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.

You must search the internet to confirm, and justify in the Transaction Approval Memo, if the PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). has:

• any negative press;
• current or prior lawsuits;
• fair housing violations or other sanctions; and/or
• association with bad actors.