Section 101 – Project Classifications
The basic classifications for condominium, PUD, and cooperative projects are described below:
• A Type A condominium project is an established condominium project in which a lender is providing financing on a spot-loan basis. The project must satisfy a 90% conveyance-to-unit purchasers requirement to be classified as a Type A project. The lender determines the acceptability of a Type A project. (also see Chapter 2)
• A Type B condominium project is a new condominium project or an existing building that is being converted to a condominium project, which the lender underwrites in our behalf. It may also be an established condominum project that consists of four or fewer dwelling units. The only new projects that cannot be classified as a Type B project are those subject to additional phasing or annexation or those composed of single-width manufactured homes. (also see Chapter 2)
• A Type C condominium project is generally a new condominium project that Fannie Mae reviews. A Type C project classification may also include established projects-such as those consisting of certain types of manufactured homes or those that the lender wants us to review to assure that they appear on our list of accepted projects. (also see Chapter 3)
• A Type E PUD project is an established planned unit development project in which control of the owners' association has been turned over to the unit purchasers. The lender determines the acceptability of a Type E project. (also see Chapter 4)
• A Type F PUD project is a new planned unit development project or, in some cases, an existing planned unit development project that has not had control of the owners' association turned over to the unit purchasers. Either the lender or Fannie Mae determines the acceptability of a Type F project. (also see Chapter 4)
• A Type 1 cooperative project is an established cooperative project in which a lender is providing financing on a spot-loan basis. At least 80% of the total units in the project must have been conveyed to principal residence purchasers. The lender determines the acceptability of a Type I project (except for the rare situation in which the project is composed of single-width manufactured homes, in which case we must review the project.) (also see Chapter 5)
• A Type 2 cooperative project is any cooperative project that is submitted to Fannie Mae for review-either because the lender wants the project to appear on our list of accepted projects or because the project does not qualify as a Type 1 project and we have not agreed to waive the specific eligibility criteria that keep it from qualifying. Although Fannie Mae determines the acceptability of a Type 2 project, the lender must perform an underwriting analysis of the project. (also see Chapter 5)
The lender's basic role in the project acceptance process is the same regardless of the type of project. We expect the lender to review all aspects of the project in terms of whether they meet our eligibility and underwriting requirements. When the lender assumes the responsibility for making the final determination of a project's eligibility-as it does for Types A and B condominium projects, for Type E PUD projects, and for Type I cooperative projects and has the option of doing for Type F PUD projects-the lender should accept the project if it meets the particular eligibility and underwriting criteria. When the lender requests us to make the final determination of a project's eligibility-as it does for Type C condominium projects and Type 2 cooperative projects and has the option of doing for Types A and B condominium projects and Type F PUD projects-the lender should present the conclusions of its underwriting analysis to us and recommend that we accept the project. Applications for project acceptance must be submitted to the Fannie Mae regional office that is responsible for the geographic area in which the project is located. (The Philadelphia office is responsible for projects located in our Northeastern and Southeastern regions; the Pasadena office is responsible for projects located in our Midwestern, Southwestern, and Western regions.)
