Transactions Eligible for a Waiver of Project Review
The project review is waived for all Fannie Mae-owned loans that are being refinanced as a limited cash-out refinance with with a maximum loan-to-value ratio of 80% (CLTV or HCLTV ratios may be higher). (The waiver is not applicable to units in co-op projects.)
Exception to the waiver policy: If the property is a manufactured home or the project contains any manufactured homes, such property or project is not eligible for a review waiver and must be reviewed based on the applicable manufactured home project review requirement.
Requirements that Apply When the Project Review is Waived
The following requirements apply, in addition to those noted above, when the project review is waived:
- property eligibility requirements (described in Chapter B2-3, Property Eligibility);
- the project is not a condo hotel or motel, houseboat project, or a timeshare or segmented ownership project (described in B4-2.1-03, Ineligible Projects);
- priority of common expense assessments (described in B4-2.1-01, General Information on Project Standards);
- when an appraisal of the property is obtained, it must meet all applicable appraisal requirements (described in Chapter B4-1, Appraisal Requirements); and
- insurance requirements (described in Subpart B7, Insurance, as applicable).
For additional information, see B4-2.1-02, Waiver of Project Review.