Condos · 5 min read
Why does my condo loan need a full project review now?
August 7, 2026 · Written by Bill Egan, NMLS 7342
Short answer
Because Fannie Mae and Freddie Mac retired the old shortcut reviews. For loan applications dated on or after August 3, 2026, most established condo buildings have to pass a full project review — budget, reserves, insurance, and lawsuits — not a light questionnaire. A few small projects can still skip that. The building can fail even if you look perfect on paper.
01
Why this comes up
You found a condo you like, and someone said financing would be easy because the building has been around a long time. Then the lender asked for a long packet from the homeowners association instead of a short form. You called because earnest money is already in and nobody can tell you if the building will even pass.
02
Where this goes wrong
The shorter review is gone, so the association papers, budget, insurance, and reserve study show up late. The underwriter — the person who has to say yes to the loan — sees thin savings in the building account, a lawsuit, or too many rented units, and the investor will not buy the loan. Your rate hold is running out. The seller will not give you more time. You either switch to a different kind of loan, or you walk away from a deposit on a unit that was never going to close on regular terms.
03
What we do about it
At Egan Financial Group LLC (NMLS 2647764) we start looking at the building when we start looking at you, not the week of closing. We ask for the association packet on day one and tell you if the building is the problem before you are stuck. We approve the loan and send the money here, so that answer is not waiting in a long line at a national condo desk.
04
How to get ready
Get the management company’s name the day you sign the contract. Ask for the questionnaire, the current budget, the insurance certificate, and any reserve study. Ask about lawsuits, unpaid dues, and how many units are rented. If the association is slow, say so before you ask us to hold a rate for only a short time. Your credit can be fine and the building still has to pass.