08/27/2026
U.S. Condo Loans: Tougher Rules, Higher HOA Reserves
Condo buyers and owners should be aware: as of August 3, new U.S. condo lending rules are in effect, and they're reshaping the mortgage landscape. Lenders are now required to take a much closer look at association finances, reserve funding, and property maintenance before a purchase can move forward. Associations will need to boost their repair reserves—from roughly 10% to 15% of their annual budgets—which could mean higher HOA dues for residents. The streamlined review process that made some condo loans simpler is off the table for many buildings, so most transactions will now demand a full project review and additional documentation. This means approvals may take longer, and some buildings may struggle to meet the tougher conventional financing standards. If you're considering a condo purchase, make sure to ask about reserve funding and whether the building qualifies for a full review. Current owners should be prepared for potential dues increases as the Early-Q1 2027 reserve targets approach, and sellers will want to get ahead of these changes by ensuring their building is ready for scrutiny. My role as your mortgage advisor is to help you navigate these evolving requirements with clarity and strategy—so you can move forward with confidence, not uncertainty.
