Section 101

Eligible Properties

Requirements

For a Mortgage LoanMortgage LoanMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or  a mortgage debt obligation with a Fannie Mae credit enhancement. to be eligible for purchase, it must be secured by a multifamily residential property that meets all of the following:

  • contains at least 5 dwelling units;
  • does not include a stand-alone building containing less than 5 dwelling units (e.g., a single-family structure), unless it:
    • was originally constructed as part of a single multifamily development; or
    • is situated on the same tax parcel, or shares a tax parcel boundary, with a
      • multifamily property, or
      • MH CommunityMH CommunityResidential real estate development with lots on which manufactured homes are located, together with amenities, utility services, landscaping, roads, and other infrastructure. ;
  • has suitable bathroom and cooking facilities within each unit;
  • is located in 1 of the 50 states of the United States, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, or Guam;
  • is located on a publicly dedicated, all-weather road, or is accessible by a satisfactory easement from this type of road;
  • consists of either a single parcel or multiple parcels per Part II, Chapter 1: Attributes and Characteristics, Section 102.01: Single Borrower Ownership;
  • any commercial space is:
    • physically part of, and connected to, the multifamily space; or
    • a stand-alone building that is on the same tax parcel;
  • has adequate water and sewer service, which may be delivered by a public utility or, where commercially acceptable for the market area, by a private system or utility;
  • offers a suitable level of utility service (e.g., electrical, natural gas, refuse removal, etc.) for the market area;
  • either complies with all applicable statutes, rules, regulations, and housing and building codes, or is being appropriately remediated;
  • does not contain any Modular HousingModular HousingProperty on which the multifamily Improvements are constructed of sections built off-site, such as modular, prefabricated, panelized, or sectional housing, and then assembled and installed on-site on a permanent foundation (and not a chassis). ; and
  • has access to police and emergency services.

Guidance

To determine if a single-family structure was originally constructed as part of a single multifamily development, you should consider if all buildings:

  • were originally constructed at the same time;
  • were historically bought, operated, and sold as 1 ProjectProjectMultifamily buildings on multiple Properties, owned by the same Borrower, and that comply with Part II, Chapter 1: Attributes and Characteristics, Section 102.01: Single Borrower Ownership.  since originally constructed;
  • are generally consistent in physical appearance, with distinct boundaries such as
    • signage,
    • gates/fencing,
    • shared parking, or
    • dedicated streets;
  • are located on a single tax parcel or adjacent tax parcels;
  • are configured without any non-BorrowerBorrowerPerson who is the obligor per the Note. owned parcels or buildings separating/splitting or within the multifamily development; and
  • are not part of a predominately homeowner development.