Fannie Mae condo project review checks whether a condominium project meets the standards for an eligible mortgage. The lender reviews the association and building alongside the borrower and individual unit. Bennett Capital Partners Mortgage Brokers helps Florida buyers organize project information and compare condo financing options before unresolved conditions disrupt a purchase.
Key Takeaways
- Start with the review path. Use current project standards before ordering documents.
- Retired rules are not options. New Fannie Mae applications no longer use Limited Review.
- Track conditions separately. Project acceptance does not approve the borrower or final loan.
- Verify current records. Insurance, repairs, assessments, and legal changes can affect eligibility.
For new applications, use the current rules: Fannie Mae retired Limited Review for applications dated August 3, 2026 or later. The former blanket PERS requirement for new attached Florida condo projects was retired in March 2026. Full Review and other applicable project requirements still apply.
This guide follows the documents, lender review, and decision process. For a broader explanation of ownership, reserves, insurance, and other eligibility issues, see our Fannie Mae condo guidelines guide.
The Importance of Fannie Mae's Condo Project Review Process
Project review determines whether a lender can deliver a loan secured by the condo to Fannie Mae under the applicable requirements. It is separate from the buyer's credit and income review. A strong borrower can still encounter a project problem that prevents the proposed loan from closing.
For buyers, the practical benefit is identifying financing obstacles early. For associations and developers, complete records help lenders evaluate the project. The lender remains responsible for reviewing the relevant information; a system status does not remove that responsibility.
The review considers risks such as inadequate insurance, financial weakness, legal issues, and critical repairs. It does not guarantee that the unit is a sound investment, replace a buyer's inspection, or promise future property value. Evaluate ownership costs and building condition separately.
Start the project review when you identify a serious purchase candidate. Ask which documents are available, who will provide them, and which conditions could affect the contract timeline. A previous closing in the same building does not establish current eligibility.
Use the current primary resources when assembling the review package:
- Fannie Mae condo, co-op, and PUD project eligibility resources
- 2026 changes, including retirement of Limited Review
- Current Full Review process
- Fannie Mae Full Condo Questionnaire
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Full Review and the Retirement of Limited Review
The project classification and current guide determine the review path. Full Review, an applicable project-review waiver, and Fannie Mae project approval are different paths. Older descriptions of Limited Review should not be used to structure a new application after its retirement date.
Fannie Mae Full Condo Review
For Full Review, the lender obtains the project records, evaluates the requirements, and documents its decision. It must use Condo Project Manager, or CPM, except for projects consisting of manufactured homes. An incomplete questionnaire or missing policy can delay the decision.
The lender evaluates these areas:
- Project classification, legal phase, and completion status
- Presales where applicable and any occupancy restrictions
- Assessment delinquencies and special assessments
- Master insurance policies and required unit-owner coverage
- HOA budget, reserve funding, inspections, and repairs
Full Review can apply to new and established projects. New or converted projects require additional completion, presale, legal, and other documentation. The lender can estimate timing after reviewing the file and identifying missing records.
Former Limited Review and Today's Alternatives
Limited Review was a streamlined option for certain established-project transactions. It is retired for Fannie Mae applications dated August 3, 2026 or later. A large down payment does not revive that review method. For a new application, confirm:
- The current project-review method for the transaction
- The supporting records and questionnaire required
- Any project status or loan restrictions
- Separate borrower, unit, insurance, and closing conditions
A lender may determine that a project-review waiver or another permitted path applies to the specific transaction. That is different from the retired Limited Review process. Even when a review waiver applies, the lender must satisfy the remaining applicable property, insurance, and loan requirements.
Ask the lender to state the current review method in writing. This avoids relying on an outdated seller description or on how another buyer financed a unit in an earlier year.
"After 20 years in the mortgage industry, condo project review and complex condo financing is where we excel. When realtors have a challenging deal or borrowers get turned down elsewhere, they call us. We take pride in our expertise with Florida's PERS requirements, warrantable versus non-warrantable properties, and the intricate details that make these deals work. Whether it's a new development, complicated HOA situation, or non-warrantable property requiring portfolio lending, we have the knowledge and lender relationships to find solutions. That's why we're the broker of choice when others say 'no.'"
