B4-2.1-02, Waiver of Project Review (07/05/2023)

Fannie Mae does not require a thorough project review for the project types and transactions described in the following table.

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.

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 in Condo Project Manager (CPM) with a status of "Unavailable";

• 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 ProjectsB4-2.1-03, Ineligible Projects);

• priority of common expense assessments (described in  B4-2.1-01, General Information on Project StandardsB4-2.1-01, 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);

• insurance requirements (described in Subpart B7, Insurance, as applicable); and

• there are no unaddressed critical repairs outstanding or projects with evacuation orders (described in B4-2.1-03, Ineligible ProjectsB4-2.1-03, Ineligible Projects) if the loan is a Fannie Mae to Fannie Mae limited cash-out refinance.

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 EligibilityB5-7-01, High LTV Refinance Loan and Borrower Eligibility for the requirements.