Fannie Mae accepts delivery of FHA mortgage loans in FHA-approved condo projects that appear on the FHA-approved condo list. For conventional mortgage loans, the condo project must meet Fannie Mae's project eligibility requirements. FHA condo project approval alone is not acceptable for conventional mortgage loans.
Lenders must maintain printed copies of the FHA approval documentation in the loan file.
Lenders must ensure that
the FHA standard conditions have been met for presale, occupancy status, and completion;
any additional conditions noted by FHA have been met;
the project is not an ineligible project as defined in B4-2.1-02, Ineligible Projects;
the project is covered by the required insurance as set forth in Subpart B7–4, Additional Project Insurance; and
the project is not comprised of manufactured homes.
When lenders deliver mortgage loans secured by condo units in an FHA-approved project, lenders must retain the documentation as set forth in Document Retention for Project Eligibility in B4-2.1-01, General Information on Project Standards.
When delivering FHA mortgage loans secured by individual units in FHA-approved condo projects, the lender must report the Project Type Code U for an FHA-approved project as part of the delivery data.
The table below provides references to the Announcements that have been issued that are related to this topic.