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Fannie Mae eligibility covers leasehold mortgages secured by CLT properties for purchase or refinance, with specific limits on borrower income, property types, and refinance pricing based on ground lease resale formulas. Lenders must follow manual underwriting rules and verify CLT capacity, experience, and ground-lease model requirements.",{"@graph":69,"@context":123},[70,84,106],{"@type":71,"itemListElement":72},"BreadcrumbList",[73,77,79,82],{"item":74,"name":75,"@type":76,"position":8},"https://docshare.wps.com","Home","ListItem",{"item":78,"name":9,"@type":76,"position":14},"https://docshare.wps.com/document/",{"item":80,"name":40,"@type":76,"position":81},"https://docshare.wps.com/document/research-report/",3,{"item":83,"name":65,"@type":76,"position":19},"https://docshare.wps.com/document/fannie-mae-and-community-land-trusts-an-overview-for-lenders/268504/",{"url":83,"name":65,"@type":85,"image":86,"author":91,"headline":65,"publisher":94,"fileFormat":97,"inLanguage":63,"description":67,"dateModified":98,"datePublished":99,"encodingFormat":97,"isAccessibleForFree":100,"interactionStatistic":101},"DigitalDocument",{"url":87,"@type":88,"width":89,"height":90},"https://docshare.wps.com/thumbnails/fannie-mae-and-community-land-trusts-an-overview-for-lenders/268504.png","ImageObject",300,407,{"name":92,"@type":93},"Oliver Hayes","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-10-30","2026-09-15",true,{"@type":102,"interactionType":103,"userInteractionCount":105},"InteractionCounter",{"@type":104},"ViewAction",17,{"@type":107,"mainEntity":108},"FAQPage",[109,115,119],{"name":110,"@type":111,"acceptedAnswer":112},"How does a community land trust (CLT) preserve affordable homeownership?","Question",{"text":113,"@type":114},"A low- or moderate-income household buys the home improvements at an affordable price, while the CLT retains land ownership and leases the land to the homeowner under a long-term ground lease. Resale provisions restrict the sale price so the home remains affordable for future qualified buyers.","Answer",{"name":116,"@type":111,"acceptedAnswer":117},"Which Fannie Mae loan products are eligible for CLT homebuyers?",{"text":118,"@type":114},"Fannie Mae Selling Guide products, including the MyCommunityMortgage suite, are eligible for CLT loans as long as qualifying ratios and requirements are met. DU products, Interest-Only products, HomeKeeper, and ARMS with a fixed term under five years are not eligible for CLT homebuyers.",{"name":120,"@type":111,"acceptedAnswer":121},"What underwriting approach is required for CLT-secured mortgages?",{"text":122,"@type":114},"These mortgages must be manually underwritten and are not eligible for submission through Desktop Underwriting (DU). 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A limited-income households purchases the home and improvements at affordable prices and the CLT, in turn, leases the land parcel on which the home is located to the homeowner by means of a long-tem ground lease (that is typically 99 years in length, inheritable and renewable) for an affordable monthly lease fee. The ground lease typically include provisions that restrict the price at which the home may be sold, should the homeowner ever choose to sell, so that the home will remain affordable to another low-or moderate-income homebuyer household.  \nWhile most CLTs are nonprofit, community-based, 501 (c)(3) organizations, eligible CLTs, according to Fannie Mae can also include public entities, such as state or local governments, counties, school districts, universities, or colleges.  \nFannie Mae Loan Products  \nFannie Mae purchases or securitizes first mortgage loans secured by a leasehold estate on property owned by a community land trust and the improvements on the property as long asthe property is acceptable as security for the mortgage.  \nCommunity land trusts are an ownership arrangement, requiring a leasehold mortgage, secured by the full value of the improvements and the value of the leasehold interest in the land. Accordingly, there is no ‘stand alone’ Fannie Mae mortgage product for CLThomebuyers. All products in the Fannie Mae Selling Guide, including the MyCommunityMortgage ™ suite of products, are eligible for CLT loans. Qualifying ratios, minimum down payment, cash reserve requirements, maximum loan terms, and other requirements must be met for whichever product is being used for a particular CLThomebuyer. Howeever, Fannie Mae DU® products, Interest-Only (IO) products, HomeKeeper®, and ARMS with a fixed term of less than five years are not eligible for CLT homebuyers.  \nEligible Borrowers  \nBecause of their focus on creating homeownership opportunities for households who would not otherwise be able to afford to purchase a home, community land trusts usually stipulate maximum income restrictions in order to be eligible to purchase a CLT home, in addition to restrictions on the resale of the home. Eligible borrowers must satisfy the specific eligibility criteria set up by the community land trust.  \nNote: If the lender is using a community lending mortgage and the borrower  \nincome limits for the community land trust differ from Fannie Mae’s income limits for the community lending mortgage, the income limits established by the community land trust apply.  \nEligible Property and Occupancy Types  \nAll mortgage loans secured by one-and two-unit principal residences are eligible for purchase by Fannie Mae, with the exception of manufactured homes and units in a co-op project.  \nLoan Eligibility  \nEligible Fannie Mae transaction types include first mortgages secured by community land trust properties that are either purchase or refinance transactions.  \nThe community land trust may permit the borrower to refinance the mortgage loan (including, in some cases, cash-out transactions. ) However, the homeowner may only refinance up to the current resale price, i.e., the maximum price for which the homeowner would be able to sell his or her home at that time, as determined by the ground lease resale formula. The CLT limits the amount that can be refinanced in order to protect the subsidy initially invested to make the home affordable in the first place. Lenders must document that the community land trust has approved a refinance transaction and must ensure that the refinance amount complies with the provisions of the homeowner’s ground lease agreement.  \nUnderwriting Considerations  \nThese mortgages must be manually underwritten and are not eligible, at this time, for submission through Desktop Underwriting (DU)®1. In addition, ","cbCaiht3tw1CyCpV","https://ap.wps.com/l/cbCaiht3tw1CyCpV","pdf",785217,14,"English","# Overview\n## Community land trust structure\n## Fannie Mae loan products\n## Eligible borrowers\n## Eligible property and occupancy types\n## Loan eligibility and refinance limits\n## Underwriting considerations\n## Key lender requirements","[{\"question\":\"How does a community land trust (CLT) preserve affordable homeownership?\",\"answer\":\"A low- or moderate-income household buys the home improvements at an affordable price, while the CLT retains land ownership and leases the land to the homeowner under a long-term ground lease. Resale provisions restrict the sale price so the home remains affordable for future qualified buyers.\"},{\"question\":\"Which Fannie Mae loan products are eligible for CLT homebuyers?\",\"answer\":\"Fannie Mae Selling Guide products, including the MyCommunityMortgage suite, are eligible for CLT loans as long as qualifying ratios and requirements are met. DU products, Interest-Only products, HomeKeeper, and ARMS with a fixed term under five years are not eligible for CLT homebuyers.\"},{\"question\":\"What underwriting approach is required for CLT-secured mortgages?\",\"answer\":\"These mortgages must be manually underwritten and are not eligible for submission through Desktop Underwriting (DU). They also cannot be underwritten using other automated underwriting applications because Fannie Mae uses an alternative method to calculate the loan-to-value (LTV) ratio for CLTs.\"}]","Fannie Mae and Community Land Trusts - An Overview for Lenders | PDF",35]