source:
  type: guide
  id: fnma-sel-b4-2.1-01
  authority: Fannie Mae Selling Guide B4-2.1-01 — General Information on Project Standards
  description: Fannie Mae Selling Guide B4-2.1-01 — General Information on Project
    Standards.
  coverage_tier: operative
obligations:
- id: fnma-sel-b4-2.1-01-full
  canonical_id: fnma-sel-b4-2.1-01-full
  section: Fannie Mae Selling Guide B4-2.1-01 — General Information on Project Standards
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide B4-2.1-01 — General Information on Project
      Standards
    source_class: fnma-guide
    source_url: https://singlefamily.fanniemae.com/media/document/pdf/selling-guide
    snapshot_id: 5f7b8b79da595d76
    fetched_at: '2026-05-25T14:09:57Z'
    content_hash: sha256:98cf85a02861bbe84914a0e339b327c8fc131869a8a573882007bbeea60c5701
    paragraph_quote: 'B4-2.1-01, General Information on Project Standards (05/06/2026)
      Introduction This topic contains general information on Fannie Mae’s project
      standards, including: Fannie Mae’s Project Risk Overview Project Documentation
      Condominium Project Questionnaire Project Types Project Review Methods Waiver
      of Project Review Requirements Applicable to All Properties in a Condo, Co-op,
      or PUD Project Priority of Common Expense Assessments Delivery Requirements
      Expiration for Project Reviews Uniform Appraisal Dataset (UAD) 3.6 Policy Fannie
      Mae’s Project Risk Overview The quality of mortgages secured by units in condo,
      co-op, and planned unit development (PUD) projects can be inﬂuenced by certain
      characteristics of the project or by the project as a whole. Before delivering
      a loan secured by an individual unit in a project, the lender must determine
      that the project meets Fannie Mae''s eligibility requirements. Project eligibility
      risk is a risk that is distinct from the credit risk presented by individual
      borrowers. Units located in a project present risks that are also distinct from
      the risks associated with properties that are not part of a homeowners’ association
      (HOA) or project. These risks include the following: the ﬁnancial stability
      and viability of the project; the condition and marketability of the project;
      limitations on the unit owner’s ability to control the decision-making for the
      project, occupy the unit, or utilize the project’s amenities and common elements;
      dissolution of the project and the unit owner’s resulting rights and responsibilities;
      project-level litigation; project-level misrepresentation and fraud; the inability
      to cure a mortgage default due to restrictions in the project documents such
      as, but not limited to, right of ﬁrst refusal provisions; and insurance coverage
      that is inadequate to protect the project from unexpected losses. Project eligibility
      and ﬁnancial strength are key drivers of credit performance on individual unit
      mortgages and critical to the long-term success of the project. Fannie Mae’s
      project eligibility and underwriting requirements seek to mitigate project level
      risks and to ensure that projects are demonstrably well-managed. Lenders that
      sell mortgage loans secured by units in a condo, co-op, or PUD project to Fannie
      Mae are expected to have staﬀ that are knowledgeable about and qualiﬁed to evaluate
      the speciﬁc risks presented by these types of projects. The project review is
      in addition to the review the lender completes for underwriting the borrower,
      Published May 6, 2026 623 the transaction terms, and the individual unit appraisal.
      Fannie Mae’s project standards requirements are intended to address common project
      types across a broad geographic range. If a lender determines that a project
      does not meet all of Fannie Mae’s project eligibility criteria, but feels that
      the project has merit and warrants additional consideration, the lender may
      request an exception (see B4-2.2-07, Projects with Special Considerations, for
      additional information). Project Documentation The documentation needed to complete
      a project review may diﬀer depending on the project and review type. Lenders
      are responsible for determining the documentation needed to ensure that the
      project meets all of Fannie Mae’s eligibility requirements. Project documentation
      may include, but is not limited to, the following: legal and recorded documents
      including the covenants, conditions and restrictions, declaration of condominium,
      or other similar documents that establish the legal structure of the project;
      project budgets, ﬁnancial statements, and reserve studies; project construction
      plans; architects’ or engineers’ reports; completion reports; project marketing
      plans; environmental hazard reports; attorney opinions; appraisal reports; evidence
      of insurance policies and related documentation; and condominium project questionnaires.
      Sources for project information include, but are not limited to, appraisers,
      HOAs, co-op corporations, management companies, real estate agents, insurance
      professionals, and project developers. Lenders are responsible for the accuracy
      of any information obtained from these sources. Document Retention Lenders must
      retain all of the project documentation needed to demonstrate that the project
      meets Fannie Mae’s eligibility requirements, including any documentation the
      lender relied upon to enter information into CPM. This documentation must be
      retained, and made available upon request, as long as lenders originate mortgages
      from the project, and until all mortgages sold to Fannie Mae have been liquidated.
