Episode 29: Your Condo Might Not Qualify Anymore 🏢🚫
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Your Condo Might Not Qualify Anymore 🏢🚫
A condo buyer can have great credit, plenty of income and a strong down payment—and still be unable to purchase the property.
The problem may not be the buyer or the individual unit. It may be the condo association.
Fannie Mae and Freddie Mac recently eliminated the limited condo-review process for most loan applications dated August 3, 2026 or later. Unless a property qualifies for a specific waiver, the lender may now need to conduct a full review of the condo community.
That review can include the association’s annual budget, reserve funding, reserve study, insurance coverage, special assessments, deferred maintenance, structural concerns and pending litigation.
Reserve funding is an especially important issue. The current Fannie Mae minimum is generally 10% of annual assessment income during a full review, unless an acceptable reserve study supports another amount. For applicable applications dated January 4, 2027 or later, that minimum increases to 15%.
In this quick episode of Houses & Spouses, Ryan Hamilton explains how these changes could affect condo buyers and sellers—and why reviewing the HOA before listing a property or making an offer is more important than ever.
The good news is that a condo that does not satisfy conventional guidelines is not necessarily unsellable. Smaller developments may qualify for a review waiver, some projects may already have an eligible status, and portfolio lenders or alternative financing programs may offer another path.
The key is discovering potential problems before there is an accepted offer, an approaching closing date and a buyer who has already paid for inspections and an appraisal.
If you’re considering buying or selling a condo in Arizona, contact Ryan and the Gannon Hamilton Real Estate Team. We can help investigate the community, involve the right lender and develop a plan before financing problems derail the transaction.
Resources:
Fannie Mae Lender Letter LL-2026-03:
https://singlefamily.fanniemae.com/media/44986/display
Freddie Mac Condominium Unit Mortgage FAQ:
https://sf.freddiemac.com/faqs/condominium-unit-mortgage-faq
Fannie Mae/Freddie Mac Condo Questionnaire:
https://singlefamily.fanniemae.com/media/15656/display
Information is provided for general educational purposes and does not guarantee financing or project eligibility. Requirements vary by lender, borrower and property.
About The Houses & Spouses Podcast
The Houses & Spouses is hosted by Ryan Hamilton and explores real estate, weddings, relationships, family, and community through practical advice and personal stories.
Ryan Hamilton serves Arizona families as a trusted real estate professional, wedding officiant, podcast host, and community advocate.
Whether you're looking to buy a home, sell a home, celebrate a wedding, or simply connect with someone who values meaningful relationships and personal growth, Ryan is here to help.
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