Fannie Mae Selling Guide B4-2.1-02 — Waiver of Project Review

Fannie Mae Selling Guide B4-2.1-02 — Waiver of Project Review

B4-2.1-02, Waiver of Project Review (07/02/2025) Introduction This topic contains information on the waiver of project reviews, including: Transactions Eligible for a Waiver of Project Review Published May 6, 2026 633 Requirements that Apply When the Project Review is Waived Project Review Requirements for High LTV Refinance Loans Transactions Eligible for a Waiver of Project Review Fannie Mae does not require a thorough project review for the project types and transactions described in the following table. Project or Transaction Type Requirements Detached condo unit A detached condo is defined as any condo unit that is completely detached from other condo units in the project. The unit may share no adjoining walls, ceilings, floors, or other attached architectural elements (such as breezeways or garages) with any neighboring unit. A detached condo unit may be in a project consisting solely of detached units or in a development containing a mixture of attached and detached units. Site condos in which the unit owner owns the detached condo unit and the land upon which the unit is built are a type of detached condo. The waiver of project review applies for new and established projects. Unit in a two- to four-unit condo project Project review is waived for new and established condo projects that consist of no more than four units. Unit in a PUD project Project review is waived for units in new and established PUD projects, except for PUD projects consisting of manufactured homes subject to a community land trust, deed restriction, ground lease, or shared equity arrangement. See B4-2.3-01, Eligibility Requirements for Units in PUD Projects, for the requirements that apply. Fannie Mae to Fannie Mae limited cash-out refinance Project review is waived for units in condo projects for Fannie Mae-owned loans that are refinanced as a limited cash-out refinance with a maximum loan-to-value ratio of 80% (CLTV or HCLTV ratios may be higher). (The waiver is not applicable to units in co-op projects.) Published May 6, 2026 634 Exception to the waiver policy: Other than the PUD requirements above, if the property is a manufactured home or the project contains any manufactured homes, such property or project is not eligible for a review waiver and must be reviewed based on the applicable manufactured home project review requirement. Requirements that Apply When the Project Review is Waived The following requirements apply, in addition to those noted above, when a project review is waived: property eligibility requirements (described in Chapter B2-3, Property Eligibility); the project is not in Condo Project Manager (CPM) with a status of "Unavailable"; the project is not a condo hotel or motel, houseboat project, or a timeshare or segmented ownership project (described in B4-2.1-03, Ineligible Projects); priority of common expense assessments (described in B4-2.1-01, General Information on Project Standards); when an appraisal of the property is obtained, it must meet all applicable appraisal requirements (described in Chapter B4-1, Appraisal Requirements); insurance requirements (described in Subpart B7, Insurance, as applicable); there are no unaddressed critical repairs outstanding or projects with evacuation orders (described in B4-2.1-03, Ineligible Projects) if the loan is a Fannie Mae to Fannie Mae limited cash-out refinance; and the project is not terminating and is not involved in insolvency proceedings (described in B4-2.1-03, Ineligible Projects). Project Review Requirements for High LTV Refinance Loans Fannie Mae waives the project review requirements for high LTV refinance loans secured by units in a condo, co- op, or PUD project. See B5-7-01, High LTV Refinance Loan and Borrower Eligibility for the requirements. Recent Related Announcements The table below provides references to recently issued Announcements that are related to this topic. Announcements Issue Date Announcement SEL-2025-05 July 02, 2025 Announcement SEL-2024-07 November 06, 2024 Announcement SEL-2023-06 July 05, 2023 Announcement SEL-2019-07 August 07, 2019 Published May 6, 2026 635

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