I'm in the process of buying a condo in which the P&S agreemnt was signed 3 weeks ago and was...yes, WAS...scheduled to close today. Due to my lenders idiocy in miscalculating my income by $300mo. when inputing into DU, i'm scrambling to reduce monthly debt by $200.

Now she has all of a sudden stated that Fannie will now require a review, since "limited reviews" are hard to obtain. She says she has not seen a full review needed in 7+ years and she is not well versed in the criteria. Once again, my closing date is postponed (for the third time due to lender).

Does anyone know what the criteria are to be approved by Fannie? If this information helps it is an 11 unit, new construction(not conversion) complex with 2 units occupied by owner and none are rented. No units are owned by the seller/builder.

Sorry to hear about this complication... just to recap, it looks like only 2 of 11 units are sold right now? If I'm reading your scenario correctly it's not going to be too easy. I don't think an 11 unit condo will want to get a 1028 approval.

Generally there are presale requirements (the lowest number being 60%) for the 3 classes of condos that can have the limited review. Is the developer in control of the HOA still?

I think your best best might be to finance this as a non-warrantable condo. I do know that some lenders (TBW) don't do a condo review and this may go through with them.