Critical repairs & structural inspections
A low appraisal is not the only collateral risk. A building with unresolved structural or safety problems may be entirely ineligible.
Fannie ineligible until resolved
Projects needing critical repairs are ineligible. Fannie includes conditions affecting safety, structural integrity, habitability, financial viability or marketability, including certain material deficiencies, water intrusion, advanced deterioration, failed mandatory inspections and other serious issues.
Three-year inspection lookback
If a structural or mechanical inspection was completed within the prior three years, Fannie requires the lender to review it. Unaddressed critical repairs, evacuation orders or required regulatory actions make the project ineligible until properly resolved.
Freddie aligns on the core risk
Freddie likewise treats condo projects needing Critical Repairs as ineligible and requires review of applicable recent structural/mechanical inspections.
Official guide baseline
Fannie Mae Selling Guide · Freddie Mac Seller/Servicer Guide
Condo eligibility is both loan-level and project-level. A strong borrower does not cure an ineligible project.