Who Can Get a Fannie Mae Loan
Fannie Mae keeps it simple: you must be a real person, not a business entity. This means individuals qualify, but corporations, LLCs, partnerships, and other business structures don't.
Say you're a real estate investor who owns several properties through an LLC. You can't get a Fannie Mae loan in the LLC's name. You'd need to qualify as an individual and take title personally, even if you later transfer the property to your LLC after closing.
There's no maximum age limit for borrowers. Whether you're 25 or 85, age alone won't disqualify you. However, you must be old enough for the mortgage contract to be legally binding in your state — typically 18 years old.
Trust Exceptions to the Individual Requirement
Fannie Mae makes exceptions for certain types of trusts, but the rules are specific.
Revocable living trusts work when you're both the trustee and beneficiary. These trusts are popular for estate planning because they help avoid probate. If you set up a revocable trust and want to buy a home in the trust's name, Fannie Mae will allow it as long as you maintain control.
Land trusts are permitted in states where they're commonly used, but only when the beneficiary is an individual. Illinois, for example, uses land trusts frequently for privacy reasons.
HomeStyle Renovation mortgages have their own trust rules under B5-3.2-02: HomeStyle Renovation Mortgages: Loan and Borrower Eligibility.
Required Tax Identification Numbers
Every borrower needs either a Social Security number or an Individual Taxpayer Identification Number (ITIN). No exceptions.
If you're a U.S. citizen or permanent resident, you'll use your Social Security number. Non-U.S. citizens who don't qualify for a Social Security number can use an ITIN, which the IRS issues for tax purposes.
Your lender will verify your Social Security number through automated systems. If there's a problem — like the number format is wrong, it belongs to a deceased person, or there's an age mismatch — your lender must resolve it before closing.
When Social Security Number Issues Arise
Desktop Underwriter and Fannie Mae's loan delivery system flag Social Security number problems. Common issues include invalid formats, numbers that were never issued, or numbers associated with someone who's died.
Your lender has two ways to verify your Social Security number directly with the Social Security Administration: Form SSA-89 (a paper authorization form) or the Electronic Consent Based Social Security Number Verification service.
If your lender can't resolve the discrepancy through the SSA, your loan won't be eligible for sale to Fannie Mae. This is a hard stop — there's no workaround.
Establishing Your Ownership Interest
You must have skin in the game. This means signing three key documents: the mortgage (or deed of trust), the promissory note, and taking title to the property.
All borrowers must sign the mortgage and note, even if only one person's income qualifies for the loan. If you're married and buying a home together, both spouses typically sign all documents and take title jointly.
Taking title means the deed shows your name as the new owner. You can't have someone else take title while you remain liable for the mortgage — Fannie Mae requires the borrower and owner to be the same person.
Special Rules for Life Estates
Life estates create unique ownership situations that Fannie Mae handles with specific rules.
In a life estate, one person (the life tenant) has the right to live in and use the property during their lifetime. Other people (remaindermen) will inherit full ownership when the life tenant dies.
The life tenant must be a borrower on the loan since they're the one living in the property. The remaindermen can also be co-borrowers if they want, but they don't have to be. However, both the life tenant and all remaindermen must sign the mortgage to properly secure the loan.
Identity Verification Requirements
Your lender must confirm your identity before extending credit. This isn't just a Fannie Mae rule — it's required by federal law, including the USA PATRIOT Act and Treasury Department regulations.
Expect your lender to check your name against government watch lists and verify your identity documents. This process happens early in the application, not at closing.
The verification requirements align with existing anti-money laundering and know-your-customer rules that lenders already follow. Your lender's compliance department handles this, usually without you knowing it's happening.
Common Complications
Problems often arise when borrowers try to structure ownership for tax or liability reasons. You might want to take title in an LLC for asset protection, but Fannie Mae won't allow it. You'd need to qualify personally and accept personal liability.
Married couples sometimes run into issues when one spouse has credit problems. Both spouses must sign the mortgage in community property states, even if only the spouse with good credit is the borrower on the note.
Foreign nationals face additional hurdles beyond the basic eligibility requirements. Having an ITIN helps, but you'll also need to meet residency and documentation requirements covered in B2-2-02: Non–U.S. Citizen Borrower Eligibility Requirements.
Trust situations get complex quickly. Even with revocable trusts, your lender needs to review the trust documents and may require additional legal documentation to ensure proper execution.
