Condo mortgage rules tighten as associations face closer scrutiny
Starting Aug. 3, Fannie Mae and Freddie Mac will drop limited condo reviews and require full assessments of a condo association’s finances, reserves, insurance and upkeep, likely slowing loan approvals and increasing denials for noncompliant buildings; a separate Jan. 4 rule raises reserve requirements to 15% of annual budgets. Industry groups warn many projects could become ineligible or face delays, though smaller projects may qualify for waivers or alternative paths; cash buyers could have an edge during longer approvals.