This original commentary predates the March 2026 retirement of Florida’s blanket PERS requirement. The current project-specific rules are explained below.
Discuss the property address, intended occupancy, purchase terms, and available documents with Bennett Capital Partners before deciding which financing path to pursue.
Fannie Mae New Condo Project Guidelines
New and newly converted condo projects have additional requirements. The lender examines completion, occupancy readiness, presales, legal documents, and other standards for the project or subject legal phase. The new-project guide controls the details.
Fannie Mae retired the former Florida-specific blanket PERS requirement on March 18, 2026. A qualifying new attached Florida condo project may use Full Review. PERS remains required for specific categories, including newly converted non-gut rehabilitation projects with attached units and more than ten units, and is optional for other categories. Check the current PERS requirements for the project type.
A developer's anticipated completion date is not the same as a lender's project decision. Before setting the closing schedule, confirm which documents, certificates, presales, or legal conditions are still outstanding and who is responsible for resolving them.
Use this table to organize the new-project questions, then obtain the lender's document requirements for the actual transaction.
The Step-by-Step Condo Project Review Process
A useful review process moves from project classification to complete documents, a lender decision, and final verification. The exact requirements vary by project and loan. Keep the project review and the borrower's underwriting conditions on separate checklists.
At the start, identify the property address, unit number, total units, project or phase name, intended occupancy, and proposed loan program. Ask the association or management company who can answer the questionnaire and provide the records.
Determine the review path
The lender classifies the project and checks the applicable eligibility requirements and available project information. It identifies Full Review, required PERS, or another permitted path. Do not order a retired Limited Review package for a new application.
Assemble the questionnaire and supporting records
Obtain the completed condo questionnaire, approved budget, financial statements, reserve information, assessment aging, governing documents, insurance policies, and relevant repair or litigation records. Track missing items and the person responsible for each.
Resolve the lender's questions
The review team compares the documents with the applicable rules. For example, it may need an insurance endorsement, an explanation of a special assessment, or evidence that critical repairs are complete. A questionnaire answer alone may not resolve a conflicting inspection report.
Document the decision and remaining conditions
Ask whether the project is certified, approved subject to conditions, or ineligible for the proposed execution. In CPM, Conditional Approval is different from Approved by Fannie Mae. Project acceptance does not approve the borrower, appraisal, title, or final loan.
Verify the file through closing
The lender checks the applicable approval validity and outstanding conditions. Material new information can affect eligibility, including insurance changes, significant repairs, or litigation. Keep the review team informed instead of relying solely on an earlier status.
Timing depends on document availability, lender workload, and the issues found. Ask for an estimate after the initial package is reviewed and update it when new conditions arise. A rate lock, contract deadline, and project review may run on different schedules.
Insurance Requirements and the Final Condo Review
The lender must confirm that the project meets applicable insurance requirements even when CPM shows Approved by Fannie Mae. Project approval does not replace review of the master policy, endorsements, deductibles, and any required unit-owner coverage. Resolve insurance questions before treating a condo approval as a complete loan approval.
Provide the master policy and endorsements, renewal dates, deductible information, and any required unit-owner policy. Ask the lender to identify missing coverage or documentation while there is still time to resolve it before closing.
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Navigating Condo Financing: Warrantable VS Non-Warrantable Condos
Warrantability describes whether a condo project meets the relevant agency standards for the proposed mortgage. It is useful shorthand, but buyers need the actual lender decision and conditions. The label alone does not establish a rate, down payment, or approval.
A warrantable condo can support eligible agency financing when the borrower, unit, and transaction also qualify. The lender still evaluates credit, income or other permitted qualification methods, assets, occupancy, appraisal, title, and applicable loan limits.
A non-warrantable condo has an issue that prevents the proposed agency execution. That issue could involve project operations, ownership concentration, insurance, finances, or other eligibility requirements. The precise reason matters because alternative lenders accept different risks.
Some portfolio or non-QM lenders consider selected non-warrantable condos. Their pricing, leverage, reserves, documentation, and occupancy terms vary. Compare a written proposal for the actual building rather than assuming every non-warrantable condo needs the same down payment or rate premium.
