Guide Update 26-14
:
Property Value Allocation
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Primary Audience: Credit Underwriting |
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HIGHLIGHTS |
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Effective for all Mortgage Loans under application on or after June 30, 2026, updated Part II, Chapter 2: Valuation and Income, and Part III, Chapter 5: Seniors Housing Properties, requiring you to:
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Primary Changes
- Updated Part II, Chapter 2: Valuation and Income:
- requiring you to review the Property's ownership history for any Acquisition;
- modifying Underwriting Value requirements for:
- cost of capital improvements or repairs that increase the Property's value; and
- actual Acquisition cost exclusions;
- for non-Seniors Housing Property Acquisitions requiring you to:
- determine if any portion of the Property's Acquisition price is allocated to
- Personal Property, and/or
- Intangible Property; and
- limit the Mortgage Loan amount to no more than 90.00% of the Property's Acquisition price allocated to
- real estate, and
- Improvements.
- determine if any portion of the Property's Acquisition price is allocated to
- Updated Part III, Chapter 5: Seniors Housing Properties to:
- address Seniors Housing Property Acquisitions; and
- limit the original Seniors Housing Mortgage Loan UPB to no more than 100% of the lesser of the
- applicable Appraised Value, or
- Property's Acquisition price amount attributed to
- land, and
- Improvements.
- Added Glossary terms for
- Intangible Property, and
- Purchase/Sales Agreement.
Questions
Please contact your Fannie Mae Deal Team with any questions.