07/24/2026
Buying a condo? Your approval is only half of the approval.
Beginning August 3, Fannie Mae and Freddie Mac are retiring the limited review processes previously used for many established condo projects.
That means a lender may need to conduct a more complete review of the association’s budget, reserves, insurance, maintenance, litigation, and other project details.
A unit may have recently closed with conventional financing and still require a different review for the next buyer.
That does not mean the project will fail. It means buyers should not assume that a prior closing guarantees the next approval.
Some investment-heavy communities may benefit from the removal of a previous investor-concentration restriction. And when a project is non-warrantable, certain portfolio or Non-QM options may still be available.
The important step is identifying the project issue early—before the financing timeline becomes compressed.
