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Check the condo building before relying on financing

A condo purchase involves both the buyer and the building. Ask about project review before assuming a listed unit qualifies for your intended mortgage.

By Eric Hamilton · Published October 7, 2026

Originally uploaded March 26, 2025 · 2:14 · Watch on YouTube

Written companion added October 7, 2026. Adapted from Eric’s video captions with source checks; not a word for word transcript. The recording retains its original date.

Separate your approval from the building review

Eric raises concern about condo projects that do not meet financing requirements. Even a well qualified borrower can face a problem if the project fails the review required by the selected loan program. A unit being offered for sale does not prove that the building satisfies those requirements. Ask the lender which review applies to your proposed purchase.

Request the documents that explain the risk

Insurance coverage, repairs, association finances and other project conditions can affect eligibility. Ask your agent and lender what they need from the association and when they can review it. Owners considering a sale can start these conversations before listing. Clear information is more useful than assuming a high association fee alone tells you whether a property can be financed.

Understand what an adverse finding actually means

A project issue can narrow financing choices or require more review; it does not automatically make every unit unsellable or every loan impossible. Ask which specific requirement is unmet, whether there is an acceptable remedy and whether another legitimate financing route fits the buyer. Also discuss the building condition itself. Financing availability does not replace careful property evaluation.

Does a mortgage preapproval approve the condo building?

No. Borrower review and any required project review are separate parts of the transaction.

Does one financing denial mean no one can buy the unit?

Not necessarily. The result depends on the reason, the program and available alternatives. Ask for the specific finding.

Sources and scope

Adapted from the video published 2025-03-26. Historical figures, market descriptions and service examples are not current quotes, availability promises or forecasts.

  1. Fannie Mae: Project standards Accessed October 6, 2026

General education, not a loan quote, approval or an individual recommendation. Ask the appropriate professional about your situation.

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