Condominium Project Reviews
Freddie Mac and Fannie Mae have developed standardized Condominium Project Questionnaire forms to provide greater consistency and clarity.
We offer expanded, comprehensive eligibility and review requirements for Condominium Unit Mortgages in condominium projects. Our requirements provide a sequential process to follow for an efficient and effective workflow. From a streamlined review for established projects to reciprocal reviews, you'll have solutions and options for mortgages you originate secured by condominium units.
Project Review and General Project Eligibility Requirements
- See Section 5701.2(a), Condominium Project Review Requirements, in the Single-Family Seller/Servicer Guide (Guide) for our condominium project review requirements and an overview of the sequential process for Freddie Mac’s condominium project review and eligibility requirements.
- Freddie Mac's Condominium Project eligibility requirements have two components (except for Detached Condominium Projects – see Guide Section 5701.7 (b) for eligibility requirements for this type of project):
- General condominium project eligibility requirements in Guide Section 5701.2(b), General Condominium Project Eligibility Requirements; and
- Condominium project eligibility requirements for one of the particular project review types in either Guide Section 5701.4, Streamlined Reviews, 5701.5, Established Condominium Projects, 5701.6, New Condominium Projects, 5701.7, Other Condominium Projects, or 5701.9, Reciprocal Project Reviews.
Established and New Condominium Projects
With two unique project statuses, each with clear and comprehensive criteria, it's easy to determine which eligibility requirements you need to satisfy to sell Condominium Unit Mortgages to Freddie Mac.
|Established Condominium Projects
Guide Section 5701.5
It is an Established Condominium Project if:
|New Condominium Projects
Guide Section 5701.6
It is a New Condominium Project if:
Download our Condominium Unit Mortgages and Project Reviews fact sheet and job aid for Determining Condominium Project and Mortgage Eligibility for more details. You'll also want to use one of the following optional forms to collect information from HOAs and management firms: Condominium Project Questionnaire – Full Form or Condominium Project Questionnaire – Short Form.
- Quickly identify condominium projects and determine which eligibility requirements you must satisfy to sell us Condominium Unit Mortgages.
- Specific condominium project criteria help you get projects approved easily and sell more Condominium Unit Mortgages to Freddie Mac.
Streamlined Review for Established Condominium Projects
We've combined flexibility and simplicity in Freddie Mac's streamlined review for established condominium projects. With a streamlined review (Guide Section 5701.4), only the following requirements need to be met:
- The unit must be in an established condominium project.
- The mortgage must meet the required LTV/TLTV/HTLTV ratios for the occupancy type.
- The unit is not a manufactured home and not an investment property.
- The process is easy and cost-effective. When you meet the eligibility requirements of a streamlined review, you will not be required to comply with the project review requirements for an established condominium project.
- Approve more of your Condominium Unit Mortgages, without going through a full project review.
Other Types of Condominium Projects and Reciprocal Reviews
Our requirements for 2- to 4-unit condominium projects (Guide Section 5701.7(a)) and detached condominium projects (Guide Section 5701.7(b)) are designed to help you sell more Condominium Unit Mortgages to Freddie Mac. Plus, our reciprocal review (Guide Section 5701.9) options provide you with more flexibility to obtain a project review. Acceptable reciprocal reviews include:
- Fannie Mae Project Eligibility Review Service (PERS) – Final project approval.
- Seller has approved as a Fannie Mae "Full Review," submitted to Fannie Mae's Condo Project ManagerTM(CPMTM)* and received a project acceptance certification.
- Federal Housing Administration (FHA) – approved condominium projects for FHA mortgages, available online at https://entp.hud.gov/idapp/html/condlook.cfm.
- Gain eligibility for more of your mortgages secured by units in detached condominium projects. Detached condominium projects need only meet the condominium project review requirements (Guide Section 5701.2(a)), the definition of a detached condominium project, and certain other project eligibility requirements (Guide Section 5701.7(b)).
- Reciprocal reviews may provide you more flexibility to capture additional market share.
Get More Information
- Refer to Guide Chapter 5701 for complete requirements for condominiums.
- Download our Condominium Unit Mortgages and Project Reviews fact sheet and job aid for Determining Condominium Project and Mortgage Eligibility for more details.
- Download our optional forms, Condominium Project Questionnaire – Full Form or Condominium Project Questionnaire – Short Form to collect project information from HOAs and management firms.
- Discover additional business opportunities and Put Your Condo Mortgage Financing Into High Gear.
- Read Going Condo: Four Reasons it Makes Sense in Today's Market by Christina Boyle, SVP and Head of Single-Family Sales & Relationship Management.
The information in this document is not a replacement or substitute for information found in the Single-Family Seller/Servicer Guide and/or the terms of your Master Agreement and/or other Pricing Identifier Terms.
*Condo Project Manager and CPM are trademarks of Fannie Mae.