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Keeping Current Matters • August 6, 2026

Major Changes to Condo Financing: What Buyers and Sellers Need to Know

by Julie Summers Christensen

Buying or selling a condominium just became a little more complicated.

Beginning with loan applications dated August 3, 2026, Fannie Mae and Freddie Mac have retired the streamlined condo project review process for established condominium projects with more than 10 units. That means lenders are now required to complete a much more comprehensive review of the homeowners association (HOA) before approving many conventional loans.

In other words, it’s no longer just about whether the buyer qualifies for financing. The financial health of the condominium association now plays a much larger role.

Lenders may review items such as:

  • The HOA’s annual budget
  • Reserve funding and reserve studies
  • Insurance coverage
  • Pending litigation
  • Delinquent HOA dues
  • Other financial and operational documents

Even a highly qualified buyer with excellent credit and a substantial down payment could face financing challenges if the condominium project doesn’t meet these updated lending requirements.

For sellers, this change makes preparation more important than ever. Obtaining HOA financial documents—including budgets, reserve studies, insurance information, and other key records—before listing a property can help avoid surprises during escrow and keep transactions moving forward.

Developers of attached housing should also be aware that project documentation is receiving greater scrutiny during underwriting, making accurate and complete documentation increasingly important.

While these changes may sound intimidating, they don’t have to derail a successful transaction. Working with an experienced real estate professional who understands the financing landscape can help buyers and sellers anticipate potential issues before they become costly delays.

Julie Christensen of ERA Brokers Consolidated stays informed on industry changes that affect her clients and works closely with lenders, title companies, and HOA representatives to help transactions move as smoothly as possible. Whether you’re considering buying, selling, or simply wondering how these new lending guidelines could affect your condominium, Julie is happy to help you understand your options.

Real estate is always evolving—and having the right guidance can make all the difference.

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