When a lender won't finance a condo, it's usually the building, not the buyer. Here's what lenders check, what changed in 2026, and three plain-English books for owners, buyers and boards.
Why your condo can't get a mortgage, and what to do about it
The sale died at week three, and it was never about you. It was the building.
What to check before you buy a condo in the United States
Offer accepted, inspection fine, appraisal fine. Then the lender looks at the building.
A board's guide to keeping your condo financeable
No inspector. No fine. Just owners who cannot sell.
Most US mortgage lenders sell their loans on to Fannie Mae or Freddie Mac. Those two only buy a condo loan if the building, not just the buyer, meets their project standards. A building that meets them is called warrantable. One that doesn't is non-warrantable, and most ordinary mortgages are then off the table, however good the buyer is.
That's why a condo sale can fall over weeks in, after the offer, the inspection and the appraisal all went fine. The lender reviews the association: its budget, reserves, insurance, litigation and how the units are used. Much of that comes from a questionnaire the association fills in. The standard version is Fannie Mae Form 1076 / Freddie Mac Form 476.
Fannie Mae announced these changes in Lender Letter LL-2026-03, issued 18 March 2026:
| From | What changed |
|---|---|
| 1 July 2026 | The master policy deductible can be no more than $50,000 per unit (loan applications dated on or after this date). |
| 3 August 2026 | Limited Review is retired for established projects. They now need a Full Review or a Waiver of Project Review (loan applications dated on or after this date). |
| 4 January 2027 | Under Full Review, the minimum budget for replacement reserves rises from 10% to 15% of the association's annual budgeted assessment income. |
FHA loans run on HUD's own condo approval rules. HUD publishes a searchable list of FHA-approved condo projects, linked below.