source:
  type: guide
  id: fnma-sel-b5-5.2-02
  authority: 'Fannie Mae Selling Guide B5-5.2-02 — Loans with Resale Restrictions:
    Eligibility, Collateral and Delivery Requirements'
  description: 'Fannie Mae Selling Guide B5-5.2-02 — Loans with Resale Restrictions:
    Eligibility, Collateral and Delivery Requirements.'
  coverage_tier: operative
obligations:
- id: fnma-sel-b5-5.2-02-full
  canonical_id: fnma-sel-b5-5.2-02-full
  section: 'Fannie Mae Selling Guide B5-5.2-02 — Loans with Resale Restrictions: Eligibility,
    Collateral and Delivery Requirements'
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: 'Fannie Mae Selling Guide B5-5.2-02 — Loans with Resale Restrictions:
      Eligibility, Collateral and Delivery Requirements'
    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: 'B5-5.2-02, Loans with Resale Restrictions: Eligibility, Collateral
      and Delivery Requirements (05/03/2023) Introduction This topic contains information
      on loans with resale restrictions loan and borrower eligibility, collateral
      and delivery requirements including: Eligibility Requirements Appraisal Requirements
      Pricing and Delivery Considerations Eligibility Requirements The following table
      describes the eligibility requirements for loans with resale restrictions. Criteria
      Requirements Loan Eligibility The loan must be a ﬁxed-rate or ARM with an initial
      ﬁxed period of ﬁve years or more and must comply with this Guide. Borrower Eligibility
      Borrowers must meet applicable criteria of the deed restriction. If income limit
      requirements are imposed by both the resale restrictions and the terms of the
      mortgage, the most restrictive will apply. Note: Age-related restrictions generally
      apply to the unit occupant and frequently require only one occupant to be aged
      55 and over. In such a case, the borrower could be younger than 55 provided
      there is a unit occupant aged 55 and over. This occupant can be a non-borrower
      household member or a renter in the case of an investment property. Property
      Type One- and two-unit properties are eligible, including PUDs, condos, and
      co-ops. Manufactured homes are not eligible unless they are located in a PERS-approved
      project. Appraisal Requirements In cases where the resale restrictions terminate
      automatically upon foreclosure (or the expiration of any applicable redemption
      period), or upon recordation of a deed-in-lieu of foreclosure, the appraisal
      should reﬂect the market value of the property without resale restrictions.
      The lender must ensure that the borrower and appraiser are aware of the resale
      restrictions and should advise the appraiser that they must include the following
      statement in the appraisal report: Published May 6, 2026 779 "This appraisal
      is made on the basis of a hypothetical condition that the property rights being
      appraised are without resale and other restrictions that are terminated automatically
      upon the latter of foreclosure or the expiration of any applicable redemption
      period, or upon recordation of a deed-in-lieu of foreclosure." In cases where
      the resale restrictions survive foreclosure or a deed-in-lieu of foreclosure,
      the appraisal must reﬂect the impact the restrictions have on value and be supported
      by comparable sales with similar restrictions. The appraisal report must note
      the existence of the resale restrictions and comment on any impact the resale
      restrictions have on the property''s value and marketability. Pricing and Delivery
      Considerations Pricing There are no speciﬁc LLPAs required for loans with resale
      restrictions. All other price adjustments that are otherwise applicable to the
      transaction will apply. For a list of current applicable LLPAs, see the Loan-Level
      Price Adjustment (LLPA) Matrix . Special Feature Codes Lenders must report SFC
      631 when delivering a loan secured by a property with resale restrictions that
      survive foreclosure or a deed-in-lieu of foreclosure. No special feature code
      is required when delivering a loan secured by a property with resale restrictions
      that terminate automatically upon foreclosure (or the expiration of any applicable
      redemption period), or the recordation of a deed-in-lieu of foreclosure unless
      the loan is part of a shared equity transaction. See B5-5.3-03, Shared Equity
      Transactions: Eligibility, Underwriting and Collateral Requirements for additional
      information. 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 Section B5-5.3, Shared Equity
      Transactions Published May 6, 2026 780'
  judgment: false