References
For the official guidelines, see B2-2-01: General Borrower Eligibility Requirements in the Fannie Mae Selling Guide.
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Fannie Mae and Freddie Mac update their rules several times a year. Get notified when changes affect your mortgage eligibility, required documents, or loan terms.
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Original Fannie Mae Guideline Text
B2-2-01, General Borrower Eligibility Requirements (09/03/2025)
General Borrower Eligibility Requirements
Tax Identification Numbers
Establishing Borrower Ownership Interest
General Borrower Eligibility Requirements
Fannie Mae purchases or securitizes mortgages made to borrowers who are natural persons and have reached the age at which the mortgage note can be enforced in the jurisdiction where the property is located. There is no maximum age limit for a borrower.
Exceptions to the requirement that borrowers be natural persons are:
inter vivos revocable trusts,
HomeStyle Renovation mortgages, and
land trusts in those states where the beneficiary is an individual. (Note: Fannie Mae permits land trusts on a negotiated basis for states where land trusts are widely accepted.)
See the following for additional information:
B2-1.3-04, Prohibited Refinancing Practices,
B2-2-04, Guarantors, Co-Signers, or Non-Occupant Borrowers on the Subject Transaction
B2-2-05, Inter Vivos Revocable Trusts,
B5-3.2-02, HomeStyle Renovation Mortgages: Loan and Borrower Eligibility, and
Community Land Trusts in
General Borrower Identity Criteria
A borrower is any applicant (e.g., individually or jointly) whose credit is used for qualifying purposes to determine ability to meet Fannie Mae’s underwriting and eligibility standards. “Co-borrower” is a term used to describe any borrower other than the borrower whose name appears first on the note.
Lenders must confirm each borrower’s identity prior to the extension of credit. Fannie Mae’s requirements for borrower identity verification are intended to align with lenders’ existing federal obligations under laws requiring information and document verification, including the Department of Treasury's Office of Foreign Assets Control (OFAC) regulations and the U.S. Patriot Act. See A3-2-01, Compliance With Laws, for additional information concerning borrower identity verification.
Tax Identification Numbers
Fannie Mae requires that each borrower have a valid Social Security number or Individual Taxpayer Identification Number (ITIN), in addition to meeting existing legal residency and documentation requirements. (For additional information, see B2-2-02, Non–U.S. Citizen Borrower Eligibility RequirementsB2-2-02, Non–U.S. Citizen Borrower Eligibility Requirements.)
DU and Loan Delivery may identify data integrity issues pertaining to the borrower’s Social Security number. Lenders must take steps to resolve any issues, including invalid format, numbers not issued, borrower age/issue date discrepancies, or Social Security numbers associated with deceased individuals. If a lender cannot resolve any Social Security number inconsistencies, the lender must validate the Social Security number directly with the Social Security Administration (SSA). The following requirements apply:
The lender may use one of the two methods listed below to validate a borrower's Social Security number:
Form SSA–89 (Authorization for the Social Security Administration to Release Social Security Number Verification), or
Electronic Consent Based Social Security Number Verification (eCBSV) Service.
If using a third-party vendor, the lender must ensure that the vendor goes directly to the SSA to validate the Social Security number using one of the two methods listed above.
The lender must retain documentation in the loan file that evidences the validation of the Social Security number.
The lender must deliver the loan with SFC 162 if the Social Security number was validated through the SSA but there is a discrepancy identified with the Social Security number in the credit report, DU, or Loan Delivery edits.
If the Social Security number cannot be validated with the SSA, the loan is not eligible for sale to Fannie Mae.
Establishing Borrower Ownership Interest
A borrower must establish ownership interest in the security property and become liable for the note (whether individually or jointly) by:
signing the security instrument,
signing the mortgage or deed of trust note, and
taking title to the property in the name of the individual borrower(s).
If the security property is held in a life estate established under state property law, the following provisions apply:
The life tenant (the individual who has the right to possess and use the subject property during their lifetime) must be a borrower.
One (or more) remaindermen (individuals who have an irrevocable, vested and alienable interest in the subject property and who will receive full ownership of the subject property upon the death of the life tenant) may also be co-borrowers.
Both the life tenant and all remaindermen must sign the security instrument to convey their respective interests in the property.
For additional information, see B2-3-01, General Property Eligibility.
