Is a property eligible for FHA financing if there are deed restrictions?

The Mortgagee must determine that any legal restrictions on conveyance conform with the requirements in 24 CFR § 203.41.
For additional information see Handbook 4000.1 II.A.1.b.v. available at:
24 CFR § 203.41:

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.

Topic Number: KA-01289