source:
  type: guide
  id: fnma-sel-b5-5.2-01
  authority: 'Fannie Mae Selling Guide B5-5.2-01 — Loans With Resale Restrictions:
    General Information'
  description: 'Fannie Mae Selling Guide B5-5.2-01 — Loans With Resale Restrictions:
    General Information.'
  coverage_tier: operative
obligations:
- id: fnma-sel-b5-5.2-01-full
  canonical_id: fnma-sel-b5-5.2-01-full
  section: 'Fannie Mae Selling Guide B5-5.2-01 — Loans With Resale Restrictions: General
    Information'
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: 'Fannie Mae Selling Guide B5-5.2-01 — Loans With Resale Restrictions:
      General Information'
    source_class: fnma-guide
    source_url: https://singlefamily.fanniemae.com/media/document/pdf/selling-guide
    snapshot_id: 5f7b8b79da595d76
    fetched_at: '2026-05-25T14:09:57Z'
    content_hash: sha256:98cf85a02861bbe84914a0e339b327c8fc131869a8a573882007bbeea60c5701
    paragraph_quote: 'B5-5.2-01, Loans With Resale Restrictions: General Information
      (05/03/2023) Introduction This topic contains general information on loans with
      resale restrictions, including: Overview Allowable Resale Restrictions Duration
      of Resale Restrictions Title Insurance Requirements Default Remedies Rights
      to Insurance Settlements and Condemnation Proceeds Overview Resale restrictions
      are a right in perpetuity or for a certain number of years, stated in the form
      of a restriction, easement, covenant, or condition in any deed, mortgage, ground
      lease, agreement, or other instrument executed by or on behalf of the owner
      of the land. The resale restrictions may limit the occupancy of all or part
      of the land to individuals meeting certain conditions, such as age (senior communities
      must comply with applicable law). When resale restrictions are included in a
      mortgage, the terms must comply with this Guide. Note: This topic does not pertain
      to loans that are part of shared equity transactions, which have resale restrictions
      that limit both income eligibility and impose a maximum resale price. See Section
      B5-5.3, Shared Equity Transactions for additional information. Allowable Resale
      Restrictions Fannie Mae will purchase loans that are subject to one or more
      of the following types of resale restrictions: income limits, age-related requirements,
      employment-related requirements, occupancy requirements, ﬁrst-time homebuyer
      requirements, and restrictions on group homes or homes that are principally
      used to serve residents with disabilities. Some restrictions are likely to occur
      only in combination with others and it is permissible for more than one Published
      May 6, 2026 777 resale restriction to apply to a single loan. Duration of Resale
      Restrictions Fannie Mae will purchase loans secured by properties subject to
      resale restrictions in the following circumstances: when the restrictions terminate
      automatically upon foreclosure (or the expiration of any applicable redemption
      period), upon the recordation of a deed-in-lieu of foreclosure, or when the
      resale restrictions survive foreclosure. Note: If the resale restrictions survive
      foreclosure, the lender represents and warrants that the resale restrictions
      do not impair the servicer''s ability to foreclose on the restricted property.
      There are no restrictions on the length of the period in which the resale restrictions
      may remain in place on the property. Title Insurance Requirements The source
      and terms of the resale restrictions must be included in the public land records
      so that they are readily identiﬁable in a routine title search. Default Remedies
      The presence of resale restrictions must not impair Fannie Mae''s legal rights
      to cure a default under the loan terms, to foreclose on the subject property,
      or to otherwise protect Fannie Mae''s interests under the mortgage. Rights to
      Insurance Settlements and Condemnation Proceeds Fannie Mae must have ﬁrst claim
      to insurance settlements and condemnation proceeds. Recent Related Announcements
      The table below provides references to recently issued Announcements that are
      related to this topic. Announcements Issue Date Announcement SEL-2023-04 May
      03, 2023 Published May 6, 2026 778'
  judgment: false
