B6-1-04, Eligible HUD-Guaranteed Section 184 Mortgages (12/14/2022)

Any approved Fannie Mae lender may deliver HUD-guaranteed Section 184 mortgages to Fannie Mae provided the lender obtains the required HUD loan guarantee.

Fannie Mae will purchase or securitize HUD-guaranteed Section 184 mortgages under the following conditions:

• The HUD Section 184 mortgage must comply with HUD requirements.

• The loan must be secured by one- to four-unit properties located on individual lots or in a condo, cooperative, or PUD project.

• HUD Section 184 mortgages may be secured by a manufactured home if it meets HUD's requirements.

• The mortgage transaction may be a purchase or a refinance transaction.

• HUD Section 184 mortgages that are subject to an interest rate buydown plan are not permitted.

Lenders must adhere to HUD’s requirements concerning combination construction/permanent HUD 184 mortgages. These are limited to whole loan deliveries only.

Fannie Mae will not purchase a HUD-guaranteed Section 184 mortgage that includes as part of the collateral, personal property, cash, notes, an interest in securities, royalties, annuities, and any other property that is transferable and for which a present value may be determined.

However, the construction escrow account that is required when these mortgages are closed as combination construction/permanent mortgages, as well as any partially completed improvements, must be part of the collateral.

Lenders must report SFC 202 when selling HUD Section 184 (and 184A) loans to Fannie Mae.

Section 184 loans are assumable as of the note date. When selling such loans to Fannie Mae, the Assumption Indicator in the Loan Delivery application must be "True" (which means assumable).