      Condominium Project Questionnaire The Condominium Project Questionnaire (Form
      1076) helps lenders collect data to determine condo project eligibility. This
      form is optional; however, lenders are encouraged to use and retain the form
      in the loan ﬁle. A substantially similar form may also be used in its place.
      Project Types The scope of Fannie Mae’s requirements and the speciﬁc eligibility
      criteria to be met are dependent upon various project types and/or loan level
      characteristics. The characteristics that deﬁne each project type are Published
      May 6, 2026 624 described in the following table. Project Type Identiﬁcation
      Criteria Established condo project A project for which all of the following
      are true: • at least 90% of the total units in the project have been conveyed
      to unit purchasers; • the project is 100% complete, including all units and
      common elements; • the project is not subject to additional phasing or annexation;
      and • control of the HOA has been turned over to the unit owners. A project
      may also be treated as an established project with less than 90% of the units
      sold to unit purchasers, provided the deﬁcit is the result of the developer
      holding back units for rent. The following requirements must be met: • construction
      is 100% complete; • the project is not subject to any additional phasing or
      annexation, and the HOA has been turned over to the unit owners; • the developer’s
      share of the units held back for rental is no more than 20% of the project’s
      total units; • HOA fees are paid current in developer-held units; and • there
      are no active or pending special assessments in the project. New condo project
      A project for which one or more of the following is true: • fewer than 90% of
      the total units in the project have been conveyed to unit purchasers (or 80%
      if it meets the exception noted in the row above); • the project is not fully
      completed, such as proposed construction, new construction, or the proposed
      or incomplete conversion of an existing building to a condo; • the project is
      newly converted; • the project is subject to additional phasing or annexation;
      or • HOA still in the developer’s control. Detached condo project A project
      comprised solely of detached units or that comprises a mixture of attached and
      detached units and may be a new or established project. Two- to four-unit condo
      project A project comprised of two, three, or four residential units in which
      each unit is evidenced by its own title and deed. A two- to four-unit condo
      project may be either a new or established project and may be comprised of attached
      and/or detached units. Published May 6, 2026 625 Project Type Identiﬁcation
      Criteria Manufactured home project A project consisting partially or solely
      of manufactured homes. Co-op project A project in which a corporation or trust
      holds title to the property and sells shares of stock representing the value
      of a single apartment unit to individuals who, in turn, receive a proprietary
      lease as evidence of title. Note: A condop project is a type of co-op project
      that operates inside a condo development. See B4-2.3-02, Co-op Project Eligibility,
      for additional information on condop projects. Planned unit development (PUD)
      project A project or subdivision that consists of common property and improvements
      that are owned and maintained by an HOA for the beneﬁt and use of the individual
      PUD unit owners. The unit owners in the project have title to a residential
      property (lot and structure) and an interest in the HOA that owns or manages
      the common area and facilities of the PUD. See B4-2.3-01, Eligibility Requirements
      for Units in PUD Projects, for additional detail used in determining whether
      a project is new or established and subject to Fannie Mae’s PUD eligibility
      requirements. Horizontal Property Regimes Fannie Mae considers a development
      to be a condo project any time it is declared or ﬁled as a horizontal property
      regime in accordance with local statutes. Exception is made, if the local statute
      provides for the horizontal property regime to be created as a PUD development
      and the project’s legal documents speciﬁcally state that the project is a PUD.
