Leasehold estates
You can finance a home on leased land with conventional financing when the lease structure and market support the collateral.
Fannie allows leasehold mortgages
Fannie purchases eligible loans secured by leasehold estates in markets where this ownership form has demonstrated market acceptance.
Eligible property types
Fannie's current leasehold framework can include one- to four-unit properties, condos, co-ops, PUD units and certain manufactured homes in approved projects.
The ground lease must work
Lease term, assignment, lender protections, renewal or purchase options, marketability and appraisal treatment all matter. The lease cannot undermine the mortgage's collateral position.
Official guide baseline
Fannie Mae Selling Guide · Freddie Mac Seller/Servicer Guide
Property eligibility, valuation method, appraisal findings, AUS messages and lender overlays all matter. The appraisal supports collateral eligibility; it does not replace underwriting.