09/28/2026
🏢 BIG CHANGES FOR CONDO & HOA OWNERS — AND BUYERS!
If you own or are thinking about buying or selling a condominium, there are important new financing changes you need to know about.
Starting August 3, 2026, Fannie Mae & Freddie Mac eliminated its Limited Review process for many condo mortgage transactions. That means lenders are taking a closer look at the financial health of the entire condominium association—not just the buyer and the individual unit.
What does that mean?
🔹 HOA reserves matter more than ever
🔹 Reserve studies are becoming increasingly important
🔹 Deferred maintenance and critical repairs can affect financing
🔹 Special assessments are receiving greater scrutiny
🔹 A condo project that doesn't meet lending requirements can create problems for buyers—and sellers
Why are some associations imposing special assessments?
Many associations are discovering that they need additional funds for major repairs and future capital expenses such as roofs, elevators, balconies, paving and mechanical systems.
A special assessment isn't automatically a bad thing. Sometimes it's a sign that an association is proactively addressing a major expense.
The important question is:
WHY is the assessment being imposed, and what will the association's financial position look like afterward?
And there's another change coming: Freddie Mac's minimum replacement-reserve requirement is scheduled to increase from 10% to 15% for applicable mortgage applications beginning January 4, 2027.
🏠 Buyers:
Don't just investigate the condo. Investigate the association.
💰 Sellers:
Don't wait until you have a buyer under contract to discover that the condo project could create a financing problem.
If you're buying or selling a condo in Philadelphia, Bucks or Montgomery County, I'd be happy to help you understand the questions you should be asking.
Robert S. Beck | The PAhouseguy
Century 21 Integra
📱 (215) 290-7207
🌐 Pahouseguy.com
Educational information only. Condo financing requirements vary by lender and loan program.
