements for ground leases, resale restrictions, private transfer fees, and documentation needed for loan eligibility.

Fannie Mae Guidelines: Shared Equity Transactions

This guideline covers eligibility, underwriting, and collateral requirements for shared equity mortgage transactions where approved organizations provide subsidies to help moderate-income borrowers purchase homes with resale restrictions.

Fannie Mae Guidelines: Massachusetts Resale Restriction Loan Eligibility

This guideline explains Fannie Mae's streamlined approval process for mortgages on Massachusetts properties with affordable housing resale restrictions, including documentation requirements and the extended 120-day foreclosure notification timeline.

Fannie Mae Guidelines: HomeReady Mortgage Eligibility and Income Limits

The HomeReady program is Fannie Mae's community lending product for moderate-income borrowers, featuring flexible underwriting, high loan-to-value ratios up to 97%, and an 80% area median income cap. It applies to primary residence purchases and limited refinances on one- to four-unit properties.

Fannie Mae Guidelines: HomeReady Mortgage Underwriting

HomeReady mortgages offer flexible underwriting paths with up to 97% LTV, unique down payment options including gifts and grants, and allowances for boarder income and rental income from the subject property. This guideline covers underwriting methods, down payment requirements, income documentation, and property ownership limits specific to HomeReady loans.

Fannie Mae Guidelines: HomeReady Pricing, Insurance & Special Codes

HomeReady mortgages include loan-level price adjustments based on credit and down payment, offer housing counseling credits, require mortgage insurance, and must be delivered with specific special feature codes for proper classification.

Fannie Mae Guidelines: High LTV Refinance Eligibility

This guideline covers borrower and loan eligibility requirements for Fannie Mae's High LTV Refinance program, which allows refinancing of loans with LTV ratios above 80%. Note that the program is currently paused for new applications.

Fannie Mae Guidelines: High LTV Refinance Underwriting Requirements

This guideline outlines the streamlined underwriting, documentation, and collateral requirements for high LTV refinance loans, which have minimal credit, income, and employment verification standards compared to traditional refinances.

Fannie Mae Guidelines: High LTV Refinance Alternative Qualification

The Alternative Qualification Path applies to high loan-to-value refinances with payment increases over 20%, borrower removals, or higher-priced loans, requiring manual underwriting, a 620 minimum credit score, and 45% maximum debt-to-income ratio.

Fannie Mae Guidelines: High LTV Refinance Representations and Warranties

High LTV refinance loans operate under reduced lender liability for property condition and certain underwriting representations, with different relief levels for DU-approved versus manually underwritten loans.

Fannie Mae Guidelines: High LTV Refinance Pricing and Mortgage Insurance

This guideline covers loan-level price adjustments, mortgage insurance transfer requirements, and delivery codes for refinance loans with loan-to-value ratios exceeding 80%. It explains how existing mortgage insurance transfers to new loans and when new coverage is not required.

Fannie Mae Guidelines: Government Loan Requirements

This guideline covers the dual requirements that government-backed mortgages (FHA, VA, USDA) must meet—both their respective agency standards and Fannie Mae's overlay requirements when sold to Fannie Mae. It addresses credit scores, loan age limits, documentation, and property lien requirements.

Fannie Mae Guidelines: Eligible FHA-Insured Mortgage Loans

This guideline specifies which FHA loan programs Fannie Mae will purchase, including Section 203(b), 203(h), 203(k), 234, and 251 loans, and outlines the documentation, compliance, and special feature code requirements for delivery.

Fannie Mae Guidelines: Eligible VA-Guaranteed Mortgages

This guideline specifies which VA loans Fannie Mae will purchase, including requirements for Section 3710 guaranty amounts, fixed-rate structures, loan amount limits, and delivery methods. VA loans must have at least 25% guaranty, comply with conforming loan limits, and be delivered through negotiated agreements rather than standard channels.

Fannie Mae Guidelines: HUD Section 184 Mortgages for Native American Borrowers

Section 184 mortgages are HUD-guaranteed loans for Native American borrowers and tribal communities that Fannie Mae will purchase only with HUD's guarantee in place. These loans have specific property requirements, prohibit interest rate buydowns, and must be reported with special feature code 202.

Fannie Mae Guidelines: USDA RD-Guaranteed Mortgages

This guideline covers Fannie Mae's purchase of USDA Rural Development Section 502 guaranteed mortgages, including standard RD loans, interest rate buydowns, higher balance limits, and leveraged blended loan programs combining conventional and RD financing.

Fannie Mae Guidelines: Mortgage Insurance Requirements

This guideline explains when private mortgage insurance is required for conventional loans, which insurers and policy forms Fannie Mae approves, and how borrowers can pay premiums. It covers special rules for New York properties and documentation requirements lenders must maintain.

Fannie Mae Guidelines: Mortgage Insurance Coverage Requirements

This guideline explains how mortgage insurance coverage percentages are determined based on loan-to-value ratio, loan type, and property type, and how borrowers can choose between standard and minimum coverage options with different cost trade-offs.

