Helping you get condos financed in Florida
Conventional Loans
What is a conventional Loan?
A Conventional loan is a mortgage loan that meets the underwriting criteria set by Fannie Mae or Freddie Mac, both agencies follow the same guidelines. All banks and lenders must warrant to Fannie Mae or Freddie Mac that the condo project meets all criteria set by the two agencies based on the approval method used by the lender.
The approval method used is determined by several factors, however most lenders will only accept the method referred to as Limited-Review for established condos in Florida. A PERS approval is the ONLY method acceptable for new or newly converted condo projects in Florida.
Conventional Condo Approval Methods
Fannie Mae will accept any of the following approval methods.
Click on each one below to learn more.
Limited-Review - Only eligible for established condos.
PERS (Project Eligibility Review Service) - All New/Newly converted condos in Florida must receive a PERS approval.
Full Lender Review - Established projects only.
SAD review (Special Approval Designation) - Established projects only.
CPM Review (Condo Project Manager) - Established projects only.
PEW (Project Eligibility Waiver) - Can be used in conjunction with a CPM review.
Established versus New/Newly Converted Condo
Before we can explain the approval methods, we need to define the two types of condominiums as defined by Fannie Mae.
Established Condominium - An Established Condo project is a project where all of the following conditions have been meet.
90% or more of the units have been conveyed to unit owners.
The project is 100% complete, including all common elements
The project is not subject to additional phasing or annexation.
Control of the homeowners’ association has been turned over to the unit owners.
New/Newly Converted Condominium - Any condominium project that does not satisfy all the requirements listed above, or has been converted within the last 3 years.
The first step in determining whether or not a condo is Fannie Mae warrantable is to determine whether the condo project is established or new?
FloridaHomePath.com, LLC is not a mortgage lender. FLCondoTeam.com is a site for information purposes only. All information provided is based on Fannie Mae condo project requirements. Click here for Fannie Mae resources. Lenders and banks reserve the right to have more restrictive requirements at their sole discretion.
** All loan information is updated frequently. Contact a Mortgage Professional to confirm loan details. All material is subject to change without notice.
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