Short answer
Often, yes. Fannie Mae buys loans on homes with recorded resale restrictions, such as income limits, age rules, first-time buyer or occupancy requirements. The restrictions must be in the public land records and can't block the lender's right to foreclose. You must meet the restriction yourself, and the appraiser is told about it. Homes on community land trust ground leases follow added rules.
What counts as a resale restriction?
Fannie Mae's Selling Guide (B5-5.2-01) describes resale restrictions as limits written into a deed, covenant, ground lease or similar recorded document. Allowed types include income limits, age-related requirements, employment-related requirements, occupancy requirements and first-time homebuyer requirements. They can last for a set number of years or permanently.
What does the lender check?
- The restriction must be recorded, so it shows up in a routine title search.
- It can't get in the way of the lender curing a default or foreclosing.
- You must meet the restriction's own rules. If both the restriction and the loan program have income limits, the stricter one applies (B5-5.2-02).
- One- and two-unit homes, condos and planned communities are eligible, on a fixed-rate loan or an ARM with a longer initial fixed period.
How is a deed-restricted home appraised?
It depends on whether the restriction ends at foreclosure. If it does, the appraisal shows the value as if the restriction weren't there. If it survives foreclosure, the appraiser must show how it affects value, using sales of homes with similar restrictions. Either way, you and the appraiser must know about it.
What about community land trust homes?
With a community land trust, you buy the house and lease the land from the trust, often at a subsidized price below market value. Fannie Mae (B4-1.4-06) requires an appraiser experienced with these ground leases and a special Community Land Trust Ground Lease Rider signed by you and the lender and reflected in the land records. Shared equity homes, which cap both buyer income and resale price, follow a separate part of the Guide (B5-5.3).
See also homes on leased land and 55-plus communities.
Sources
- Fannie Mae Selling Guide, B5-5.2-01, Loans With Resale Restrictions: General Information (05/03/2023)
- Fannie Mae Selling Guide, B5-5.2-02, Loans with Resale Restrictions: Eligibility, Collateral and Delivery Requirements (08/05/2026)
- Fannie Mae Selling Guide, B4-1.4-06, Community Land Trust Appraisal Requirements (06/04/2025)
Checked November 2, 2026. Rules and dates change, so confirm current details before you rely on them.
General information only, not tax or legal advice. Program availability, eligibility and terms vary by lender and are subject to change and to underwriting approval. Not a commitment to lend.