4501.6: Eligible property and appraisal requirements for Home Possible® Mortgages (10/29/18)

(a) Eligible property

A Home Possible Mortgage must be secured by a 1- to 4-unit Primary Residence.Home Possible Mortgages secured by Manufactured Homes must comply with all requirements of Chapter 5703 and this chapter. Where the requirements of Chapter 5703 and this chapter conflict, the following will apply:

1. A-minus Mortgages are not eligible

2. Second homes are not eligible

3. Cash-out refinance transactions are not eligible

4. The eligible sources of funds used to qualify the Borrower for the Mortgage transaction are those permitted for Home Possible Mortgages

5. Mortgage insurance coverage levels must be those used for Mortgages secured by a Manufactured Home

(b) Appraisal requirements

The Seller must obtain an appraisal with an interior and exterior inspection that meets the requirements of Chapter 5601 unless the Last Feedback Certificate includes an automated collateral evaluation offer stating that the Mortgage is eligible for collateral representation and warranty relief with an appraisal waiver and the Seller has accepted the offer. See Section 5601.9(c) for more information on automated collateral evaluation.