Lenders use CPM and supporting records to check project status, approval validity, and loan restrictions. A CPM Conditional Approval means outstanding PERS conditions must be satisfied before the project can receive Approved by Fannie Mae status. The lender must still review the borrower, unit, and insurance.
An HOA, property manager, or authorized adviser can also use Fannie Mae’s Condo Status Finder. A “No Findings” result means Fannie Mae has not currently identified the project as ineligible; it does not mean Fannie Mae reviewed or approved it. Buyers should ask their lender to confirm eligibility for the proposed mortgage.
Project status can change when new information affects eligibility. An earlier mortgage closing does not prove that the association's current insurance, finances, or building condition meet the requirements. Request current records and report material changes to the lender.
If the project is non-warrantable, first identify the reason. Then ask whether a lender accepts that condition, what documentation it requires, and how the loan terms compare. Some issues may need to be resolved before any suitable financing is available.
Before proceeding, compare the full ownership budget: loan payment, taxes, insurance, regular HOA dues, assessments, and a cash reserve for unexpected costs. Financing availability is one part of deciding whether the condo fits your finances.
Conclusion
Begin Fannie Mae condo project review early, use the current review path, and request the association's supporting records. Keep a written list of missing items and conditions so the buyer, lender, agent, and association understand what remains.
Project review can identify financing and ownership risks, but it does not replace your inspection, legal review of purchase documents, or assessment of affordability. Review the building's costs and condition alongside the mortgage terms.
Bennett Capital Partners can help Florida buyers organize the initial information and compare lender options. Bring the condo address, intended use, price, down payment, and available HOA documents to the first conversation.
Frequently Asked Questions
What is a condo project review and why is it important?
A condo project review evaluates whether the association and development meet the applicable mortgage project standards. For Fannie Mae financing, the lender documents the required review or approval path. It is separate from the buyer's qualification and the unit's appraisal.
How long does the Fannie Mae condo project review process take?
There is no universal turnaround time. The schedule depends on the review path, complete association documents, lender workload, and unresolved insurance, repair, financial, or legal issues. Ask for a file-specific estimate after the lender reviews the initial package.
What's the difference between FNMA condo review and Fannie Mae condo project review?
FNMA stands for Federal National Mortgage Association, commonly called Fannie Mae. These terms refer to the same organization. The lender performs the applicable project review, and some projects are submitted to Fannie Mae through PERS.
What are the main reasons condo projects get rejected during review?
Problems can include unacceptable insurance, critical repairs, inadequate reserve funding, excessive assessment delinquencies, ineligible project operations, or disqualifying legal or ownership issues. The lender should identify the specific requirement and whether the issue can be resolved.
Can a condo project's warrantable status change after approval?
Yes. Material changes or newly discovered information can affect project eligibility. The lender must satisfy the applicable requirements and approval validity for the transaction; a previous closing does not establish that the project remains eligible.
What's the difference between full review and limited review for condos?
Full Review evaluates the applicable project requirements and documents. Limited Review was a streamlined path for certain established projects, but Fannie Mae retired it for applications dated August 3, 2026 or later. New applications must use a currently permitted path.
Do all states have the same condo project review requirements?
Fannie Mae applies national project standards along with applicable legal and property requirements. The former blanket PERS requirement for new attached Florida condo projects was retired in March 2026. Certain project categories still require PERS regardless of that change.
What financing options are available for non-warrantable condos?
Some portfolio and non-QM lenders consider selected non-warrantable condo issues. Terms vary by lender, property, borrower, and occupancy. There is no universal rate premium, down payment, or guarantee that an alternative program will accept the building.
How can I check if a condo project is warrantable?
Ask your lender to review the current project records, applicable status, outstanding conditions, and loan restrictions. Your HOA or property manager can use Fannie Mae’s Condo Status Finder, but “No Findings” is not an approval. A seller’s description or a previous closing does not prove current eligibility.
What documents are needed for condo project review?
The package commonly includes a condo questionnaire, approved budget, financial statements, reserve information, insurance policies, governing documents, and assessment aging reports. Inspection, repair, special-assessment, litigation, or new-project records may also be needed. The lender specifies the complete file requirements.
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