source:
  type: guide
  id: fnma-sel-b2-3-01
  authority: Fannie Mae Selling Guide B2-3-01 — General Property Eligibility
  description: Fannie Mae Selling Guide B2-3-01 — General Property Eligibility.
  coverage_tier: operative
obligations:
- id: fnma-sel-b2-3-01-full
  canonical_id: fnma-sel-b2-3-01-full
  section: Fannie Mae Selling Guide B2-3-01 — General Property Eligibility
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide B2-3-01 — General Property Eligibility
    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: 'B2-3-01, General Property Eligibility (09/03/2025) Introduction
      This topic contains information on Fannie Mae’s property eligibility requirements,
      including: Overview Number of Units Property Location Property Requirements
      Acceptable Forms of Property Ownership Acceptable Dwelling Types Ineligible
      Properties Loan-Level Price Adjustments Uniform Appraisal Dataset (UAD) 3.6
      Policy Overview Fannie Mae purchases or securitizes eligible mortgages in all
      markets across a broad geographic range. This topic describes Fannie Mae’s property
      eligibility requirements. The requirements are designed to address a wide range
      of property types with varying characteristics; however, there may be instances
      when the unique nature of a particular property may require special consideration.
      In those cases, Fannie Mae encourages lenders to contact their Fannie Mae customer
      account team. Number of Units Fannie Mae purchases or securitizes ﬁrst-lien
      mortgages that are secured by residential properties when the dwelling consists
      of one to four units. Under some circumstances, Fannie Mae limits the number
      of dwelling units for certain types of mortgages or transactions. For the maximum
      allowable LTV, CLTV, and HCLTV ratios and credit score requirements based on
      the property type and number of units, see the Eligibility Matrix. Note: A one-unit
      property with an accessory dwelling unit (ADU) is deﬁned as a one-unit property
      and subject to all one-unit requirements, unless otherwise stated. See B2-3-04,
      Special Property Eligibility Considerations for additional information on ADUs.
      Property Location The security property must be located in the United States
      (including the District of Columbia), Puerto Rico, the U.S. Virgin Islands,
      or Guam. Published May 6, 2026 241 Property Requirements The mortgaged premises
      must be residential in nature as deﬁned by the characteristics of the property
      and surrounding market area (see B4-1.3-03, Neighborhood Section of the Appraisal
      Report); secured by an interest in real property within the meaning of the Internal
      Revenue Code as such term is deﬁned in 26 C.F.R. § 1.856-3; safe, sound, and
      structurally secure (see B4-1.3-06, Property Condition and Quality of Construction
      of the Improvements); the highest and best use of the property as improved (or
      as proposed per plans and speciﬁcations), and the use of the property must be
      legal or legal non-conforming (see B4-1.3-04, Site Section of the Appraisal
      Report); readily accessible by roads that meet local standards (see B4-1.3-04,
      Site Section of the Appraisal Report); served by utilities that meet community
      standards (see B4-1.3-04, Site Section of the Appraisal Report); and suitable
      for year-round use. Note: Certain aspects of the location of a property will
      require special consideration. For example, properties in resort areas that
      attract people for seasonal or vacation use are acceptable only if they are
      suitable for year-round use. Acceptable Forms of Property Ownership Title to
      the property must be held as fee simple (which may include title held in a life
      estate), leasehold estate, or as a co-op form of ownership. (See B2-2-01, General
      Borrower Eligibility Requirements B2-3-03, Special Property Eligibility and
      Underwriting Considerations: Leasehold Estates; and B4-2.3-04, Loan Eligibility
      for Co-op Share Loans, for additional information.) Note: Life estates satisfying
      the requirements described in B2-2-01, General Borrower Eligibility Requirements,
      are often chosen as a means to avoid probate. However, similar arrangements
      do not qualify as life estates for loan eligibility purposes if: the named successors
      under such arrangements do not have vested and irrevocable property rights in
      the subject property, such as with "lady bird deeds", or the current holder
      of the property can, before their own death, transfer full ownership of the
      subject property to a third party without the approval or consent of any contingent
      beneﬁciaries, such as under typical statutory "transfer on death deeds." Acceptable
      Dwelling Types Dwelling units for security properties may be detached, attached,
      or semi-detached. Published May 6, 2026 242 Properties may be located on an
      individual lot, in a condo project, in a co-op project, or in a planned unit
      development (PUD) or subdivision project. Properties located in a condo, co-op,
      or PUD project must meet Fannie Mae’s project standards requirements (see Chapter
      B4–2, Project Standards). Ineligible Properties Fannie Mae does not purchase
      or securitize mortgages on vacant land or land development properties; properties
      that are not readily accessible by roads that meet local standards; agricultural
      properties, such as farms or ranches; units in condo or co-op hotels (see B4-2.1-03,
      Ineligible Projects, for additional information; properties that are not secured
      by real estate such as, houseboats, boat slips, timeshares, and other forms
      of property that are not real estate (see B4-2.1-03, Ineligible Projects, for
      additional information; boarding houses; bed and breakfast properties; or properties
      that are not suitable for year-round occupancy regardless of location. Note:
      Group homes are not considered to be boarding houses. They are an eligible property
      type, including when leased to a business entity for use as a group home. Loan-Level
      Price Adjustments A Loan-Level Price Adjustment (LLPA) applies to certain property
      types, including multiple-unit properties and units in an attached condo project.
      These LLPAs are in addition to any other price adjustments that are otherwise
      applicable to the particular transaction. For the current LLPAs, see the Loan-Level
      Price Adjustment (LLPA) Matrix. Uniform Appraisal Dataset (UAD) 3.6 Policy Lenders
      using UAD 3.6 must follow the requirements in the UAD 3.6 Policy Supplement.
      Recent Related Announcements The table below provides references to recently
      issued Announcements that are related to this topic. Announcements Issue Date
      Announcement SEL-2025-07 September 03, 2025 Published May 6, 2026 243 Announcements
      Issue Date Announcement SEL-2025-04 June 4, 2025 Announcement SEL-2022-05 June
      01, 2022 Announcement SEL-2022-01 February 02, 2022 Announcement SEL-2020-05
      September 02, 2020'
  judgment: false
