For years, buying a condominium with conventional financing was often a relatively straightforward process. If the buyer qualified and the condominium met certain criteria, many loans were eligible for a simplified project review.

That has changed.

As of August 3, 2026, Fannie Mae and Freddie Mac implemented significant updates to their condominium lending guidelines that will affect buyers, sellers, Realtors, lenders, and condominium associations across the country. While these changes apply nationwide, they are especially important here in Southwest Florida, where condominiums make up a large percentage of our housing market.

If you’re considering buying or selling a condo, here’s what you need to know.

Why Did the Rules Change?

Over the past several years, Fannie Mae and Freddie Mac have increased their focus on the financial and structural health of condominium communities.

Following the tragic Surfside condominium collapse in 2021, lenders and investors began placing much greater emphasis on issues such as:

• Deferred maintenance
• Structural integrity
• Adequate reserve funding
• Insurance coverage
• The overall financial health of condominium associations

The goal is simple: reduce risk by ensuring that buyers aren’t purchasing into communities facing significant financial or structural challenges.

What Changed?

One of the biggest changes is the elimination of the simplified project review process that many condominium purchases previously qualified for.

Going forward, many more conventional loans will require a Full Project Review.

Instead of simply evaluating the borrower’s qualifications, lenders must also perform a more detailed review of the condominium association itself.

This review may include:

• HOA financial statements
• Annual budgets
• Reserve funding
• Master insurance policies
• Pending litigation
• Special assessments
• Structural or maintenance concerns
• Occupancy information
• Additional project documentation

Simply put, the condominium itself has become a much larger part of the approval process.

What Does This Mean for Buyers?

If you’re purchasing a condominium, these new requirements could result in:

Longer Closing Times

Because additional documentation must often be obtained directly from the condominium association, underwriting may take longer than buyers have experienced in the past.

More Documentation

Associations may be asked to provide documents they have never previously been required to produce for certain loans.

Some associations respond quickly.

Others may require several weeks.

Some Projects May Not Qualify

Even if you have:

• Excellent credit
• Strong income
• Plenty of assets

your financing could still be affected if the condominium association does not meet Fannie Mae or Freddie Mac’s eligibility requirements.

That’s why evaluating the project early has become more important than ever.

There Is Good News Too

Not every change makes financing more difficult.

Fannie Mae and Freddie Mac also revised certain project eligibility requirements that may actually allow financing in some condominium communities that previously had difficulty qualifying.

The agencies have removed or modified certain investor concentration limitations for many established projects and expanded review flexibility for some smaller condominium developments.

In other words, while some condos will face additional scrutiny, others may actually benefit from the updated guidelines.

Why This Matters in Florida

Florida has one of the largest condominium markets in the United States.

Many communities are:

• Older
• Managing rising insurance costs
• Completing required structural inspections
• Funding new reserve requirements
• Addressing deferred maintenance

Because of these factors, Florida buyers are more likely to feel the impact of these new lending standards than buyers in many other parts of the country.

Three Things Every Condo Buyer Should Do

1. Talk to Your Lender Before You Make an Offer

Not every lender approaches condominium financing the same way.

Having an experienced lender review the project early can identify potential issues before they become expensive problems.

2. Request HOA Documents Early

Waiting until the last minute to obtain condominium documents can delay closing.

Whenever possible, these documents should be requested early in the transaction.

3. Understand That You’re Buying Into a Community

When purchasing a condominium, you’re not just buying four walls.

You’re also buying into:

• The financial health of the association
• The insurance coverage
• The reserve funding
• The long-term maintenance of the property

Those factors now play an even larger role in obtaining financing.

Advice for Sellers and Realtors

If you’re listing a condominium, preparation is more important than ever.

Having key HOA documents readily available can help buyers and lenders move through the financing process more efficiently.

For Realtors, discussing financing with the buyer’s lender early in the transaction can help avoid surprises during underwriting and keep contracts on schedule.

My Advice

I’ve always believed that one of the best ways to serve my clients is by identifying potential obstacles before they become real problems.

These new condominium guidelines don’t mean buyers should avoid condos.

Far from it.

They simply mean that preparation matters more than ever.

By reviewing a condominium project early, asking the right questions, and working with experienced professionals, many of these challenges can be addressed before they ever threaten your closing.

Let’s Make Sure Your Condo Purchase Starts on the Right Foot

If you’re considering buying a condominium anywhere in Venice, Sarasota, North Port, Englewood, Port Charlotte, or the surrounding Southwest Florida area, I’d be happy to review the project before you make an offer.

A brief conversation upfront could save you weeks of delays—and help you move forward with confidence.

Kevin Corbett
Mortgage Advisor
Gulfside Mortgage Services, powered by The Mortgage Firm

📞 Let’s review your financing options before you write your offer.