Will Fannie Mae purchase loans made to buyers of shared equity homes?

Yes.  Fannie Mae has developed guidelines that allow buyers with resale price restrictions to take advantage of any of Fannie Mae’s community lending products.  The rules are designed to protect the lender and Fannie Mae’s ability to ensure repayment of the loan while allowing program sponsors to meet their public policy goals.  They allow for restrictions that survive a lender’s foreclosure on the home under certain circumstances.  Deed restrictions must be reviewed and approved by Fannie Mae in advance but for Community Land Trust ground leases based on the Model Lease Fannie Mae has developed a standard lease rider that can be attached to ensure conformance with their guidelines.

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