B4-2.2-01, Limited Review Process (04/02/2025)
Introduction
This topic contains information on the Limited Review process performed by lenders, including:
- Unit and Project Type Eligible for Limited Review
- Transactions Eligible for a Limited Review
- Limited Review Eligibility Requirements
- CPM Delivery Restrictions Notifications
Unit and Project Type Eligible for Limited Review
To be eligible for a Limited Review, the unit securing the mortgage must be an attached unit in an established condo project.
Transactions Eligible for a Limited Review
The following table describes the transactions that are eligible for a Limited Review.
| Limited Review Eligible Transactions -Attached Units in Established Condo Projects (For Projects Outside of Florida) | |
|---|---|
| Occupancy Type | Maximum LTV, CLTV, and HCLTV Ratios |
| Principal residence | 90% |
| Second home | 75% |
| Investment property | 75% |
Attached units in established projects located in Florida are subject to more restrictive LTV ratio requirements under the Limited Review process. See , for additional information.
Limited Review Eligibility Requirements
In completing a Limited Review, the lender must ensure that the project and subject unit meet the eligibility requirements described in the following table.
| ✓ | Limited Review Eligibility Requirements |
|---|---|
| The project meets Requirements Applicable to All Properties in a Condo, Co-op, or PUD Project described in . | |
| The project is not an ineligible project. (See). | |
The project does not consist of manufactured homes.
| |
| No more than 15% of the total number of units in the project are 60 days or more past due in the payment of each special assessment. |
These requirements apply to both DU loan casefiles and manually underwritten loans.
If the project and loan transaction are eligible for and meet all of the eligibility requirements of the Limited Review process, the lender is not required to validate that the project also meets the eligibility requirements of another project review type. However, if the LTV, CLTV, or HCLTV ratios exceed the limits above, or in the event the lender becomes aware of a circumstance that would cause the project or transaction to be ineligible under a Limited Review, the lender must use one of the other project review methods to determine project eligibility and the project must meet all of the eligibility requirements of that selected alternate project review type.
Note: For loans eligible for Limited Review that receive a CPM Approved by Fannie Mae message in DU, see CPM Approved by Fannie Mae Message in DU in, for additional information.
CPM Delivery Restrictions Notifications
Project transaction eligibility or other loan-level restrictions will display in CPM and/or on the DU underwriting Findings report, when applicable. When CPM displays a delivery restriction for a specific project, lenders may only sell loans that comply with the stated restrictions, even if the loan receives a CPM Approved by Fannie Mae message in DU.
For example, loans in some projects may be limited to certain occupancy types (such as principal residences only, or principal residences and second homes), or there may be limit on the LTV ratios.
Recent Related Announcements
The table below provides references to recently issued Announcements that are related to this topic.
| Announcements | Issue Date |
|---|---|
| April 02, 2025 | |
| July 05, 2023 |
