Todd Hanley Mortgage Team

Condo Deal Check

The 2026 condo rules are too much to explain deal by deal. Run the checklist instead.

Answer the questions that actually decide whether a condo is financeable under the new Fannie Mae and Freddie Mac rules. You'll see the likely review path and the deal-killers as you go — then upload the HOA documents and I'll review them myself.

Want the full background first? Read the field guide →
1

The Project

Start here. Unit count and application date decide which rules apply at all.

The whole project — not the building, not the phase.
The rules phase in on specific dates. This picks the right ones.
2

The Master Association

This is the one that surprises people. A small condo project is not automatically easy if it sits inside a master community.

If there are amenities the condo shares with other buildings or neighborhoods — a clubhouse, pool, gate, marina, golf course — the answer is usually yes.
3

HOA Financials & Reserves

Reserves are where the 2026 rules got materially stricter. Weak reserves stop the loan regardless of how strong your buyer is.

Find the reserve/replacement line on the adopted HOA budget, divide by total annual assessment income. Leave blank if you don't have the budget yet.
It's stated in the study's funding plan section. "Baseline" means reserves are allowed to approach zero without going negative.
4

Insurance & Deductibles

New for 2026: a hard cap on the master policy's per-unit deductible, and a direct link between that deductible and the buyer's HO-6.

Look at the deductible schedule on the master policy declaration page. Not the per-occurrence deductible — the per-unit one.
Often called "all-in", "walls-in", or "single entity" coverage. If it's "bare walls", the answer is no.
For 2026 the roof must be insured, but it no longer has to be on a replacement-cost basis.
Freddie Mac now calls this out specifically. It matters most in coastal and hurricane-exposed markets.
5

Condition & Litigation

These are the hard stops. Neither agency will lend into an unresolved safety or structural problem.

Document delays are the single most common cause of a blown financing contingency on a condo.
6

The Documents

Check off what you already have, then upload it. Anything you leave unchecked comes to me as a "still needed" list — that's useful too, so don't wait until you have everything.

    7

    Send It To Me

    I'll read the documents myself and come back with a plain-English answer on whether this condo is financeable, what's missing, and what to ask the HOA next.

    Prefer to talk it through? Call or text (954) 806-5114.

    By submitting, you agree to receive communication from the Todd Hanley Mortgage Team about this condo review. No spam. Privacy Policy · Terms

    Why This Checklist Exists

    Fannie Mae and Freddie Mac are changing condo project review, reserve, and insurance rules through 2026 and into 2027. Some of it makes condo financing easier. Some of it makes a weak HOA a much bigger problem than it used to be.

    The practical effect for you is simple: condo deals now hinge on documents the HOA controls — reserves, reserve studies, insurance deductibles, special assessments, and project review type. If those documents show up late, they show up after your buyer has already spent money on inspection and appraisal.

    The change agents miss most often A 5–10 unit condo project can normally use the easy small-project review path. But if it belongs to a master association or larger development, that path is off the table for both agencies — and the lender may need to review the master association's budget, insurance, reserves, and litigation too.

    This checklist front-loads all of it. Run it before your buyer writes, and you'll know within a few minutes whether you're looking at a routine condo or one that needs a conversation first.

    The Dates That Change What Applies

    DateWhat changes
    March 18, 2026Expanded project review waiver for small projects; Florida PERS retirement; investor concentration retirement; several insurance updates take effect.
    July 1, 2026Master policy per-unit deductible rules must be implemented. Maximum allowable per-unit deductible is $50,000 per unit. HO-6 requirements tie directly to that deductible.
    August 3, 2026Limited Review (Fannie) and Streamlined Review (Freddie) are retired for applications dated on or after this date. Enhanced reserve study rules become mandatory.
    January 1, 2027Servicer insurance monitoring and annual borrower reminder requirements must be implemented.
    January 4, 2027Full Review projects must meet the new 15% reserve allocation requirement (up from 10%).

    Source: Fannie Mae Lender Letter LL-2026-03 and Freddie Mac Bulletin 2026-C. Full field guide with the before/after tables →

    Fannie vs. Freddie: Same Direction, Different Names

    You don't need to memorize agency terminology. You just need to know why two lenders might describe the same condo problem with completely different words.

    What it isFannie MaeFreddie Mac
    Small-project reliefWaiver of Project Review (10 or fewer units)Exempt from Review (2–10 units)
    Reduced review path being retiredLimited ReviewStreamlined Review
    Florida changeMandatory PERS retired for new/newly converted attached FL condosFlorida hurdles tied to Fannie CPM status removed
    Investor/occupancy change50% investor concentration limit retired for established projects50% owner-occupancy requirement retired for established projects
    Both agencies agree on the master association point For 5–10 unit projects, neither the Fannie waiver nor the Freddie exemption is available if the project is part of a master association or larger development. This is not a Freddie-only quirk.

    Questions Agents Ask Me About This

    Do I need every document before I send this in?+
    No — and please don't wait. Send what you have. The gaps are genuinely useful information: they tell me what to chase and whether the HOA is going to be a problem. A partial submission today beats a complete one after your inspection period closes.
    What if I don't know half these answers?+
    Mark them "Not sure." The tool tracks unknowns separately from problems, and the answers you're missing become the list of questions to send the HOA or listing agent. That list is often the most valuable thing this page produces.
    Is this a lender decision or a guess?+
    It's a screening tool, not an approval. It applies the published Fannie Mae and Freddie Mac rules to what you tell it. Actual project eligibility depends on the full condo questionnaire, the lender's own review, and documents I'd need to read. That's what the submission is for.
    Does my buyer need to be under contract?+
    The opposite — this works best before an offer. The entire point of the 2026 changes is that condo problems surface earlier, so you want to know about them before your buyer commits money and deadlines.
    Who sees the documents I upload?+
    Me. They're stored privately and used to review this specific project. These are HOA project documents — budgets, reserve studies, insurance declarations — not your buyer's personal financial information, and you shouldn't upload anything containing it here.
    What does it cost?+
    Nothing, and there's no obligation to send me the loan. Condo project reviews are a normal part of my work, and I'd rather you find out about a bad HOA from me early than from a lender's condo desk three weeks in.

    Send Me the Condo Before Your Buyer Writes

    Project name, address, and whether there's a master association is enough to get started. I'll tell you what you're actually dealing with.

    (954) 806-5114

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    Duration30 minutes
    WithTodd Hanley, RICP®