Selling Guide

Published December 16, 2020

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What are the different types of projects and project review methods?

Project Review Methods

Fannie Mae purchases or securitizes mortgage loans secured by units in condo, co-op, and PUD projects that meet Fannie Mae's eligibility requirements. To determine whether the project meets these requirements, a number of project review methods are available. Whether a project review method is allowable or required depends on

  • the number of units in the project (two- to -four or more than four);
  • the unit type (attached or detached);
  • the project type (condo, co-op, or PUD);
  • the project status (new or established); and
  • the mortgage transaction.

The characteristics that dictate which method to use are shown in the following table.

Unit and Project Type Project Review Methods
Attached condo unit in a new or newly converted project
  • Full Review (completed with or without using Condo Project Manager (CPM), or
  • Fannie Mae Review through the standard Project Eligibility Review Service (PERS) process
Attached condo unit in an established project Based on the LTV, CLTV, and HCLTV ratios, occupancy, and location (projects in Florida), these projects may be reviewed using a Limited Review.

Projects not meeting the Limited Review criteria must be reviewed using a

  • Full Review (with or without CPM),
  • FHA Project Approval (HUD Review and Approval Process only), or
  • Fannie Mae Review through the streamlined PERS process (for established condo projects)
Unit in a new or established two- to four-unit condo project

Project review is waived, with the exception of some basic requirements that apply.

Detached unit in a new or established condo project Project review is waived, with the exception of some basic requirements that may apply.
Unit in a co-op project Full Review

Note: Lenders must obtain special approval to be eligible to deliver co-op share loans to Fannie Mae secured by ownership interest in a co-op share project. See A2-1-01, Contractual Obligations for Sellers/Servicers, for additional information.

Multi-width manufactured homes in an established condo project Full Review
  • New condo projects consisting of manufactured homes
  • Co-op projects consisting of manufactured homes
  • PUD and condo projects consisting of single-width manufactured homes
  • Newly converted non-gut rehabilitation condo and co-op projects (with attached units) that contain more than four units
  • New or newly converted condo projects consisting of attached units located in Florida
  • Limited or shared equity co-op projects, provided the limited or shared equity provisions are designed to preserve or promote access to affordable housing
Fannie Mae Review through the standard PERS process
Established condo or PUD projects consisting of multi-width manufactured homes that are subject to a community land trust, deed restriction, leasehold estate, or shared equity arrangement Fannie Mae Review through the streamlined PERS process
Unit in a PUD project Project review is waived, with the exception of some basic requirements that apply
Unit in a condo project approved by the FHA FHA Project Approval (see B4-2.2-05, FHA-Approved Condo Review Eligibility for additional details)

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

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