Fannie Mae Guidelines: Lender-Purchased Mortgage Insurance

Lender-purchased mortgage insurance (LPMI) allows lenders to pay for mortgage insurance coverage instead of borrowers, typically by building the cost into the loan's interest rate. Lenders assume all premium obligations and must follow specific delivery, servicing, and disclosure requirements.

Fannie Mae Guidelines: Financed Mortgage Insurance Premiums

Financed mortgage insurance allows borrowers to add their mortgage insurance premium to the loan amount instead of paying it upfront at closing. Lenders must calculate two LTV ratios and follow specific documentation requirements for eligible loan types.

Fannie Mae Guidelines: Government Mortgage Loan Guaranty or Insurance

This guideline establishes requirements for lenders to obtain and deliver official government insurance or guaranty certificates (FHA, VA, USDA, HUD Section 184) before selling loans to Fannie Mae, with specific procedures for delayed certificates and government authority lapses.

Fannie Mae Guidelines: Title Insurance Requirements

Every Fannie Mae loan requires title insurance or an attorney title opinion letter to protect against past title defects and ensure the lender can sell the mortgage. The title insurance must be issued by an acceptable insurer and include required endorsements.

Fannie Mae Guidelines: Title Insurer Requirements

Lenders must use title insurance companies that are state-licensed and meet financial strength standards. Title insurers using reinsurance must have both the primary and reinsuring company licensed in the borrower's state with proper endorsements attached to the policy.

Fannie Mae Guidelines: Title Insurance Coverage Requirements

Title insurance protects your lender's mortgage by ensuring valid ownership and first lien priority. Fannie Mae requires specific ALTA policy forms, minimum coverage amounts, environmental protection endorsements, and proper MERS registration language.

Fannie Mae Guidelines: Special Title Insurance Coverage

This guideline explains required title insurance endorsements and special coverage considerations for condos, PUDs, leasehold properties, construction loans, and other unique property types to protect against ownership and lien risks.

Fannie Mae Guidelines: Title Exceptions and Impediments

This guideline defines which title issues are acceptable for Fannie Mae loans and which are deal-breakers, including requirements for surveys, easements, encroachments, and redemption rights. Lenders must indemnify Fannie Mae for losses from approved title impediments.

Fannie Mae Guidelines: Attorney Title Opinion Letter Requirements

Attorney title opinion letters can replace title insurance in certain markets if they meet specific Fannie Mae requirements, including proper indemnification language, gap coverage, and attorney qualifications with malpractice insurance.

Fannie Mae Guidelines: Property Insurance Company Rating Requirements

Fannie Mae requires property insurance from financially stable companies with minimum ratings from approved agencies (AM Best B+, Demotech A, Kroll BBB, or S&P BBB). State insurance plans are acceptable only when private coverage is unavailable.

Fannie Mae Guidelines: Property Insurance Requirements

This guideline specifies mandatory homeowners insurance requirements for one-to four-unit properties, including required perils coverage, replacement cost basis, coverage amounts, deductible limits, and lender documentation needs.

Fannie Mae Guidelines: Master Property Insurance for Condos and PUDs

Master property insurance requirements for condominiums, co-ops, and PUD developments, including coverage amounts, deductibles, and special endorsements needed for loan approval.

Fannie Mae Guidelines: Individual Property Insurance for Condo and Co-op Units

This guideline explains when condo and co-op unit owners need individual property insurance to supplement master policies, how lenders verify adequate coverage amounts, and what standards must be met.

Fannie Mae Guidelines: Additional Insurance Requirements

This guideline covers specialized insurance requirements beyond standard hazard coverage, including mandatory continuous coverage during renovations, rules for optional credit life insurance, and procedures for properties with uncovered perils like environmental hazards.

Fannie Mae Guidelines: Flood Insurance Requirements

Flood insurance is required for properties in Special Flood Hazard Areas (FEMA zones A or V) and must equal the lesser of 100% replacement cost, maximum NFIP coverage, or loan amount. Coverage can be obtained through NFIP or approved private insurers, with special rules for condos and co-ops.

Fannie Mae Guidelines: Property Insurance Documentation Requirements

Lenders must verify valid property insurance meeting Fannie Mae requirements before closing, accepting certificates, full policies, or electronic files. Servicers must verify annually that coverage remains adequate.

Fannie Mae Guidelines: Insurance Mortgagee Clause and Named Insured Requirements

This guideline explains who must be named as mortgagee and named insured on your homeowners insurance policy, what type of mortgagee clause is required, and how insurers must notify lenders before canceling coverage.

Fannie Mae Guidelines: General Liability Insurance for Condo and Co-op Projects

Condo and co-op projects must maintain general liability insurance with minimum $1 million coverage per occurrence, including separation of insureds provisions to protect individual unit owners from claims related to common areas and shared spaces.

Fannie Mae Guidelines: Fidelity/Crime Insurance for Condos and Co-ops

Condo and co-op projects must carry fidelity/crime insurance to protect against theft or fraud by those handling HOA or co-op funds, with coverage amounts based on financial controls and project size.