If I’m purchasing a property on a road that is private and therefore not maintained by the local municipality, do I need a Private Road Maintenance Agreement with my neighbors in order to qualify for a mortgage?

Yes, you may need a Private Road Maintenance Agreement (PRMA) to qualify for a mortgage, but it depends on the loan type. Some mortgage programs require a PRMA, while others accept a recorded easement or state-assigned maintenance responsibilities. Here’s what you need to know:

Conventional Loans

• Fannie Mae: A PRMA is typically required unless state law assigns maintenance responsibilities. The agreement should outline who maintains the road and how costs are shared.
• Freddie Mac: Does not require a PRMA, but does require a permanent easement and that the road is maintained to community standards.

FHA Loans

• A PRMA is not required. However, there must be a recorded, permanent easement and the road must be all-weather and accessible for emergency and delivery vehicles.

USDA Loans

• A PRMA is not required, but a recorded easement and all-weather access are necessary. Requirements can vary, so consult with your lender.

VA Loans

• As of November 2022, a PRMA is no longer required. A recorded permanent easement or right of way to a public road is sufficient.

To learn more about specific mortgage requirements, or to get help drafting a Private Road Maintenance Agreement, be sure to speak with an experienced mortgage broker.