We recently received several calls from concerned homeowners, real estate agents, and lenders regarding a rumor that Fannie Mae and Freddie Mac have stopped temporarily lending for transactions involving Parkfairfax units.
The Parkfairfax office is currently working with mortgage brokers and agents and has also spoken to Fannie Mae to learn more about the actual status and its implications for Parkfairfax. We are committed to keeping you informed and involved.
Please read carefully below:
On 2/2/2025, Fannie Mae’s website changed Parkfairfax’s Condo Approval status from “Approved” to “Unavailable.”
Why did this happen, and what does it mean?
Since the Surfside Condominium catastrophe in Florida, Fannie Mae and Freddie Mac made significant adjustments in treating loans for condo-type properties. The government-sponsored enterprises updated their condominium and cooperative project eligibility standards for properties with five or more units. The new guidelines mandate a review of a property’s repair status before mortgage approval. This review covers ownership structure and composition, reserve funds, litigation, and insurance. The agencies’ updated eligibility standards also denote the difference between critical and routine repairs and special assessments and inspections’ role in reviewing maintenance concerns.
During a recent mortgage application review, Fannie Mae was informed that some crawlspaces contain hazardous material. While Parkfairfax provided documentation proving that almost all crawlspaces have been abated, 15 buildings remain to be abated.
However, Fannie Mae still changed the status from “Approved” to temporarily “Unavailable” until all buildings are completed.
From Fannie Mae’s website: If a condominium status is “Unavailable,” can lenders submit documentation to have the status re-evaluated?
If a lender has completed a project review and has documentation to prove the eligibility issues are resolved, they can submit it to Fannie Mae for review and possibly remove the unavailable status. Lenders must review the documentation and explain why they believe the project meets Fannie Mae’s guidelines.
Does this mean buyers can’t get a loan to purchase at Parkfairfax?
No. Lenders who want to offer Fannie Mae or Freddie Mac loans must provide documentation proving all structural repairs have been addressed. This will be possible once all the remaining buildings are completed.
All other lenders, except for these two, still offer conventional loans and are working with other purchasers who wish to buy at Parkfairfax. Parkfairfax is also approved by government-backed FHA and VA loans and is approved until 2027 when it will be up for renewal.
When do we expect our Fannie Mae’s status to be changed back to “Approved”?
The hazardous material abatement is scheduled to be completed by February 19. Once completed, an engineer will inspect the buildings, sign off on the project’s completion, and notify Fannie Mae. Parkfairfax will send a follow-up update so that they can submit their loan applications to Fannie Mae and Freddie Mac.
Parkfairfax is committed to promptly addressing the maintenance of our community’s infrastructure to avoid future situations of this kind while implementing proactive maintenance plans that address our most valuable assets, our homes.
We carefully rely on engineers’ and experts’ opinions when implementing maintenance programs and promptly addressing repairs.
Please share this information with everyone who wants to know more about this matter.
We will inform you of any changes if something happens before the estimated timeline.
If you have further questions, don’t hesitate to contact the General Manager, Francisco Foschi, at ffoschi@parkfairfax.org.
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