Freddie Mac Single-Family Seller/Servicer Guide 5701.2 — Condominium Project review and general

Freddie Mac Single-Family Seller/Servicer Guide 5701.2 — Condominium Project review and general

Condominium Project eligibility requirements (08/03/26) Effective for Mortgages with Application Received Dates on or after August 3, 2026. The Seller must determine compliance with Freddie Mac’s project review and eligibility requirements in this section. This section contains: ■ Condominium Project review requirements ■ General Condominium Project eligibility requirements ■ Freddie Mac right to review Condominium Projects ■ Overview of Condominium Project review and eligibility requirements and project review types (a) Condominium Project review requirements Except for Condominium Unit Mortgages delivered in accordance with the requirements in Section 5701.7 relating to Exempt from Review or Section 5701.10 relating to Condominium Projects with a Project Certified status Project Assessment Request (PAR) finding, the Seller must ensure that: 1. The Condominium Unit Mortgage, the Condominium Unit and the Condominium Project comply with project eligibility requirements for one of the following project review types: ■ Established Condominium Projects (See Section 5701.5) ■ New Condominium Projects (See Section 5701.6) ■ Reciprocal project reviews (See Section 5701.9) 2. The project is not an ineligible project (See Section 5701.3) Note: If the Condominium Unit Mortgage to be delivered complies with the reciprocal project review requirements in Section 5701.9(a), then compliance with Section 5701.3 is not required. 3. The Seller reviews and determines that a Condominium Project complies with Freddie Mac’s requirements as follows: Condominium Project review expiration Project review type Expiration of project review Established Condominium Projects (Section 5701.5) Within one year prior to the Note Date New Condominium Projects (Section 5701.6) Within 180 days prior to the Note Date If the Condominium Project does not meet Freddie Mac’s project eligibility requirements on the Note Date, the Seller may deliver the Condominium Unit Mortgage at the time the Condominium Project complies with all of the project eligibility requirements as long as all other applicable requirements have been met. 4. The Condominium Project remains in full compliance with the applicable State law, the requirements of the jurisdiction in which the Condominium Project is located, and with all other applicable laws and regulations governing the Condominium Project (b) General Condominium Project eligibility requirements The Seller must review and determine compliance with the following requirements: 1. The project must have insurance that complies with the applicable requirements of 2. The Condominium Unit must be covered by a title insurance policy that complies with requirements of Chapter 4702 3. If a Condominium Project is on a leasehold estate, the lease must comply with the requirements of Chapter 5704 4. The Seller must deliver a Condominium Unit Mortgage no later than 120 days after the Note Date. If the Condominium Unit Mortgage is not delivered within 120 days after the Note Date, the Seller must update the review and determination of the Condominium Project eligibility. 5. The Seller must have policies and procedures in place, and must take appropriate steps to ensure that the Condominium Unit, the Condominium Unit Mortgage and the Condominium Project comply with applicable requirements 6. The Seller must retain all documentation related to the review of the Condominium Project. Upon request, the Seller must provide the project information and documentation to Freddie Mac. 7. The Seller must not deliver a Mortgage secured by a Condominium Unit in a Condominium Project with a Not Eligible status as provided in Section 5701.10(d)(i) (c) Freddie Mac right to review Condominium Projects Freddie Mac reserves the right to conduct its own review of the Condominium Project for Condominium Unit Mortgages delivered to Freddie Mac. (d) Overview of Condominium Project review and eligibility requirements and project review types Below is a table illustrating an overview of our Condominium Project review and eligibility requirements and project review types: Condominium Project review and eligibility requirements overview Seller must determine compliance with Project review requirements in Section 5701.2 (a) General project eligibility requirements in Section 5701.2(b) Ineligible projects Section 5701.3 Freddie Mac project review types Established Condominium Projects Section 5701.5 X X X New Condominium Projects Section 5701.6 X X X Reciprocal project reviews – Fannie Mae-approved and certified projects Section 5701.9(a) X Reciprocal project reviews – FHA-Approved Project review for condominiums Section 5701.9(b) X X If delivered in accordance with the requirements in Section 5701.10 or 5701.7: Condominium Projects with a Project Certified status Section 5701.10 X 2- to 4-Unit Condominium Projects X See Note 1 5- to 10-Unit Condominium Projects not part of a Master Association X See Note 1 Detached Condominium Units X See Note 1 Freddie Mac-owned “no cashout” refinance Condominium Unit Mortgage X See Notes 1 & 2 Refi Possible® Mortgage X See Notes 1 & 2 1Condominium Project must not be a Condominium Hotel or similar type of transient housing, houseboat project, timeshare project or project with segmented ownership or a project that is terminating or involved in insolvency proceedings. (See Section 5701.3.) The Condominium Project must not include Manufactured Homes, unless the Condominium Unit Mortgage is a Refi Possible Mortgage. 2For Mortgages secured by units in attached Condominium Projects with 11 or more units, the Condominium Project must not be in need of Critical Repairs or have an evacuation order. (See Sections 5701.3(n) and 5701.3(o) for details.)

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