Fannie Mae issued Selling Guide Announcement SEL-2025-10 (Announcement), setting forth updates to the Selling Guide. Per the Announcement, Fannie Mae:
- Introduced HomeStyle Refresh, a rebranded version of the HomeStyle Energy mortgage with expanded financing options and streamlined requirements;
- Clarified and updated HomeStyle Renovation financing policies by expanding eligible upfront disbursements, removing $50,000 renovation cap for manufactured homes, and providing enhanced guidance on limited cash-out refinance transactions;
- Removed the 3% acceptability requirement for 7- and 10-year ARMS that the difference not exceed 3% when lenders determine whether an ARM loan is acceptable for purchase by Fannie Mae when subtracting the initial note rate of the loan from the fully indexed rate in effect when the loan originated;
- Expanded property eligibility requirements criteria for accessory dwelling units (ADU’s) and manufactured homes only for lenders utilizing UAD 3.6 policy; and
- Eliminated duplicative and overly specific language regarding closing attorneys, settlement agents, and appraiser selection criteria, added references to additional lender/servicer resources for identifying fraud, and clarified that any valid match to the OFAC sanctions list must be reported to Fannie Mae within 24-hours of identification.
Revisions related to HomeStyle Refresh apply to HomeStyle Refresh loans with application dates on or after Mar. 31, 2026. Revisions related to the expanded ADU criteria is effective Mar. 31, 2026, and only available to lenders utilizing UAD 3.6 policy. ). All other revisions are effective December 10, 2025.
Click to view the Fannie Mae Selling Guide ANnouncement SEL-2025-10: https://www.tenaco.com/wp-content/uploads/2025/12/Fannie-Mae-Selling-Guide-Announcement-SEL-2025-10-12-10-25.pdf
