None of the agency guides in Strata sets a general maximum number of acres: Freddie Mac and USDA say so expressly, and the Fannie Mae Selling Guide and FHA Handbook 4000.1 contain no general acreage cap. Fannie Mae applies an acreage limit only to Texas Section 50(a)(6) loans, through Texas homestead law. The test is whether the property is residential: Fannie Mae and Freddie Mac do not buy loans on agricultural or farming properties, USDA excludes land and buildings used principally to produce income, and FHA appraisers must include Surplus Land in the value but exclude a second lot that can be developed separately. Other acreage caps come from lender overlays; for example, The Loan Store's FHA guidelines treat properties with more than 40 acres as ineligible.
Fannie Mae (conventional)
- Fannie Mae does not purchase loans secured by agricultural-type properties, undeveloped land or land-development properties, so the lender must review appraisals for sites larger than is typical for residential properties in the neighborhood. Fannie Mae B4-1.3-03
- A site of the size typical for one-unit building sites in the area is eligible regardless of the share of appraised value it represents, as long as comparable sales show the property is a typical residential property for that neighborhood. Fannie Mae B4-1.3-03
- The appraisal must value the actual site, not a hypothetical portion; for example, the appraiser may not appraise only 5 acres of an unsubdivided 40-acre parcel. Fannie Mae B4-1.3-04
- For a Texas Section 50(a)(6) loan, the homestead property may not exceed the acreage limit set by Texas law, and a borrower who owns adjacent land must show the mortgaged homestead is a separate parcel within that limit. Fannie Mae B5-4.1-02
Freddie Mac (conventional)
- Freddie Mac does not limit mortgage purchases based on the size of the site; the appraisal must report the total site area and should include comparable sales with similar site sizes. Freddie Mac 5605.4
- Freddie Mac does not purchase mortgages on vacant or undeveloped land or on properties used primarily for agriculture or farming; if a property is zoned agricultural, it must be residential in nature and not primarily used for farming or ranching. Freddie Mac 5601.1 Freddie Mac 5605.4
FHA
- When the property has two or more platted lots under one legal description, a second vacant lot that can be divided or developed separately without a zoning nonconformity is Excess Land, and its value must be excluded from the appraised value. FHA 4000.1 II.D.3.b.vi
- Surplus Land, which cannot be separated from the property and sold off, must be included in the valuation. FHA 4000.1 II.D.3.b.vi
USDA
- There is no specific limitation on the size or acreage of the site; the appraiser must explain adjustments and how the subject compares with other single-family sites in the area. USDA HB-1-3555 12.4
- The property must not include buildings or land used principally for income-producing purposes, such as barns, silos or livestock facilities used primarily for agricultural, farming or commercial enterprise; such buildings no longer in commercial use and used for storage are allowed. USDA HB-1-3555 12.4
Lender example
- Lenders may add their own limits: The Loan Store's FHA guidelines list properties with more than 40 acres as ineligible. The Loan Store FHA Guidelines
The FHA Handbook 4000.1 in Strata does not set a maximum number of acres; lenders may apply their own overlays.
Sources
- Fannie Mae Selling Guide, September 2, 2026 version: B4-1.3-03, Neighborhood Section of the Appraisal Report (p. 567); B4-1.3-04, Site Section of the Appraisal Report (p. 571); B5-4.1-02, Texas Section 50(a)(6) Loan Eligibility (Loan Security Property) (p. 763)
- Freddie Mac Single-Family Seller/Servicer Guide, September 16, 2026 version: 5605.4(a)(v), Site size (p. 5605-11); 5601.1(b), Ineligible properties (p. 5601-2); 5605.4(a)(i)(A), Eligible zoning classification (p. 5605-10)
- FHA Single Family Housing Policy Handbook 4000.1, August 12, 2026 version: II.D.3.b.vi, Excess and Surplus Land (p. 817, 818)
- USDA HB-1-3555 Guaranteed Loan Program Handbook, March 2, 2026 version: Chapter 12, 12.4 Site Requirements (p. 12-4, 12-5)
- The Loan Store FHA Guidelines, November 21, 2025 version: Ineligible Properties (p. 97)
Agency guides set the baseline; individual lenders can add stricter overlays. Sources are the guideline versions in Zeitro Strata as of October 29, 2026.
