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Condominium Project Reviews

We offer expanded, comprehensive eligibility and review requirements for Condominium Unit Mortgages in condominium projects. Our requirements have two components and provide a sequential process flow of project reviews and eligibility requirements, supporting 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

  • Freddie Mac's condominium project eligibility requirements in the Single-Family Seller/Servicer Guide (Guide) have two components:
    • The general condominium project eligibility requirements in Guide Section 42.2(b), General Condominium Project Eligibility Requirements.
    • The condominium project eligibility requirements for one of the particular project review types in either Guide Section 42.4, Streamlined Reviews, 42.5, Established Condominium Projects, 42.6, New Condominium Projects, 42.7, Other Condominium Projects, or 42.9, Reciprocal Project Reviews.
  • See Guide Section 42.2 (a) for an overview on the sequential process flow of Freddie Mac’s condominium project review and eligibility requirements, which supports an efficient and effective workflow.

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.

Project statusDefinition
Established Condominium Projects

It is an Established Condominium Project if:

  • All units, common elements, amenities, and related facilities are complete and not subject to any additional phasing;
  • 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.
New Condominium Projects

It is a New Condominium Project if:

  • All units, common elements, amenities and related facilities are not complete, or are subject to additional phasing;
  • 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.

Download our Condominium Unit Mortgages and Project Reviews fact sheet and job aid for Determining Condominium Project and Mortgage Eligibility for more details.

Lender Benefits

  • 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, only the following requirements need to be met:

  • The unit must be in an Established Condominium Project.
  • The mortgage must be originated on a spot loan basis.
  • 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.

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 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 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 flexibility to obtain a project review. Acceptable reciprocal reviews include:

  • Fannie Mae Project Eligibility Review Service (PERS) – Final project approval.
  • Fannie Mae Condominium Project Manager (CPM) – Project acceptance certification.
  • Federal Housing Administration (FHA) – approved condominium projects for FHA mortgages, available online at https://entp.hud.gov/idapp/html/condlook.cfm.

Lender Benefits

  • Gain eligibility for more of your mortgages secured by units in detached condominium projects. Detached condominium projects need only to meet the definition of a detached condominium project and the general project eligibility requirements.
  • Reciprocal reviews may provide you more flexibility to capture additional market share.

Get More Information

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 Master Commitment.

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