Shared Equity & Community Land Trusts
Leased land or resale restrictions can look unusual, but Fannie has specific pathways for eligible shared-equity housing.
Community land trust
A community land trust typically sells the home while retaining the land and leasing it to the homeowner under a long-term ground lease designed to preserve affordability.
Fannie eligibility
Fannie supports eligible community-land-trust and income/resale-restricted transactions when the ground lease, resale restrictions, appraisal, legal documents and required riders satisfy the shared-equity rules.
Leasehold is not automatically ineligible
Fannie purchases mortgages secured by eligible leasehold estates in markets where this ownership structure is accepted, including eligible 1–4 unit homes, condos, co-ops, PUDs and certain manufactured housing.
Official agency baseline
Fannie Mae Selling Guide · Freddie Mac Seller/Servicer Guide
These are agency-level rules. AUS findings, mortgage insurance, product restrictions and lender/investor overlays can still affect a real loan.