What makes a condo Fannie Mae approved?
What does “Fannie Mae approved condo” mean? A “Fannie Mae approved condo” means the condo in questions meets or exceeds those requirements, and the condo is eligible for federal financing. As of 2020, the Fannie Mae loan limit for condos is $510,400 — at least, in most parts of the country.
Does Fannie Mae require a condo questionnaire?
Condominium Project Questionnaire This form is optional; however, lenders are encouraged to use and retain the form in the loan file. A substantially similar form may also be used in its place.
What is the owner occupancy requirement for condos Fannie Mae?
Fannie Mae requires that no more than 35% of a condo or co-op project or 35% of the building in which the project is located be commercial space or allocated to mixed-use.
How do you know if a condo is Fannie Mae approved?
Quickly and easily determine if a condo project meets Fannie Mae’s requirements. Fannie Mae’s Condo Project Manager™ (CPM™) is a free, web-based tool that enables lenders to quickly and easily certify a condominium project (or a legal phase of a project). The project must be eligible under the Full Review requirements.
How do you get Fannie Mae approval?
To become a Fannie Mae multifamily lender, you must: Be able to market Fannie Mae mortgage-backed securities to capital markets investors. Pay Fannie Mae’s third-party costs and expenses for due diligence. Enter into our Multifamily Selling and Servicing Agreement.
Which type of condo must have a full review?
The criteria for a full review is that the condominium needs to have 51% or more of its units be an owner occupant. This means it needs to be a warrantable condominium unit. Mortgage lenders do not want to see any more than 15% of the condo homeowners association dues delinquent for more than 30 days.
Can a borrower have two primary residences?
The short answer is that you cannot have two primary residences. You will need to figure out which of your homes will be considered your primary residence and file your taxes accordingly.
Does Fannie Mae allow non warrantable condo?
A non-warrantable is any condo that doesn’t meet all of Fannie Mae or Freddie Mac’s qualified lending requirements. Whether it’s a houseboat or 16% of unit owners are delinquent on their association dues — the specific requirement that’s missing doesn’t matter.
Does Fannie Mae do co ops?
Fannie Mae will purchase co-op share loans provided borrowers occupy the property as a principal residence or second home. Investment properties are prohibited. Fannie Mae does not purchase or securitize co-op share loans that are subject to subordinate financing except for high LTV refinance transactions.
What do you need to know about condo financing?
Types of residential mortgages. First,it’s worth discussing the three types of mortgages that you could get for a condo.
What is a warrantable condominium?
Warrantable Condo. A condominium project with features that lenders view as favorable in terms of their risk exposure on loans secured by individual condo units.
Is a condo warrantable?
Typically, a condo is considered warrantable if: No single entity owns more than 10% of the units in a project, including the developer At least 51% of the units are owner-occupied Fewer than 15% of the units are in arrears with their association dues The homeowners association (HOA) is not named in any lawsuits
What are conventional home loan requirements?
Conventional loans require a minimum credit score of 620 to buy a home. A borrower must have a minimum of 5% down payment to be eligible for a conventional loan. Conventional loans are easier to obtain with a credit score of at least 640 or 660.