TIP OF THE DAY- FANNIE CONDO PROJECT TYPES

TIP OF THE DAY- FANNIE CONDO PROJECT TYPES

Project Types

The scope of Fannie Mae’s requirements and the specific eligibility criteria to be met are dependent upon various project types and/or loan level characteristics. The characteristics that define each project type are described in the following table.

Project Type

Identification Criteria

Established condo project

A project for which all of the following are true:

  • at least 90% of the total units in the project have been conveyed to unit purchasers;

  • the project is 100% complete, including all units and common elements;

  • the project is not subject to additional phasing or annexation; and

  • control of the HOA has been turned over to the unit owners.

A project may also be treated as an established project with less than 90% of the units sold to unit purchasers, provided the deficit is the result of the developer holding back units for rent. The following requirements must be met:

  • construction is 100% complete;

  • the project is not subject to any additional phasing or annexation, and the HOA has been turned over to the unit owners;

  • the developer’s share of the units held back for rental is no more than 20% of the project’s total units;

  • HOA fees are paid current in developer-held units; and

  • there are no active or pending special assessments in the project.

New condo project

A project for which one or more of the following is true:

  • fewer than 90% of the total units in the project have been conveyed to unit purchasers (or 80% if it meets the exception noted in the row above);

  • the project is not fully completed, such as proposed construction, new construction, or the proposed or incomplete conversion of an existing building to a condo;

  • the project is newly converted;

  • the project is subject to additional phasing or annexation; or

  • HOA still in the developer’s control.

Detached condo project

A project comprised solely of detached units or that comprises a mixture of attached and detached units and may be a new or established project.

Two- to four-unit condo project

A project comprised of two, three, or four residential units in which each unit is evidenced by its own title and deed. A two- to four-unit condo project may be either a new or established project and may be comprised of attached and/or detached units.

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