The fast-track condo review is gone, and the 50% owner-occupancy rule went with it
The fast-track condo review is gone, and the 50% owner-occupancy rule went with it
2026-09-15 · Mississippi · Compliance
The abbreviated review that carried a large share of condominium loans is gone. Since August 3, 2026, an established Mississippi condominium project seeking conventional financing goes through Full Review or Reciprocal Review, with no fast track. Freddie Mac retired its Streamlined Review type; Fannie Mae retired Limited Review. Both changes came in the March 18, 2026 project-standards package.1
What a Full Review asks that a fast track did not
The abbreviated paths let a lender qualify a project largely on loan-to-value and a short questionnaire. Full Review under Freddie Mac Guide § 5701.5 reaches the project itself: budget and reserve allocation, the reserve study, litigation, insurance adequacy, delinquency rates, commercial space, single-entity ownership, and critical repair status.
Industry estimates put roughly 40% of prior project reviews in the abbreviated bucket. All of that volume now goes through the longer path.
Two changes that cut the other way
The 50% owner-occupancy requirement is retired for established condominium projects under Freddie Mac Guide § 5701.5(b), and Fannie Mae dropped its corresponding 50% investor-concentration limit. Presale requirements still apply to new projects.
Exempt-from-Review was expanded to projects of 2 to 10 units. Projects of 5 to 10 units must not be part of a master association, must not need critical repairs, and must not be under an evacuation order.
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