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)
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
