One owner owns several units. Does that make the project ineligible?

Fannie Mae's current single-entity ownership rule has three distinct conditions: two units for a 5-to-10-unit project that is part of a master association, two units for an 11-to-20-unit project, and 20% for a project with 21 or more units.

Why the first condition must stay separate

The Guide does not state a flat “5 to 20 units” row. For projects with 5 to 10 units, it expressly attaches the two-unit limit to projects that are part of a master association. Projects with 11 to 20 units have a separate two-unit condition. Projects with 21 or more units use a percentage.

Rental and lease arrangements, including lease-purchase and rent-to-own, count. The Guide also lists limited exclusions for certain sponsor or developer units being actively marketed, specified affordable-housing holdings, and higher-education workforce housing.

Is there a waiver?

The Guide describes a lender-controlled waiver for a purchase that reduces concentration, but only when all stated conditions are met: no more than 49% ownership, evidence of marketing toward 20% or less, current HOA assessments, and no pending or active special assessments.

Standing Check can screen supplied facts against this rule. It cannot establish ownership control, grant a waiver, approve a loan, or determine project eligibility.

Sources

• Fannie Mae Selling Guide B4-2.1-03, Ineligible Projects, version August 5, 2026 — Single-Entity Ownership, inclusions, exclusions, and waiver conditions.

Primary source accessed September 11, 2026.