Selling Guide

Published June 02, 2021

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How are project types classified?

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 developers 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.
Manufactured home project A project consisting partially or solely of manufactured homes.
Co-op project A project in which a corporation or trust holds title to the property and sells shares of stock representing the value of a single apartment unit to individuals who, in turn, receive a proprietary lease as evidence of title.
Planned unit development (PUD) project A project or subdivision that consists of common property and improvements that are owned and maintained by an HOA for the benefit and use of the individual PUD unit owners. The unit owners in the project have title to a residential property (lot and structure) and an interest in the HOA that owns or manages the common areas and facilities of the PUD.

See B4-2.3-01, Eligibility Requirements for Units in PUD Projects, for additional detail used in determining whether a project is subject to Fannie Mae’s PUD eligibility requirements.

Horizontal Property Regimes

Fannie Mae considers a development to be a condo project any time it is declared or filed as a horizontal property regime in accordance with local statutes. Exception is made, if the local statute provides for the horizontal property regime to be created as a PUD development and the project’s legal documents specifically state that the project is a PUD. Lenders must determine if the subject unit is located in a condo or PUD and use the appropriate mortgage documents and appraisal forms.

For additional information, see B4-2.1-01, General Information on Project Standards.

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