Fannie Mae Selling Guide B5-3.1-01 — Conversion of Construction-to-Permanent Financing: Overview

fnma-sel-b5-3-1-01

Fannie Mae Selling Guide B5-3.1-01 — Conversion of Construction-to-Permanent Financing: Overview.

This register: .xlsx .csv

Verbatim regulatory text (1)

Verbatim provisions from Fannie Mae Selling Guide B5-3.1-01 — Conversion of Construction-to-Permanent Financing: Overview — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.

Fannie Mae Selling Guide B5-3.1-01 — Conversion of Construction-to-Permanent Financing: Overview

Effective 2025-06-04 · publisher's stamp for this provision

B5-3.1-01, Conversion of Construction-to-Permanent Financing: Overview (06/04/2025) Introduction This topic contains an overview of conversion of construction-to-permanent mortgage loan financing. Conversion of Construction-to-Permanent Financing Overview Uniform Appraisal Dataset (UAD) 3.6 Policy Conversion of Construction-to-Permanent Financing Overview The conversion of construction-to-permanent financing involves the granting of a long-term mortgage to a borrower for the purpose of replacing interim construction financing that the borrower has obtained to fund the construction of a new residence. Construction-to-permanent financing can be structured as a transaction with one closing or a transaction with two separate closings. The borrower must hold title to the lot, which may have been previously acquired or be purchased as part of the transaction. All construction work, including any work that could entitle a party to file a mechanic's or materialmen’s lien, must be completed and paid for, and all mechanic's liens, materialmen’s liens, and any other liens and claims that could become liens relating to the construction must be satisfied before the mortgage loan is delivered to Fannie Mae. The lender must retain in its individual loan file a Form 1004D or a completion alternative of the completed property. When a construction-to-permanent mortgage loan provides funds for acquisition or refinancing of an unimproved lot and the construction of a residence on the lot, the lender must retain a certificate of occupancy or an equivalent form from the applicable government authority. The lender must use Fannie Mae's uniform mortgage instruments to document the permanent mortgage. These documents may not be altered to include any reference to construction of the property, other than any alteration that Fannie Mae specifically requires. Attached units in a condo project and all co-op properties are ineligible for construction-to-permanent financing. Detached units in condo projects are permitted for construction-to-permanent financing, including manufactured homes in a condo project (subject to applicable project review requirements). For guidance on data entry for construction-to-permanent transactions in DU, see the related Desktop Underwriter Job Aid. Uniform Appraisal Dataset (UAD) 3.6 Policy Lenders using UAD 3.6 must follow the requirements in the UAD 3.6 Policy Supplement .

Source: Fannie Mae Selling Guide B5-3.1-01 — Conversion of Construction-to-Permanent Financing: Overview · source URL · snapshot 2897f21e1e729b42

Get this regulation in your AI window

Announcements change Guide topics, but the old wording keeps circulating. An assistant will hand you the prior version and name no date at all.Put the verbatim text and its effective date in front of your assistant, instead of whatever it remembers.

Open in Claude Open in ChatGPT

Open in Claude shows the one-time setup: paste one address, no account with us. Open in ChatGPT asks ChatGPT about this page, with no setup. Either way it’s free.

Next step: the FNMA AI Lender Letter playbook. Run it in your AI window →

Get notified if this rule changes

One email when Fannie Mae Selling Guide B5-3.1-01 — Conversion of Construction-to-Permanent Financing: Overview changes: what changed, the new verbatim text, and the effective date. Nothing else.

Double opt-in: we send a confirmation link first. Following one section does not subscribe you to anything else. Privacy.

Source of record: https://claudeforcompliance.com/regs/fnma-sel-b5-3-1-01/ · register fnma-sel-b5-3-1-01 · verbatim, source-snapshotted regulator text from the Claude for Compliance corpus. To work from every register at once, download the corpus and follow the methodology.