Mortgage Grapevine

FNMA 1028 project approval - what does this mean?

this may be a stupid question, but thought I'd ask, so I can get some insight.

Can anyone tell me what this means.... it is a condition I got on a new construction condo in CA.

It reads "copy of FNMA 1028 project approval including subject unit"

What is this FNMA 1028 project approval

All help is welcome. Please help
by nikos234 March 27, 2007 12:00 AM

Get it from the developer or his RE agent. Standard doc, they´ll know what it is. That is, provided they got it before the project started.
by newgrc March 27, 2007 12:00 AM

Very Rarely and I mean rarely do Developers apply for a FNMA 1028. You should look for an Investor (ABN AMRO/Interfirst and several other)that do not ask for the questionaire or for the project to have a FNMA 1028.

Furthermore READ the fannie Mae Condo Guidelins for New Construction Condo´s and the READ your lender´s Condo Guidelines/doc requirements.

If the U/W is asking for a 1028 you might as well pull the loan and find a new home for it with a Conod friendly lender.

Good Luck
by AbsoluteMtg March 27, 2007 12:00 AM

BTW, if they don´t have it, you most likely have a non-warrantable condo. Unlikely that they wouldn´t have it though.
by newgrc March 27, 2007 12:00 AM

My sincere appologies for posting erronious info. The FNMA doc I was thinking of is for SFR developments that our development company as most others ALWAYS get before starting a PUD. We made the mistake of not getting one only once.
by newgrc March 27, 2007 12:00 AM

thanks for the input...... I still don´t know what this means.

I asked sellers RE agent for it, and she said exactly what absolutemtg said above...."rarely do developers apply for this." I have the file w/ CWIDE and they said they did non warrantable´s......... I thought non warrantable just indicated that the HOA was still under developer control.

the units are brand new construction so none have sold yet, and this is why HOA hasn´t been turned over yet. Im getting thrown for a huge loop w/ this whole FNMA thing. Does anyone know of a lender I can send this to, or give me a little more explanation as to what this is?

thanks a lot
Borrower is A+++ going full doc. 760 fico 90 ltv
by nikos234 March 27, 2007 12:00 AM

1028 is essentially what you would refer to as a "clear to close". The project goes in for approval and they issue a 1027 with conditions and then once those are satisfied they will issue final approval or 1028.

I haven´t dealt with new construction but on conversions there are usually presale requirements ranging from 33-50%. However, I think ABC will be first in a project.

Countrywide usually does spot approvals for each unit if there is no 1028. But again, I haven´t dealt with new construction so I don´t know if they will have any presale req. so you may want to talk with the underwriter or look at Fannies site.
by TheWorldIsMaddening March 27, 2007 12:00 AM

by nikos234 March 27, 2007 12:00 AM

thank you all soooo much for your help!!
by nikos234 March 27, 2007 12:00 AM


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