08/17/2026
Major Update for the Condo Market: The "Limited Review" Era is Officially Over. 🚨
If you are buying, selling, or lending in the condominium space, the rules of the game just changed dramatically. Starting this month, Fannie Mae and Freddie Mac have eliminated the "Limited Review" shortcut for most condo loans.
What does this mean? In the past, a buyer with a high credit score and a large down payment could breeze through approval without the lender digging too deeply into the building’s health.Not anymore.Moving forward, nearly every condo purchase or refinance will require a Full Review. Mortgage approvals are no longer just about the buyer's financial strength—they are a strict audit of the building itself.Here is what lenders are now scrutinizing for buildings with more than 10 units:HOA Financials: Budget health, special assessments, and owner delinquency rates.Reserve Funds: Tighter baselines moving toward a strict 15% reserve budget target.Building Safety: Detailed reviews of deferred maintenance, structural integrity, and recent inspection reports.Insurance & Litigation: Stricter safety standards and a deep dive into any ongoing lawsuits.The Bottom Line:Expect longer underwriting timelines and potential delays. Buyers need to vet buildings early, sellers should ensure HOAs are transparent, and agents must adapt to these new hurdles.Have you already run into these new guidelines on a recent deal? Let’s discuss in the comments. 👇
