Freddie Mac Now Explains 'Not Eligible' Condo Reviews in October 26 Update
A new Condo Project Advisor release gives lenders more detail on certain rejected condo project assessments, potentially reducing back-and-forth without changing eligibility rules.
By Anthony Brikho · 5 min read
Freddie Mac has started telling lenders more about why some condominium projects fail its automated project review. Under an update to Condo Project Advisor (CPA) that took effect Oct. 26, 2026, a Project Assessment Request (PAR) that comes back Not Eligible may now include detailed comments explaining the specific assessment messages behind that result.
The change is about transparency, not eligibility. Freddie Mac's October 2026 CPA release notes, posted Oct. 19, describe new explanatory comments; they do not describe any loosening of the condo project standards in the Single-Family Seller/Servicer Guide.
What changed on October 26
According to the release notes, when a PAR status is Not Eligible, lenders "may see" detailed comments from Freddie Mac on two documents: the PAR Results Summary page and the CPA feedback certificate. When applicable, the comments give specific details for each assessment message and explain why the project did not meet Freddie Mac's requirements.
Freddie Mac says the added detail can help reduce follow-up inquiries between the lender (the "Seller," in Freddie Mac's terms) and the company. The update also touches Loan Product Advisor (LPA): if the condo project is submitted through LPA, the LPA feedback messaging will indicate that the submission has Not Eligible comments waiting in CPA.
The sample results page in the release notes illustrates the format. Next to a general Not Eligible message and a critical-repairs message, a comment column reads "Foundation repairs needed," alongside a Guide reference. That sample shows how a comment can turn a coded message into a concrete explanation. It is an illustration of the layout, not a new category of rejection.
What did not change
Several limits are worth stating plainly:
- Comments are conditional. The release notes say detailed comments may appear "when applicable." Lenders should not expect an explanation on every Not Eligible result.
- Not Eligible still means not eligible. Freddie Mac has said since 2024 that a mortgage secured by a unit in a project with Not Eligible status is ineligible for sale to Freddie Mac. A more detailed explanation does not convert that result into an approval.
- No requirements are waived. The update describes added information on existing screens. It does not announce new exceptions, waivers or revised project standards.
- Project review is separate from borrower qualification. A buyer can have strong credit, income and assets and still be unable to obtain a Freddie Mac-eligible loan on a unit if the building itself does not meet project requirements.
How the Not Eligible status works
Freddie Mac introduced Not Eligible as a PAR status on Feb. 26, 2024, as announced in Guide Bulletin 2023-24. In its 2024 explanation, the company said the status is assigned when a project does not meet certain project review and general eligibility requirements in the Guide, and that lenders can see it through CPA, LPA, Loan Quality Advisor and Loan Selling Advisor.
That same announcement described a path forward. Authorized homeowners association (HOA) representatives and Freddie Mac Seller/Servicers can use the Not Eligible Status Data Form to ask whether a project has that status and to appeal it. Freddie Mac said a project's status can change if additional information is provided, or if the identified issues are remediated and the project then meets applicable requirements.
The new comments fit into that existing process. If a lender knows the specific reason, such as the critical-repairs example shown in the sample, it can more quickly judge whether the issue is a documentation gap, a problem the HOA is already fixing, or a condition that rules the project out for now. Critical repairs are one example from Freddie Mac's own documentation; other Guide project requirements can also lead to a Not Eligible result, and the release notes do not add new reasons.
What it means for buyers, sellers and agents
For condo buyers, the practical benefit may be an earlier, clearer answer. Instead of hearing only that a building "didn't pass," a loan officer may be able to explain the specific project-level issue Freddie Mac identified. That can help a buyer decide whether to wait, ask the seller and HOA for information, look at other financing, or consider a different property.
Sellers and listing agents may also benefit from knowing the reason, because a project-level issue affects every buyer who seeks Freddie Mac-eligible financing in that building, not just one transaction. Still, nobody should treat a comment as a promise that fixing one item will lead to approval. Status changes depend on Freddie Mac's review of the information or the remediation.
Buyers should also remember that Freddie Mac is one investor. Other loan programs and lenders have their own condo rules, and a Not Eligible result from Freddie Mac is not by itself a statement about every financing option.
What lenders should do now
- Read the full results. On any Not Eligible PAR, check the comments column on the Results Summary page and feedback certificate, and watch for the LPA message pointing to CPA comments.
- Match comments to documents. Compare each comment with the HOA questionnaire, budget, insurance and other project documents already in the file, and confirm the facts with the association.
- Use established channels. Where information is missing or a problem has been fixed, follow Freddie Mac's existing inquiry and appeal routes, including the Not Eligible Status Data Form, rather than resubmitting and hoping for a different answer.
- Set expectations early. Tell buyers and agents what the comment says and what it does not. Avoid promising approval, timing or a particular outcome.
- Review the requirements. Freddie Mac's condominium unit mortgage page and the Condo Project Advisor product page remain the starting points for project eligibility and the tool itself.
The October 26 update is small, but it addresses a long-standing frustration in condo lending: learning that a project failed without learning why. Better information may shorten the back-and-forth. The rules a project must meet are the same as before.