Freddie Mac’s new tool makes it easier for lenders to determine if a specific condo qualifies for a mortgage loan. It says buyers can now get a firm answer in “just minutes.”
Freddie Mac announced enhancements to its Condo Project Advisor to help lenders “bring greater efficiency to the financing of condominiums.” Under the new system, lenders can determine whether a specific finance loan to purchase a condo unit meets Freddie Mac’s guidelines – and it takes “just minutes.”
The designation – known as “Project Certified” status for Project Assessment Requests (PAR) – confirms that condo properties meet certain project review and general eligibility requirements for financing. If granted that status, Freddie Mac says lenders only need to do minimal project underwriting, saving lenders and borrowers time and money.
The change also allows lenders to submit a condo that doesn’t already carry this status and receive Project Certified status for certain projects at no cost.
The National Association of Realtors® (NAR) has been advocating for a system to help condo buyers secure a mortgage and thanked Freddie Mac for releasing the new tool.
“These changes are important steps to improve the HOA’s (condo homeowners’ association) ability to meet the more stringent requirements put in place after the Surfside building collapse and (NAR) appreciates these important changes and Freddie Mac’s willingness to address these challenges proactively,”
With the changes, the Condo Project Advisor tool assigns projects in Freddie Mac’s database with an approved or not-approved status, allowing lenders to view previously reviewed condos. An approved status eliminates the need for costly and time-consuming resubmissions, while an unapproved status still requires submission.
Freddie Mac also proactively contacts an HOA to remedy missing information if a project loses status. And, if a project does lose its status, the HOA can now contest the change directly with Freddie Mac.
