Condo approvals just got stricter. Don't let it cost you a closing.
The building now has to qualify, not just the buyer. Fannie Mae and Freddie Mac ended the quick “Limited Review” shortcut, so most condos now get a Full Review of the HOA’s budget, reserves, insurance, and condition.
If the HOA’s paperwork isn’t ready, the deal can stall or fall apart, even with a perfectly qualified buyer. Many agents don’t find out until weeks into the contract. You can find out today, for free.
- Listing agents: learn which loan types a buyer can use on your condo before it hits the market.
- Buyer's agents: spot a building problem before your client is deep into the contract.
- No cost, no obligation. Just the address, your name, and your email.
Check a condo before it costs you a closing.
Start typing the address. We'll fill in the rest.
Request received.
Our team is pulling the project details now. Your condo report will be emailed to you, and a Coltrain loan officer will reach out if anything needs attention.
What changed, and when
The shortcut for approving condo buildings is gone.
Issued by the agencies behind most U.S. mortgages
Not a lender policy. Fannie Mae and Freddie Mac changed the rules, so it affects nearly every conventional condo loan, with any lender.
August 3, 2026
Limited Review retired
The quick building check is gone for most condos.
Right now
Full Review is the default
Lenders dig into the HOA's budget, insurance, and condition.
January 4, 2027
Reserves rise from 10% to 15%
Some buildings that pass today won't pass then.
In plain terms
A perfectly qualified buyer doesn't guarantee the condo association meets the new requirements.
A condo mortgage has two approvals. Your buyer can have excellent credit and income and still run into a problem if the condo development doesn't meet the requirements.
The lender isn't just looking at one unit. It's looking at the whole association behind it: the roofs, the grounds, the budget that pays for them, and the insurance that protects them.
Approval 1
The buyer qualifies
Credit, income, assets, and debt. This is the part everyone already plans for.
Approval 2
The building qualifies
The HOA's budget, reserves, insurance, and condition. This is the part that now takes more work.
The result
A closing on time
Both have to clear. Checking the building early is how you keep a strong buyer from losing a deal.
What a Full Review looks at
The HOA paperwork that now decides condo deals.
Budget and reserves
Is the HOA saving enough for future repairs?
Insurance
Master and flood policies must be current.
HOA questionnaire
Slow answers from management stall closings.
Repairs and lawsuits
Big repairs, assessments, or litigation get flagged.
What you'll get back
A clear read on the building, by loan type.
Your condo report shows how the project looks across the major loan programs and which HOA documents are on file, missing, or expired.
- 1Eligibility by loan typeConventional, FHA, VA, USDA, and non-agency options, so you know which buyers can realistically finance it.
- 2Document statusBudget, master insurance, questionnaire, and flood coverage, with expiration dates where available.
- 3A plan if there's a gapIf the building doesn't fit one program, we'll talk through the options that still work, including non-warrantable condo financing.
Illustrative example only. Actual reports reflect information available at the time of the lookup, and findings can change after underwriter review.
Talk to a loan officer
Want a hand getting ahead of this?
Whether you have a listing coming up, a buyer eyeing a condo, or you just want to understand the new rules, one of our loan officers is happy to walk you through it.
- Which HOA documents to request, and when
- What to do if a building doesn't qualify
- A quick training for your office or team
Prefer to call? (631) 851-4420
Ask a loan officer
Tell us what you're working on and we'll reach out.
Thanks, we got it.
A Coltrain loan officer will reach out shortly.
Questions agents are asking
Condo Limited Review FAQ
What was Limited Review?+
Limited Review was a shorter way for a lender to check an established condo development on a conventional loan (Freddie Mac's version was called Streamlined Review). Instead of reviewing the HOA's budget, insurance, and other documents in depth, the lender could rely on a streamlined check for many deals.
When did Limited Review go away?+
For loan applications dated August 3, 2026 or later. Fannie Mae retired Limited Review and Freddie Mac made the matching change to its Streamlined Review. A development that previously qualified for Limited Review now needs a Full Review, unless it qualifies for a waiver or another permitted approval route.
Does every condo now need a Full Review?+
No. The agencies still allow project review waivers in certain cases, including qualifying small condo projects and detached condo units. The fastest way to know which applies is to check the specific building.
What changes on January 4, 2027?+
The standard budget allocation for replacement reserves increases from 10% to 15% for Full Review applications dated January 4, 2027 or later. This is a separate change from the August 2026 retirement of Limited Review, and some buildings that pass today may need a closer look next year.
Can my buyer be fully qualified and still have a condo loan problem?+
Yes. A condo mortgage needs two approvals: the buyer and the building. A buyer with excellent credit and income can still run into trouble if the condo development doesn't meet the requirements. That's why checking the project early matters.
What if the condo doesn't qualify for conventional financing?+
There are often still paths. Non-warrantable and non-agency condo loans are built for buildings that fall outside Fannie Mae and Freddie Mac guidelines. Learn more about non-QM loan options or read our guide to condo vs. co-op financing on Long Island.
Is there a cost for the condo report?+
No. The condo report is free for real estate agents, whether you're on the buy side or the sell side of the transaction.
Sources: Fannie Mae Lender Letter LL-2026-03 and Freddie Mac Guide Bulletin 2026-C. This page is general education for real estate professionals, not a loan approval or commitment. Project eligibility is determined during underwriting.
Keep learning
More resources for your condo clients
Get ahead of it
Don't let the building be the reason a deal falls apart.
Send us any condo address and we'll send you the report. Free for agents, on either side of the deal.