Why new projects are held to a presale test
A building mostly sold to people who live in it is a building whose association will be funded and governed. Until enough units are sold, the developer controls the association and pays dues on unsold units, and the agencies are underwriting the developer as much as the building. The presale test is how they wait that period out. It is the one owner-occupancy style requirement that survived the March 2026 changes.
Phases and legal phases
Large projects are often built and declared in phases. The review can be applied to the legal phase you are buying in rather than the whole project, which helps if your phase is complete and selling well even though later ones are not started.
Your options as an early buyer
- A portfolio or non-QM loan now, from a lender that reviews new projects itself and does not require the agency presale level.
- Developer-arranged financing, which some projects offer — compare it on the same terms as any other offer.
- Timing the closing for when the project reaches the presale threshold, if the contract and the construction schedule allow.
- Refinancing later, once the project matures and becomes eligible.
Newly converted buildings
Apartment buildings converted to condominiums face the same presale logic plus questions about the condition of an older building. In Florida, Fannie Mae dropped its extra requirement in March 2026 that new attached projects go through its Project Eligibility Review Service, which removes one step for Florida conversions and new towers.
What to ask the sales office
- How many units in my phase are sold or under contract, and to owner-occupants or investors?
- When is the certificate of occupancy expected, and are amenities included in that?
- When does turnover of the association from the developer to the owners happen?
- Which lenders have already approved the project?
Sources, checked September 2026: Fannie Mae Selling Guide B4-2.2-02, new and newly converted projects · Fannie Mae Lender Letter LL-2026-03 (March 18, 2026). Agency guides change; a lender confirms the rules in force on your application date.
Common questions
Why is my new-construction condo non-warrantable?
Usually because the project has not yet sold enough units to owner-occupants or second-home buyers, or the building or phase is not complete.
Can I get a loan on a new condo that isn't warrantable?
Yes, from lenders that review new projects on their own terms, or through developer-arranged financing.
Will a new condo become warrantable?
Usually, as units sell and construction completes. Many early buyers refinance at that point.
Does the 2026 rule change help new projects?
Partly. The investor-concentration test was retired for established projects only; the presale requirement for new projects remains.