Finance
A Massachusetts condominium buyer is applying for a conventional mortgage. The lender will review the condo project's 'warrantability.' This includes confirming:
AOnly the unit's square footage
BThe project meets Fannie Mae/Freddie Mac requirements: sufficient owner-occupancy rate, adequate reserves, no pending litigation, and appropriate insurance✓ Correct
COnly that the association is incorporated
DThe age of the building only
Explanation
Conventional condo mortgage financing requires the project to be 'warrantable' under Fannie Mae/Freddie Mac guidelines, which evaluate owner-occupancy rates, reserve fund adequacy, no significant pending litigation, concentration limits, and insurance requirements.
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