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Freddie Mac Condominium Project Updates

This month, Freddie Mac updated Condominium Project Eligibility Requirements as announced in Guide Bulletin 2019-11. For a condominium buyer to obtain a conventional loan, the buyer and the condominium project must meet Freddie Mac (and Fannie Mae) lending guidelines. For the condominium project, Freddie Mac requires a condominium project review to address project health and risks that include, but are not limited to: project condition, marketability, financial stability, litigation, insurance coverage and unit owner restrictions on occupancy. The most recent updates are intended to provide greater flexibility in the assessment of certain project risk categories.

It is expected that with these updates more condominium units and condominium projects can qualify for home financing.

The highlights include:

• Condominium projects no longer need to include commercial parking facilities in the calculation of commercial space. This means that commercial parking facilities should not cause a project to exceed the requirement that there be no more than 35% commercial space.

• Condominium projects can exclude condominium units under an affordable housing program, condominium units owned/controlled by a non-profit for affordable housing and condominium units under a workforce housing program when calculating for excessive concentration by a single investor. This carve out may help increase financing opportunities for affordable units.

• For condominium projects in litigation, eligible minor litigation will also now include litigation where the estimated or known amount is not expected to exceed 10% of the Condominium’s Project’s funded reserves, provided this does not conflict with the applicable jurisdiction’s laws and regulations. This expands the categories of eligible minor litigation, that had otherwise made a project ineligible.

It is expected that with these updates more condominium units and condominium projects can qualify for home financing.

Katherine Brady Condo Law Blog

If you have any questions about your condominium project’s approval or the most recent Freddie Mac updates, call Katherine Brady for more information at 781-817-4900 or email Katherine Brady at

Katherine G. Brady