Why Do I Need Project Approval?

  • Getting a condominium project approved by Fannie Mae, Freddie Mac or the Federal Housing Authority (FHA) opens up financing options to individual condo buyers tremendously
  • Approved Projects with Fannie Mae, Freddie Mac or FHA approval allow mortgages secured by units in the project to be sold to Fannie Mae or Freddie Mac for conventional financing or to be insured by the FHA for FHA government loans
    • Fannie Mae or Freddie Mac project approval is valid for conforming mortgage loans, loans that are $453,100 or less in Arizona
    • Fannie Mae project approval is also valid for Jumbo Mortgage Loans (loans greater than $453,100)
    • FHA project approval is valid for FHA loans up to $294,515 in Maricopa County, Arizona
  • Projects with Agency (Fannie Mae of Freddie Mac) or Government (FHA) approval are considered to be “Warrantable” projects, and projects that do not meet Agency or Government eligibility requirements are considered “Non-Warrantable
  • While a Non-Warrantable condominium may sometimes be financeable, the options for Non-Warrantable condo loans are limited, and if a non-warrantable condo is financeable, the interest rates are higher
  • Agency- and Government-approved condominium projects are significantly easier to market because of the superior financing options available

Get Your Condominium Financing Approved NOW

How Do I Get My Project Approved?

In order to meet Fannie Mae’s, Freddie Mac’s or the FHA’s project eligibility requirements, the Agency or Government entity considers the financial stability and performs a detailed review of the Project Documentation:

  • Legal Entity Documents for the project ownership and Homeowner’s Association
  • CCRs and Condo Declaration
  • Project budgets, financial statements, reserve studies
  • Construction plans, Engineer and Environmental reports
  • Appraisal reports, Insurance policies

Project approval is available for projects that are Proposed, Under Construction or Existing

The Agency or Government project approval process is detailed and coordinated with your Mortgage Possible Mortgage Professional and Home Point’s Condominium Review Department

Our Condominium Review Desk reviews the project and documentation, and the result is Conditional Project Approval, contingent on pre-sales of 50% of the residential units in a legal phase

Once you achieve a Certificate of Occupancy for a legal phase, the Conditional Approval becomes a Final Project Approval and units can be sold to buyers with conventional, jumbo or FHA mortgages

Get Your Condominium Financing Approved NOW

Ted Overton is a Sales Manager and Condominium Project Financing Specialist in the Scottsdale office of Mortgage Possible. He is a knowledgeable and accomplished mortgage lender, with over 30 years of experience in real estate and finance Ted has originated over $800 million in financing transactions. He received his MBA in finance and accounting from Northwestern University’s Kellogg School of Management and started his business career as a licensed CPA with Price Waterhouse.

Ted provides strategic mortgage planning services and is an expert in residential mortgage lending. He provides innovative, progressive mortgage solutions for home purchase or refinance.

Specialties include:

  • Conventional Loans
  • Jumbo Loans
  • Government (FHA/VA) Loans
  • Condominium Project Financing
  • Investment Property Finance
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Ted Overton

Loan Officer

ted.overton@mortgagepossible.com

Contact Me For Condominium Project Approval

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