Fannie Mae issued Selling Guide Announcement SEL-2025-06 (Announcement), setting forth updates to the Selling Guide. Per the Announcement, Fannie Mae updated:
- Co-op project eligibility requirements by:
- Allowing co-op projects to be eligible with up to 5% negative cash flow, provided the deficit results from isolated and non-recurring circumstances;
- Allowing co-op share loans with underlying mortgages maturing within 3 months to be eligible if refinance terms are secured or the mortgage will be paid off prior to maturity;
- Permitting subordinate financing for principal residences with LTV/CLTV/HCLTV ratios up to 90%; and
- Removing location-specific eligibility criteria; and
- Updated the Project Eligibility Waiver (PEW) policy by retiring the process. Lenders will no longer be permitted to submit new PEW requests after September 1, 2025. Loans associated with existing, valid PEWs must be delivered by the waiver’s expiration date.
Revisions related to co-op eligibility requirements went into effect August 6, 2025.
Click to view the Fannie Mae Selling Guide Announcement SEL-2025-06: https://www.tenaco.com/wp-content/uploads/2025/08/Fannie-Mae-Selling-Guide-Announcement-SEL-2025-06-08-06-25.pdf