      Lenders must determine if the subject unit is located in a condo or PUD and
      use the appropriate mortgage documents and appraisal forms. Project Review Methods
      Fannie Mae purchases or securitizes mortgage loans secured by units in condo,
      co-op, and PUD projects that meet Fannie Mae''s eligibility requirements. To
      determine whether the project meets these requirements, a number of project
      review methods are available. Whether a project review method is allowable or
      required depends on the number of units in the project (two- to four- or more
      than four); the unit type (attached or detached); the project type (condo, co-op,
      or PUD); the project status (new or established); and Published May 6, 2026
      626 the mortgage transaction. The characteristics that dictate which method
      to use are shown in the following table. Unit and Project Type Project Review
      Methods Attached condo unit in a new or newly converted project • Full Review
      completed with Condo Project Manager (CPM), or • Fannie Mae Review through the
      standard Project Eligibility Review Service (PERS) process Attached condo unit
      in an established project Based on the LTV, CLTV, and HCLTV ratios, occupancy,
      and location (projects in Florida), these projects may be reviewed using a Limited
      Review. Projects not meeting the Limited Review criteria must be reviewed using
      a • Full Review (with CPM), • FHA Project Approval (HUD Review and Approval
      Process only), or • Fannie Mae Review through the streamlined PERS process (for
      established condo projects) Unit in a new or established two- to four-unit condo
      project Project review is waived, with the exception of some basic requirements
      that apply. Detached unit in a new or established condo project Project review
      is waived, with the exception of some basic requirements that may apply. Unit
      in a co-op project • Full Review • Fannie Mae Review through the standard PERS
      process Note: Lenders must obtain special approval to be eligible to deliver
      co-op share loans to Fannie Mae secured by ownership interest in a co-op share
      project. See A2-1-01, Contractual Obligations for Sellers/Servicers, for additional
      information. Established condo project consisting solely of multi-width manufactured
      homes not subject to a community land trust, deed restriction, ground lease,
      or shared equity arrangement Full Review (without CPM) Published May 6, 2026
      627 Unit and Project Type Project Review Methods • New condo project consisting
      of manufactured homes, (including those subject to a community land trust, deed
      restriction, ground lease, or shared equity arrangement) • New PUD project consisting
      of manufactured homes subject to a community land trust, deed restriction, ground
      lease, or shared equity arrangement • Newly converted non-gut rehabilitation
      condo and co-op projects (with attached units) that contain more than four units
      • New or newly converted condo project consisting of attached units located
      in Florida • Limited or shared equity co-op projects, provided the limited or
      shared equity provisions are designed to preserve or promote access to aﬀordable
      housing Fannie Mae Review through the standard PERS process • Established condo
      project consisting of single-width manufactured homes • Established condo or
      established PUD project consisting of manufactured homes subject to a community
      land trust, deed restriction, ground lease, or shared equity arrangement Fannie
      Mae Review through the streamlined PERS process Unit in a PUD project Project
      review is waived, with the exception of some basic requirements that apply Unit
      in a condo project approved by the FHA FHA Project Approval (see B4-2.2-05,
      FHA-Approved Condo Review Eligibility for additional details) Note: Unless speciﬁcally
      noted in the above table, all references to manufactured homes may be single-width,
      multi-width, or a combination of both. Waiver of Project Review Fannie Mae does
      not require a thorough project review for several types of projects or loan
      transactions, Published May 6, 2026 628 including: detached condo units; units
      in a two- to four-unit condo project; units in a PUD project, except for PUD
      projects consisting of single-width and/or multi-width manufactured homes subject
      to a community land trust, deed restriction, ground lease, or shared equity
      arrangement; Fannie Mae to Fannie Mae limited cash-out reﬁnances with LTV ratios
      < 80%; and high LTV reﬁnance loans. See B4-2.1-02, Waiver of Project Review
      for additional information and for the requirements that apply when a project
      review is waived. Requirements Applicable to All Properties in a Condo, Co-op,
      or PUD Project All mortgages secured by units in condo, co-op, or PUD projects
      must comply with the following: requirements speciﬁc to the project review method
      used to determine that project’s eligibility; property eligibility requirements
      (described in Chapter B2-3, Property Eligibility); priority of common expense
      assessments (described below); and when an appraisal of the property is obtained,
      it must meet all applicable appraisal requirements (described in Chapter B4-1,
      Appraisal Requirements). Priority of Common Expense Assessments Fannie Mae allows
      a limited amount of regular common expense assessments (typically known as HOA
      fees) to have priority over Fannie Mae’s mortgage lien for mortgage loans secured
      by units in a condo or PUD project. This applies if the condo or PUD project
      is located in a jurisdiction that has enacted the Uniform Condominium Act, the
      Uniform Common Interest Ownership Act, or a similar statute that provides for
      unpaid assessments to have priority over ﬁrst mortgage liens. The table below
      describes the permitted priority of common expense assessments for purposes
      of determining the eligibility of a mortgage loan secured by a unit in a condo
      or PUD project for purchase by Fannie Mae. Published May 6, 2026 629 If the
