Understanding Condo Requirements: Fannie Mae vs. Freddie Mac

When it comes to financing a condominium, it’s important to understand the specific requirements set by Fannie Mae and Freddie Mac. These two government-sponsored enterprises play a crucial role in the mortgage industry, and MortgageDepot is proud to work with both of these government agencies to provide borrowers with the best financing options.

Fannie Mae’s Condo Requirements

Fannie Mae allows a Single Entity Investor to own no more than 20% of a development of 21 or more units. This means that if a single investor owns more than 20% of the units in a condo development, it may not meet Fannie Mae’s requirements for financing. However, MortgageDepot has a wide network of lenders who work with Fannie Mae, ensuring that borrowers have access to financing options even if their condo development doesn’t meet this specific requirement.

Freddie Mac’s Condo Requirements

On the other hand, Freddie Mac is slightly more lenient when it comes to condo requirements. They allow up to 25% ownership by a Single Entity Investor in the development of 21 or more units. This means that borrowers who are looking to finance a condo in a development where a single investor owns more than 20% of the units may still be eligible for financing through MortgageDepot’s network of lenders who work with Freddie Mac.

MortgageDepot’s Advantage

At MortgageDepot, we understand that every borrower’s situation is unique. That’s why we work with both Fannie Mae and Freddie Mac lenders to provide borrowers with a wide range of financing options. By leveraging the specific condo requirements set by these agencies, we can find the best solution for each borrower’s needs. Whether your condo development meets Fannie Mae’s 20% ownership limit or Freddie Mac’s 25% ownership limit, we have the expertise and resources to help you secure the financing you need.

Understanding the condo requirements set by Fannie Mae and Freddie Mac is crucial when it comes to financing a condominium. While Fannie Mae limits the ownership by a Single Entity Investor to 20% in a development of 21 or more units, Freddie Mac allows up to 25% ownership. At MortgageDepot, we utilize both agency lending requirements to provide borrowers with a wide range of financing options. Whether your condo development meets Fannie Mae’s or Freddie Mac’s requirements, we have the expertise and network of lenders to help you navigate the process and secure the financing you need.