08/14/2026
A condo is not just the space inside your front door.
It is also the building, the association, the budget, the reserves, the insurance, the maintenance history, and the documents behind it.
That is why condo buyers, sellers, and owners need to pay attention to the recent Fannie Mae and Freddie Mac condo lending guideline updates.
In simple terms, lenders may look more closely at the financial and physical health of the condominium project, not just the buyer or the individual unit.
That review may include:
Association budgets
Reserve funds
Reserve studies
Insurance coverage
Special assessments
Building maintenance
Pending litigation
HOA documents and meeting minutes
Why does this matter?
Because these details may affect whether financing moves smoothly, whether closing timelines are delayed, how confident a buyer feels, and how prepared a seller needs to be.
For buyers:
Do not only look at the finishes, floor plan, view, or monthly payment.
Ask about the building.
Does the association have healthy reserves?
Are there special assessments?
Is the building properly insured?
Are major repairs being discussed?
Are meeting minutes and financial documents available?
For sellers:
Preparation matters.
Gather condo documents early. Know what your association can provide. Understand whether there are any maintenance concerns, insurance questions, assessments, or document delays that could affect a buyer’s financing.
A strong condo listing strategy is not only about price, photos, and marketing. It is also about being ready for the questions a lender, buyer, attorney, or agent may ask.
For condo owners:
Stay involved before there is a problem.
Attend meetings. Read the budget. Ask about reserves. Pay attention to maintenance plans. Your association’s financial health can affect more than monthly dues. It may affect buyer confidence, financing options, closing timelines, and future resale.
This is not meant to create fear around condos.
Condos can still be a beautiful option for first-time buyers, investors, busy professionals, empty nesters, and homeowners who want a lower-maintenance lifestyle.
But the process is becoming more detailed.
And when the process becomes more detailed, the right questions need to be asked earlier.
The unit matters.
The building matters.
The association matters.
The documents matter.
The questions matter.
Save this if you own a condo.
Share it with someone thinking about buying or selling one.
Kim Johnson
Your First Responder in Real Estate
KW ONEChicago
Licensed in Illinois & Ohio
kimjohnsonchicago.com
kimjohnsonsoakpark.com
Sources: Fannie Mae LL-2026-03; Freddie Mac Condominium Unit Mortgage FAQ