      condo or PUD project... Then... is located in a jurisdiction that enacted a
      law on or before January 14, 2014, that provides that regular common expense
      assessments will have priority over Fannie Mae’s mortgage lien for a maximum
      amount greater than six months, the maximum number of months of regular common
      expense assessments permitted under the applicable jurisdiction’s law as of
      January 14, 2014, may have priority over Fannie Mae’s mortgage lien, provided
      that if the applicable jurisdiction’s law as of that date referenced an exception
      for Fannie Mae’s requirements, then no more than six months of regular common
      expense assessments may have priority over Fannie Mae’s mortgage lien. is located
      in any other jurisdiction, no more than six months of regular common expense
      assessments may have priority over Fannie Mae’s mortgage lien, even if applicable
      law provides for a longer priority period. Notwithstanding any provisions to
      the contrary in the Guide, which do not require the lender to represent or warrant
      compliance with Fannie Mae project legal document requirements, the condo or
      PUD project legal documents must evidence compliance with the above priority
      of common expense assessment requirements. Delivery Requirements When delivering
      a loan for a unit located in a project, the lender must provide the Project
      Type Code and any applicable special feature codes as shown in the following
      table. The lender must also report all other applicable special feature code(s),
      including those speciﬁed in a variance in the Lender Contract and in the Special
      Feature Codes document on Fannie Mae''s website. Project Type Code Description
      E Established PUD project F New PUD project P Limited Review—New condo project
      Q Limited Review—Established condo project R Full Review—New condo project Published
      May 6, 2026 630 Project Type Code Description S Full Review—Established condo
      project T Fannie Mae-approved condo or PUD project, including those that: •
      have an Approved by Fannie Mae status in CPM, • are approved through PERS, •
      receive a CPM Approved by Fannie Mae message in DU U FHA-approved condo project
      V Condo project review waived - for certain project and transaction types 1
      Full Review—Co-op project 2 Fannie Mae-approved co-op project, including those
      approved through PERS Special Feature Code Description 588 Detached Condominium
      Unit Used to identify detached units in an attached or detached condominium
      project CPM ID Delivery Requirements Lenders are required to deliver the CPM
      ID number in the ﬁeld for "FNM Condominium Project Manager Project Identiﬁer"
      (Sort ID 39) in ULDD for the following projects: projects that require the use
      of CPM; or Fannie Mae-approved projects that are delivered as Type T for condos
      or PUDs, or Type 2 for co-ops. Lenders are encouraged to include the condo or
      co-op’s HOA or Project IRS Federal Tax Identiﬁcation Number (TIN) in the loan
      ﬁle and in CPM. Expiration for Project Reviews Project reviews must meet the
      following timeline requirements. Published May 6, 2026 631 Project Review Process
      Employed Expiration of Project Review • Limited Review • Full Review for Established
      Projects Must have been completed within one year prior to the note date Full
      Review for New Projects Must have been completed within 180 days prior to the
      note date Approved by Fannie Mae as reﬂected in CPM Must be valid (unexpired)
      as of the note date* Approved by FHA Must be valid (unexpired) as of the note
      date *A loan that receives a CPM Approved by Fannie Mae message in DU will retain
      the Approved by Fannie Mae status through the credit report expiration date
      speciﬁed on the DU Underwriting Findings report, unless the lender makes any
      changes to the CPM ID, project name, property address (state or zip code), or
      credit report. See B4-2.2-02, Full Review Process for additional requirements
      for loans that receive a CPM Approved by Fannie Mae message in DU. Loans must
      be delivered to Fannie Mae within 120 days following the note date. When the
      elapsed time between note date and delivery date exceeds this limit, the lender
      may deliver the loan only if the project continues to meet Fannie Mae project
      eligibility requirements at the time of delivery. Loans secured by units in
      a project that fails to meet Fannie Mae’s project eligibility requirements under
      the applicable review type as of the note date are eligible for delivery after
      the project comes into compliance with the eligibility requirements (provided
      all standard mortgage seasoning and other applicable requirements are met).
      For example, if a lender closes a loan in a new project for which the pre-sales
      are less than the pre-sale requirement, the lender may deliver the loan after
      the project’s pre-sales meet the Fannie Mae requirement (assuming the loan meets
      all other applicable requirements). Uniform Appraisal Dataset (UAD) 3.6 Policy
      Lenders using UAD 3.6 must follow the requirements in the UAD 3.6 Policy Supplement.
      Recent Related Announcements The table below provides references to recently
      issued Announcements that are related to this topic. Announcements Issue Date
      Announcement SEL-2026-05 May 06, 2026 Announcement SEL-2025-06 August 06, 2025
      Published May 6, 2026 632 Announcements Issue Date Announcement SEL-2025-04
      June 04, 2025 Announcement SEL-2025-02 April 02, 2025 Announcement SEL-2024-07
      November 06, 2024 Announcement SEL-2023-02 March 01, 2023 Announcement SEL-2022-02
      March 02, 2022 Announcement SEL-2021-11 December 15, 2021 Announcement SEL-2021-03
      April 07, 2021 Announcement SEL-2021-02 March 03, 2021 Announcement SEL-2020-07
      December 16, 2020 Announcement SEL-2020-04 August 05, 2020 Announcement SEL-2020-03
      June 03, 2020 Announcement SEL-2019-07 August 07, 2019 Announcement SEL-2019-06
      July 03, 2019'
  judgment: false
