The term "tillable" is nowhere to be found in the Fannie Mae selling guides.
Here's what it does say:
B4-1.4-03, Appraisal Report Review: Property Location (04/01/2009)
Introduction
This topic contains information on property location, including:
Property Location
Adjoining Properties
Properties with Outbuildings
Property Location
Fannie Mae will purchase or securitize mortgages that are secured by residential properties in urban, suburban, or rural areas.
To be eligible for purchase or securitization, mortgage loans must be secured by properties that are residential in nature—based on the characteristics of the subject property, zoning, and the present land use.
Fannie Mae does not purchase or securitize mortgages on the following property types:
agricultural-type properties such as farms, orchards, or ranches,
undeveloped land,
land development-type properties,
properties that are not suitable for year-round occupancy regardless of location, and
Note: Certain aspects of the location of a property will require special consideration. For example, properties in resort areas that attract people for seasonal or vacation use are acceptable only if they are suitable for year-round use.
properties that are not readily accessible by roads that meet local standards.
Adjoining Properties
Appraisers must consider present or anticipated uses of adjoining properties that may adversely affect the value or marketability of the subject property.
Properties with Outbuildings
Properties with outbuildings require special consideration in the underwriting and appraisal review.
Type of Outbuilding Acceptability
Minimal outbuildings—such as small barns or stables—that are of relatively insignificant value in relation to the total appraised value of the subject property. The property is acceptable provided the outbuildings are typical of other residential properties in the subject area.
A small barn or stable.
The appraiser must demonstrate that the improvements are typical of properties for which an active, viable residential market exists, and must present similar improvements in comparable sales.
An atypical minimal outbuilding. The property is acceptable provided the appraiser’s analysis reflects little or no contributory value for it.
Significant outbuildings, such as silos, large barns, storage areas, or facilities for farm-type animals.
The presence of the outbuildings may indicate that the property is agricultural in nature. The lender must determine whether the improvements are residential or agricultural in nature, regardless of whether the appraiser assigns value to the outbuildings.
