Issue Fannie Mae Freddie Mac FHAPre-SaleRequirement forNew CondoProjects
The presale requirement varies from 51%to 70%, conveyed or under contract,depending on the project approvalreview process used.At least 70% of the total number of units in the project (or all stages, todate) must have been conveyed orbe under contract to purchasers(other than the developer or asuccessor to the developer) who willoccupy the units as primaryresidences or second homes.Waivers permitted.Presale requirement is 30% - but can apply to eachphase of a project. Presale requirement does not applyto existing projects or non-gut rehabilitationconversions.
No limit. No limit. FHA will provide insurance for up to 50% in existingprojects and will grant exceptions above this mark.Exception requests are processed by the jurisdictionalHomeownership Center (HOC).
Limit onCommercialSpace in CondoProjects
20% limit. Fannie Mae will considerwaivers when a lender has submitted aconvincing, risk-based rationale.Same as Fannie. 25% limit, but more flexibility for exceptions to beprovided up to 50%, with those up to 35% processed atlocal level, and higher with significant additionaldocumentation at Philadelphia HOC. Exceptions mayalso be made over 50%, but must be approved by theFHA Commissioner or their designee.
Elimination of Spot LoanApprovalProcess
Not eliminated. Fannie Mae continues toallow Limited Project Reviews onestablished condominiums.Not eliminated. Same as FannieMae.Effective 2/1/2010, FHA no longer offers spot loanapprovals where the project has not been approved.
Not applicable. Not applicable. FHA requires a study that insures adequate funds areavailable for capital expenditures, preservation andmaintenance of amenities. The study can be no morethan 24 months old.