We have all been navigating the temporary condominium guidelines Fannie Mae and Freddie Mac implemented back in January of 2022 — specifically those that require condo associations and management companies to disclose additional information about their projects as it relates to existing or imminent structure, safety and soundness issues.
Fortunately, Fannie Mae has come out with a finalization of these rules and some clarity in how lenders should review these projects.
In the new guidelines, every project must be reviewed to ensure it has not been previously deemed “ineligible” by Fannie Mae utilizing a lender-access master database called Condo Product Manager.
Once a lender or Fannie Mae has reviewed and approved all of the required legal, financial and structural documentation, that information is valid for one year from the review date. Approved documentation will then only be revisited if the lender is made aware of anything that would deem it to be ineligible.
Conditions that would deem a project ineligible include:
Safety and soundness issues that will not be corrected prior to a loan closing
Failure to provide any and all necessary documentation to the lender
When you work with Key Mortgage, your loan officer has access to the tools that will help you and your clients know if the condo has known issues that could affect financing, which is just as important to your sellers as your buyers — so who provides the financing does matter. This is just another value-add that you can share with your clients.
Reach out to a Key Mortgage loan officer today to learn more about how you can be prepared to work with condominium buyers and sellers. Don’t have a Key Mortgage loan officer? Simply reply to this email and we will get you connected with one of our loan officers today.