Fannie Mae Selling Guide B5-3.1-01 — Conversion of Construction-to-Permanent Financing: Overview
Fannie Mae Selling Guide B5-3.1-01 — Conversion of Construction-to-Permanent Financing: Overview.
Verbatim regulatory text
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
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 .
Operationalizing Fannie Mae Selling Guide B5-3.1-01 — Conversion of Construction-to-Permanent Financing: Overview
This is verbatim, source-snapshotted regulator text from the Claude for Compliance open corpus. To turn a rule like this into compliance work product: gap-analyze your policies and procedures (P&Ps) against these requirements to surface stale, conflicting, or missing provisions; operationalize any change with a ready-to-run update kit; and produce audit-ready evidence — every step grounded only in the regulator’s own words, never invented.
To work from the whole rulebook rather than this one page: download the corpus — every register on this site, verbatim, each with its source snapshot and effective date — then follow the methodology. It asks your assistant to answer only from the downloaded text, cite the register id and effective date it used, and tell you when the corpus does not cover something instead of filling the gap from memory. Running it locally also means no one sees which regulations you are looking at.
Source of record: https://claudeforcompliance.com/regs/fnma-sel-b5-3-1-01/
· register fnma-sel-b5-3-1-01 · Claude for Compliance. Free to read and download;
see regulatory updates and methodology.