Transactions Eligible for a Waiver of Project Review
Fannie Mae does not require a thorough project review for the project types and transactions described in the following table.
|Project or Transaction Type||Requirements|
|Detached condo unit||A detached condo is defined as any condo unit that is completely detached from other condo units in the project. The unit may share no adjoining walls, ceilings, floors, or other attached architectural elements (such as breezeways or garages) with any neighboring unit. A detached condo unit may be in a project consisting solely of detached units or in a development containing a mixture of attached and detached units. Site condos in which the unit owner owns the detached condo unit and the land upon which the unit is built are a type of detached condo. The waiver of project review applies for new and established projects.|
|Unit in a two- to four-unit condo project||Project review is waived for new and established condo projects that consist of no more than four units.|
|Unit in a PUD project||See B4-2.3-01, Eligibility Requirements for Units in PUD Projects, for the requirements that apply.|
|Fannie Mae to Fannie Mae limited cash-out refinance||Project review is waived for units in condo projects for Fannie Mae-owned loans that are refinanced as a limited cash-out refinance 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 a 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, including all provisions applicable to project in Subpart B7-4, Liability and Fidelity/Crime Insurance Requirements for Project Developments).
Project Review Requirements for High LTV Refinance Loans
Fannie Mae waives the project review requirements for high LTV refinance loans secured by units in a condo, co-op, or PUD project. See B5-7-01, High LTV Refinance Loan and Borrower Eligibility for the requirements.
See B4-2.1-02, Waiver of Project Review for additional information.