Limited Condo Reviews Still Exist, Just Not at the Agencies

On August 3, 2026, the mortgage industry quietly lost its favorite shortcut. Fannie Mae and Freddie Mac retired the limited condo review, the streamlined project approval that let many condo loans skip a deep audit of the HOA's finances. Every conventional condo loan in an attached building with more than 10 units now takes the full exam, and plenty of buildings that closed loans smoothly in July stopped passing in August, through no fault of the buyer.

But here's the part the "cash only" listings haven't caught up with: the limited review didn't die. It moved. Specialty lenders we work with in the wholesale channel still approve condo projects off a 2-page questionnaire, with as little as 15% down on a primary home. Here's what those terms actually look like.

What happened to the limited condo review?

Fannie Mae (Lender Letter LL-2026-03) and Freddie Mac (Bulletin 2026-C) both retired their limited and streamlined review paths effective August 3, 2026, for attached condo projects with more than 10 units. Small-project waivers and detached site condos kept their carve-outs, but for the typical condo building, every agency loan now requires a Full Review: the 8-page Form 1076 questionnaire with the post-Surfside addendum, and the budget, reserve, insurance, and litigation files behind it.

That review has teeth. A project fails if more than 15% of units are 60 or more days behind on dues, if the budget's reserve line sits under 10% of dues income (absent a compliant recent reserve study), if the HOA earns more than 10% of its budget from things like cell tower leases or paid parking, or if the master policy's per-unit deductible tops $50,000. And the reserve floor rises to 15% on January 4, 2027, which will push another wave of older buildings out. The underlying rules live in Fannie Mae's Selling Guide project standards and Freddie Mac's Guide Chapter 5701 if you want the source material. We unpacked the whole rule change in why is my condo suddenly non-warrantable. The short version: a wave of buildings didn't change at all in August, but their conventional financing did.

Can you still get a condo loan with a limited review?

Yes. The agencies retired their version, but the limited review lives on with the portfolio and non-QM lenders in the wholesale channel (non-QM means loans written outside the agency rulebook; portfolio lenders keep loans on their own books). These are the same specialty lending partners behind the program on our non-warrantable condo loans page. Their project review is a 2-page HOA questionnaire. Not an 8-page form with an addendum, not a records request that makes the property manager open the vault. Two pages.

That difference is practical, not cosmetic. Property managers routinely charge $300 or more for a full-review document package and can take weeks to deliver it. The 2-page form often comes back sooner.

What does the 2-page review skip?

The short questionnaire covers the basics of the project. What it never asks for:

• The HOA budget. No reserve-line math, no 10% test, no 15% test coming in January.
• A reserve study. Older buildings don't have to produce one.
• Delinquency percentages. Nobody counts how many owners are behind on dues.
• The inspection-history battery. No hunt through years of maintenance records.

Notice what those four have in common: they're the exact line items where the new agency review kills deals.

What are the terms on a limited-review condo loan?

Here's what the program we place through our specialty lending partners looks like as of this writing:

• Down payment: as little as 15% on a primary home.
• Second homes and investment properties: 20% to 25% down, with loan-to-value limits that vary by scenario (lower in Florida).
• Commercial space: allowed up to 50% of the project, versus the agency cap of 35%.
• Litigation is workable when claimed damages stay under 25% of the HOA's reserves (the agency line is 10%), or when the HOA's insurer confirms in writing that it's defending the case.
• Mandatory club or amenity memberships get a case-by-case look at underwriter discretion.

Primary, second home, and investment occupancy are all eligible. Investment loans carry no project owner-occupancy ratio requirement (you still certify your own occupancy on the application, like any loan), and investor-heavy buildings are fine.

Programs, rates, and terms are subject to change without notice. This is not a commitment to lend, and all loans are subject to credit approval and program guidelines.

What won't a limited review fix?

We'd rather you hear the limits from us than discover them in underwriting.

Start with price. Non-QM pricing typically runs above agency pricing, so if a building can pass the full review, a conventional loan usually wins on price and we check that lane first.

The building still has to be finished and sold. Established projects generally need about 90% of units sold and closed, new projects need roughly 75% pre-sold, and the project or legal phase must be 100% complete. Some property types don't work anywhere, including here: condotels and hotel-operated buildings, timeshares and fractional ownership, assisted living, and mobile homes. Serious structural litigation is a no at the agencies and at our partners alike.

And the honest line: a building with genuine structural or safety problems is not financeable, period, and shouldn't be. This program helps buildings that fail the agency review on paperwork and financial line items, not buildings that are actually unsafe.

Who actually needs this?

Four people keep calling us about it:

• The buyer told "cash only." The listing agent isn't wrong about the agency rules, just about the alternatives. If the building's problem is a thin reserve line or a busy ground-floor retail strip, financing may still exist.
• The investor. No project owner-occupancy ratio to clear, no delinquency counts, and buildings full of other investors are fine. If qualifying income is the other hurdle, we also arrange DSCR rental loans that qualify on the rent instead of tax returns.
• The seller whose building failed review. If your buyer pool just shrank to cash, being able to hand agents a financing option can put contracts back on the table.
• The borrower with a dead agency deal. If your conventional loan collapsed mid-escrow after August 3, the fastest question to answer is whether the failure was financial paperwork or safety. The first kind can often be saved.

What should you do next?

The agencies didn't make condo buildings riskier on August 3. They made the paperwork harder, and a lot of good buildings can't produce it. The limited review still exists; it just moved to the non-QM and portfolio channel that works through brokers like us. The full program detail lives on our non-warrantable condo loans page. When you're ready, request a custom rate quote with the property address and we'll tell you which lane the building is in. No SSN and no credit check required to see your options.

FAQ

Did Fannie Mae and Freddie Mac really eliminate the limited condo review?

Yes. Effective August 3, 2026, both agencies retired the limited and streamlined review paths for attached projects with more than 10 units, so those conventional condo loans now require a full project review. Small-project waivers and detached site condos are the main exceptions.

How much do I need to put down on a limited-review condo loan?

As little as 15% on a primary home, and 20% to 25% on second homes and investment properties, depending on the scenario. Guidelines change and every file is a little different, so treat these as starting points and we'll confirm what applies to yours.

Do I need the HOA's budget or reserve study?

No. The limited review we place through our lending partners doesn't ask for the budget, a reserve study, or delinquency counts, and the insurance review is lighter (we still collect the standard certificate). The 2-page HOA questionnaire is typically much quicker for a property manager to turn around than a full-review package.

Will this work for a condotel or timeshare?

No. Condotels, hotel-operated projects, timeshares, fractional ownership, assisted living, and mobile homes are ineligible with the agencies and with our specialty partners. If a building runs like a hotel, this isn't the fix.

My building failed the agency review. Does that mean it's unsafe?

Usually not. Most post-August failures are financial line items: a reserve allocation under the new floor, too many owners behind on dues, or too much commercial income. Those are paperwork problems a limited review can get past. A building with real structural or safety issues is a different story, and it isn't financeable anywhere, including with us.