What is Fannie Mae CPM?
Fannie Mae’s Condo Project Manager™ (CPM™) is a free, web-based tool that enables lenders to quickly and easily certify a condominium project (or a legal phase of a project). The project must be eligible under the Full Review requirements.
What does CPM mean in mortgage?
Constant Payment Mortgage
CPM – Constant Payment Mortgage – This payment pattern simply means that a level, or constant, monthly payment is calculated on an original loan amount at a fixed rate of interest for a given term.
What is a CPM review?
Condo Project Manager (CPM) CPM is a Web-based tool designed to help lenders determine if a project meets Fannie Mae’s eligibility requirements. When CPM is used as part of the project review, the lender must document the loan file with the CPM decision by including the unexpired CPM Certification in the file.
What is a Fannie Mae warrantable condo?
A warrantable condo is one that a homebuyer can finance using a conventional mortgage, after having been approved under a set of guidelines set by government-sponsored enterprises Fannie Mae and Freddie Mac. If you’re looking to buy a condo, making sure it’s “warrantable” can be vital in being able to pay for it.
How long is a condo questionnaire good for Fannie Mae?
The streamlined PERS submission process for established projects requires the Condominium Project Questionnaire (Form 1076), or a substantially similar form, to be completed within the past 180 days.
What percentage of condos can be rented Fannie Mae?
As long as you purchasing your new condo with the intent to occupy this condo as your Primary Residence, Fannie Mae no longer requires a specific occupancy rate in order to obtain a mortgage on the property. You can put down as little as 5% and in some cases even as low as 3% down payment.
What are the major differences between the cam and CPM loans?
With CAM you know that you owe less with each payment. CPM – your total payment is the same, but only a small part (if any) goes towards amortization of the principal. CPM can even have negative or zero amortization, meaning that amount you owe is not getting smaller.
What is a validity of CPM approval?
Expiration – Questionnaires are valid for 12 months for established projects and six (6) months for new projects. If the Project Questionnaire expires, either a Condo Questionnaire Recert or a new Standard Condo Questionnaire must be obtained.
Does Fannie Mae allow non-warrantable condo?
Non-warrantable condo financing is unavailable via Fannie Mae and Freddie Mac, the FHA or the VA. To get a non-warrantable condo mortgage, you’ll need to talk with a specialty lender.
Why would a condo not be Fannie Mae approved?
What makes a condo ineligible for Fannie Mae approval? If the lender’s review of the condo project (either limited or full) reveals any of Fannie’s Mae’s “ineligible characteristics,” the unit is not eligible for Fannie Mae financing.
Does Fannie Mae require a condo questionnaire?
The Condominium Project Questionnaire (Form 1076) helps lenders collect data to determine condo project eligibility. This form is optional; however, lenders are encouraged to use and retain the form in the loan file. A substantially similar form may also be used in its place.
Does Fannie Mae require a full bathroom?
Two weeks after our (former) lender got the appraisal they told us they can’t loan on the property because it doesn’t meet Fannie Mae requirements. The only full bathroom is in a fully finished basement and the lender says FM requires at least one full bathroom above grade.
What is a cam loan?
Common Account Maintenance (CAM) is a standardized event-driven, transaction-based reporting process for lenders, servicers, and guaranty agencies that facilitates the exchange of loan, disbursement, demographic, default aversion and claim information in an electronic format.
Why do lenders charge origination fees and loan discount fees?
An origination fee is typically 0.5% to 1% of the loan amount and is charged by a lender as compensation for processing a loan application. Origination fees are sometimes negotiable, but reducing them or avoiding them usually means paying a higher interest rate over the life of the loan.
What is CPM in facility planning?
The critical path method (CPM) is a step-by-step project management technique for process planning that defines critical and non-critical tasks with the goal of preventing time-frame problems and process bottlenecks.
What is a legally phased project?
A legally phased project requires that a supplement or amendment to the master deed or declaration be. recorded in the public records to formally make additions to the project. Lenders are able to approve legal. phases for projects provided the subject unit’s legal phase meets all requirements of the Full Review. …
What makes a condo Warrantable vs non-Warrantable?
Conforming mortgage rules for condos Fannie Mae and Freddie Mac use the term “warrantable” to describe condominium projects and properties against which they’ll allow a mortgage. Condo projects and properties which don’t meet Fannie Mae and Freddie Mac warrantability standards are known as non-warrantable.
What makes a property unwarrantable?
When a condo is labeled as non-warrantable, it means that it does not meet conventional guidelines and will not be bought by government-backed entities like Fannie Mae and Freddie Mac. Many lenders consider financing a mortgage for this type of property to be too risky which can make it harder to finance.
Who typically pays for the condo questionnaire?
The fee for a condo questionaire is generally about $250-300. The prospective borrower typically pays the fee.
Does a walk in shower count as a full bath?
It allows you the space to create a large, luxurious walk-in shower. But does it come at a price? Typically, a bathroom must have a toilet, sink, and tub to be considered a full bath. A bath with a toilet, sink, and shower, but no tub, would be considered a three-quarter bath.
Why does Fannie Mae buy foreclosures?
When buying a home buyers sometimes try to avoid foreclosure homes because of many different reasons. However, a foreclosure home owned by Fannie Mae shines through the darkness that engulfs all foreclosure homes. Fannie Mae Homepath properties provide low down payments and special financing.
What are Fannie Mae guidelines?
In order for Fannie Mae to buy single family home loans from mortgage bankers, savings and loan associations, commercial banks, and other financial institutions, the loans must conform to their set of “Fannie Mae guidelines.” Together with an acceptable credit score, they require certain “debt to income ratios.” These ratios are calculated as a percentage made up of of your monthly gross income in relation to how much goes toward housing expenses and to servicing such debt as auto
How many bedroom will a Fannie Mae loan on?
Fannie Mae – Wikipedia. Conforming loans[edit]. Fannie Mae and Freddie Mac have a limit on the maximum sized loan they will guarantee. This is known as the “conforming loan limit (29) … Other rules for conforming loans are set by Fannie Mae or Freddie Mac, These loans tend to have high rates and may contain risky features. (30) …
Can I rent a Fannie Mae home?
It’s now perfectly clear that you can use a Fannie Mae loan to purchase a second home that will be used as a rental property. As long as you wait one year, you can rent it out on a longterm basis, and even in the first year, short-term rentals are possible as long as you use the property primarily for your personal use and enjoyment.