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Fannie Mae Enhances Condo Guidelines November 10, 2014

Fannie Mae Enhances Condo Guidelines November 10, 2014

Fannie Mae announced enhancements to their condo project guidelines in it Selling Guide on November 10, 2014 making it easier for a condominium to qualify for a conventional loan delivered to Fannie Mae. Fannie currently has 3 methods of approving a condo project for financing: Limited Review, Full Review, and Fannie Mae Eligibility through the Project Eligibility Review Service (PERS)

fanniemae symbol

The following changes have been made to the guidelines for Condo Project Approval for a Full Review:

  • The Pre-Sale requirement for “New” condo projects has been decreased from 70% to 50%.
  • The number of days for which 15% of unit owners may be past due on common expense assessments has been increased from 30 days to 60 days past due.
  • Commercial space allocation has been increased from 20% to 25%
  • Allowing a single entity to own up to 2 units in a project consisting of 5 to 20 units.
  • Condo Projects that qualify for a Limited Review will no longer require fidelity/crime insurance.

You can review the update from Fannie Mae in its entirety at the following link https://www.fanniemae.com/content/announcement/sel1413.pdf

If a condo is not approvable then a conventional loan is not eligible on the condo project and it is deemed a non-warrantable condo project.

If you have questions or would like to see if you qualify for a Fannie Mae Loan please call us in the office at 410-412-3319 or apply online at www.PrimaryResidentialMortgage.info

John R. Thomas
Loan Officer – FHA, VA & USDA Specialist – NMLS – 38783
Primary Residential Mortgage, Inc. – Baltimore Maryland Mortgage Company
1220A E Joppa Rd
Towson, MD 21286
410-412-3319 MD Office
302-703-0727 DE Office
610-906-3109 PA Office
http://www.PrimaryResidentialMortgage.info