As of January 2022, Fannie Mae has updated its condo guidelines in the wake of the condominium collapse in Surfside Florida. Fannie Mae will no longer guarantee mortgages in condo complexes that have levied a special assessment to pay for deferred maintenance that affects a projects structural integrity. The project will remain ineligible until the required repairs have been made and documented.
Coast 2 Coast Funding Group will entertain loans on Fannie Mae ineligible projects on a case by case basis. Our non-warrantable condo program DOES allow for deferred maintenance and special assessments as long as the subject unit’s special assessment is satisfied prior to closing and the severity of the deferred maintenance is reviewed and approved. Fannie Mae will not guarantee mortgages in a project unless the entire projects special assessment has been paid, so many existing approved projects will now be ineligible.