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Condo buying in 2026: review the building before the deadline

Buying a condo means taking on both a home and a share of the building’s financial responsibilities. Your personal preapproval does not settle the project review. Eric’s video explains why checking association documents early can prevent expensive surprises.

By Eric Hamilton · Published October 6, 2026

Originally uploaded August 21, 2026 · 12:27 · Watch on YouTube

Written companion added October 6, 2026. Adapted from Eric’s video captions with source checks; not a word for word transcript. The recording retains its original date.

Ask how the building pays for its next roof

Request the budget, reserve information, recent board minutes, insurance documents and details of special assessments or major repairs. A low monthly association fee can be less reassuring when necessary repairs have no funding plan. Ask what you would pay today and what could change after closing.

Separate today’s rules from January’s change

For Fannie Mae loans, Limited Review ended for applications dated August 3, 2026 or later. A qualifying review waiver remains possible for some small projects. Five to ten unit projects cannot use that waiver if they belong to a larger development or master association. For Full Review applications dated January 4, 2027 or later, the replacement reserve allocation standard rises from 10% to 15% of annual budgeted assessment income. An acceptable reserve study may provide an alternative under the applicable rules.

Read the insurance and rental details carefully

Fannie Mae’s updated requirements cap a master policy’s per unit deductible at $50,000 and require appropriate unit owner coverage when that deductible applies. Have an insurance professional check the actual protection and gaps. The retirement of a particular investor concentration limit is not a repeal of association rental rules or all project eligibility requirements.

Plan for your eventual buyer too

If the project has a financing problem, ask what caused it, what will fix it and who is responsible. A different loan program may provide another option, but it does not repair the building or guarantee easy resale. Compare the ownership costs and likely future financing options before committing. Sellers can begin this document review before listing.

Does a review waiver mean the building is automatically eligible?

No. Basic requirements still apply, including relevant insurance and project status checks.

Does failing one condo review rule out every mortgage program?

Not necessarily. Program requirements differ. Ask which requirement failed and have any alternative evaluated without assuming approval or a resale outcome.

Sources and scope

Rules checked October 6, 2026. The dated standards summarized here are Fannie Mae requirements. Freddie Mac, FHA, other programs and lender policies need their own review.

  1. Fannie Mae: Lender Letter LL-2026-03 Accessed October 6, 2026
  2. Fannie Mae: General information on project standards Accessed October 6, 2026
  3. Fannie Mae: Full Review process 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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Your next questions

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