Condominium Project Reviews
Based on your requests for an easier, more flexible process to originate and sell Condominium Unit Mortgages, we're offering expanded, comprehensive requirements for Condominium Unit Mortgages and condominium projects. From more options for accepted reciprocal reviews to streamlined reviews, you have competitive solutions and options available through the Single-Family Seller/Servicer Guide (Guide).
Using our criteria for condominium projects, you can quickly and effortlessly determine which review your condominium project falls under and identify the eligibility requirements and warranties you must satisfy to sell Condominium Unit Mortgages to Freddie Mac. What's more, projects that meet certain requirements need not undergo a full project review.
Established and New Condominium Projects
With two unique project statuses, each with clear and comprehensive criteria, it's easy to determine which eligibility requirements and warranties you need to satisfy to sell Condominium Unit Mortgages to Freddie Mac.
Project status |
Definition |
Established Condominium Projects |
It is an Established Condominium Project if:
- All units and common elements are complete and not subject to any additional phasing or additions; and
- At least 90 percent of the total units have been conveyed to the unit purchasers other than the developer; and
- The unit owners control the homeowners association.
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New Condominium Projects |
It is a New Condominium Project if:
- All units and common elements are not fully completed, or are subject to additional phasing or annexation; or
- Fewer than 90 percent of the total number of units in the project have been conveyed to the unit purchasers other than the developer; or
- The developer has not turned control of the homeowners association over to the unit owners.
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Download our Condominium Unit Mortgages and Project Reviews fact sheet
[PDF 127K] for more details.
Lender Benefits
- Quickly and effortlessly identify condominium projects and determine which eligibility requirements and warranties you must satisfy to sell us Condominium Unit Mortgages.
- Comprehensive condominium project criteria help you get projects approved easily and sell more Condominium Unit Mortgages to Freddie Mac.
Streamlined Review for Condominium Projects
We've combined speed, flexibility and simplicity in Freddie Mac's Streamlined Review for Condominium Projects. With Streamlined Review for Condominium Projects, mortgages secured by attached or detached units are eligible for delivery without a full project review, provided that:
- The unit must be in an Established Condominium Project
- The unit must secure a mortgage that is originated on a spot loan basis
- The mortgage must meet the required LTV/TLTV ratios for the occupancy type
- The unit is not a manufactured home and not an investment property
Lender Benefits:
- The process is easy and cost-effective. When you meet the eligibility requirements of a streamlined review, you will not be required to meet the additional warranties associated with a full project review, saving you precious time and resources.
- Approve more of your Condominium Unit Mortgages, without going through a full project review. You can quickly and effortlessly identify which condominium projects are eligible for a streamlined review.
Other Types of Condominium Projects
Our comprehensive requirements for 2- to 4-unit Condominium Projects and Detached Condominium Projects are designed to help you sell more Condominium Unit Mortgages to Freddie Mac. Plus, our reciprocal review options provide you with more ways to quickly and effortlessly obtain a project review.
With more reciprocal review options, you have more flexibility, and more sources for condominium reviews, saving you significant time and improving your front-end process with borrowers and back-end operations. Acceptable reciprocal reviews include:
Lender Benefits
- Gain eligibility for more of your detached condominium projects. Units in detached condominium projects to be occupied as a primary residence or second homes need only to meet the definition of a detached condominium project and the general project warranties.
- Use more approved sources to get your condominium projects reviewed, providing you more flexibility and saving you significant time, improving your front-end process with borrowers and back-end operations.
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