Selling Guide

Published December 4, 2019

B4-2.2-01: Limited Review Process (06/05/2018)

This topic contains information on the Limited Review process performed by lenders, including:

Unit and Project Type Eligible for Limited Review

To be eligible for a Limited Review, the unit securing the mortgage must be an attached unit in an established condo project.

Transactions Eligible for a Limited Review

The following table describes the transactions that are eligible for a Limited Review.

Limited Review Eligible Transactions -Attached Units in Established Condo Projects (For Projects Outside of Florida)
Occupancy Type Maximum LTV, CLTV, and HCLTV Ratios
Principal residence 90%
Second home 75%
Investment property 75%

Attached units in established projects located in Florida are subject to more restrictive LTV ratio requirements under the Limited Review process. See B4-2.2-04, Geographic-Specific Condo Project Considerations, for additional information.

Limited Review Eligibility Requirements

In completing a Limited Review, the lender must ensure that the project and subject unit meet the eligibility requirements described in the following table.

Limited Review Eligibility Requirements
The project meets the Requirements Applicable to All Properties in a Condo, Co-op, or PUD Project described in B4-2.1-01, General Information on Project Standards.
The project is not an ineligible project. (See B4-2.1-03, Ineligible Projects).
The project does not consist of manufactured homes.

Note: Manufactured housing projects require a Fannie Mae PERS review or a Full Review.

These requirements apply to both DU loan casefiles and manually-underwritten loans.

If the project and loan transaction are eligible for and meet all of the eligibility requirements of the Limited Review process, the lender is not required to validate that the project also meets the eligibility requirements of another project review type. However, if the LTV, CLTV, or HCLTV ratios exceed the limits above, or in the event the lender becomes aware of a circumstance that would cause the project or transaction to be ineligible under a Limited Review, the lender must use one of the other project review methods to determine project eligibility and the project must meet all of the eligibility requirements of that selected alternate project review type.

Related Announcements

The table below provides references to the Announcements and Release Notes that have been issued that are related to this topic.

Announcements and Release Notes Issue Date
Announcement SEL-2018-05 June 05, 2018
Announcement SEL-2018-01 January 30, 2018
Announcement SEL-2016–08 October 24, 2016
Announcement SEL-2015–08 July 28, 2015
Announcement SEL-2015–06 May 26, 2015
Announcement SEL-2014–13 November 10, 2014
Announcement SEL-2012–07 August 21, 2012
Announcement SEL-2012–06 June 26, 2012
Announcement SEL-2011–05 June 28, 2011
Announcement 08-34 December 16, 2008