In addition to reforming condo underwriting guidelines to allow limited project review classification on 2-4 unit condo associations, Fannie Mae has also eased the requirements in other areas as well.

Commercial Occupancy:

Maximum commercial influence in a condo association was 20% and now it is 25%.  This means that a mix-use condo project can have up to 25% of the square footage dedicated to commercial use.

Owners who own more than one unit:

In condo association with 20 units or less, one owner can now own 2 units.  In the past, the rule read that one unit owner couldn’t own more than 10% of the units. This meant that in associations with fewer than 20 units, if a single entity owned two of the condos the property was ineligible for conventional financing.

Condo fee delinquency:

Up until now, when examining the association financials no more than 15% of the unit owners could be past due on condo fees or assessments by 30 days.  The time frame has been increased to 60 days past due versus 30 days.

Pre-Sale Requirements:

New construction pre-sale requirements have been reduced from 70% of the units to 50% of the units.

AND more GREAT News!!!

The high-balance loan limit has gone UP in many counties across the country!