A project can also be considered “Established” with less than 90% of the units sold to unit purchasers, as long as the unsold units are being retained by the developer as rental units.At least 90% of the total units in the project have been conveyed (sold or under contract) to unit purchasers…īut here is where the wiggle room comes in….Control of the HOA must have been turned over to the unit owners.

The project may not be subject to additional phasing or annexation.The project must be 100% complete, including all units and common elements.In order to be considered “Established”, the following must be true: So, how do you know if your condo is considered “New” or “Established”? Recent guideline updates have made this more complicated, but also give you more wiggle room to make your project work. It will require a full review, regardless of the specific loan parameters. Keep in mind that if a project is “New Construction”, it is not eligible for a limited review. The three parameters that determine whether a loan is eligible for limited review are:įor properties in all states, except Florida, the maximum LTV/CLTV for each occupancy type is:įor properties located in Florida, the maximum LTV/CLTV for each occupancy type is: The logic behind a limited review is that the loan itself is a low enough risk that the review of the project does not need to be as rigorous. What makes a loan eligible for a limited review type? Whether a limited review can be performed is dependent on the parameters of the individual loan, not the project itself. The Fannie Mae Selling Guide lists several different review types for condos, but the most common are Limited Review and Full Review. One of the most confusing aspects of reviewing a condominium is trying to determine which review type is required for your subject loan. We are modern-day alchemists who can turn a 1003 and some pay stubs into a new home for a family. We hope we can provide some insight on how to review a condominium project. This labyrinth of doubt and confusion is Project Review, specifically condominium and cooperative property types.

Experienced processors develop headaches and need to get another cup of coffee. Senior underwriters break out into nervous sweats.

Yet, within this society of secret knowledge, exists a field of expertise that confounds and intimidates even the most seasoned mortgage professionals. The knowledge and processes we utilize to do so can seem just as arcane and occult to our borrowers as the rituals of ancient alchemists must have seemed to a simple farmer. For those of us who have worked in the mortgage industry long enough to become comfortable and familiar with all the jargon and acronyms, it can be hard to remember what it was like to feel overwhelmed and uncertain about the mortgage process.

Fnma condo limited review requirements