Should I Sell My Condo Now? What HOA Financing Changes Mean for Sellers

If you own a condo and have been thinking about selling, there are important financing changes worth understanding. Condo financing requirements changed in August 2026, and additional changes are scheduled for January 2027.

What changed in August 2026

As of August 3, 2026, Fannie Mae retired its Limited Review process for applicable condo loans, and Freddie Mac similarly stopped allowing Streamlined Review for applications received on or after that date. More condo purchases may now require a more detailed review of the HOA and the overall condominium project.

That means the lender is not only reviewing the buyer's income, credit, and down payment. They may also look closely at the financial and physical health of the entire HOA.

What the HOA review can include

• HOA budget and reserve funding
• Insurance coverage
• Deferred maintenance and repairs
• Special assessments
• Delinquent HOA dues
• Required inspections and other project documentation

I've seen this affect a closing firsthand

I recently had a buyer in escrow on a condo where too many homeowners were delinquent on their HOA dues. The buyer was qualified, but the HOA issue became a financing problem. We had to get the situation addressed before the lender could fund the loan and we could close escrow.

Another change is coming in January 2027

Beginning with certain loan applications dated January 4, 2027, Fannie Mae and Freddie Mac are increasing reserve funding requirements for many condominium associations. For many projects, the minimum budget allocation toward replacement reserves is increasing from 10% to 15% of annual HOA assessment income.

If your HOA is already operating with limited reserves, deferred maintenance, or other financial concerns, this is something worth looking into before deciding when to sell.

Should you sell before January?

Not necessarily. Every condominium building and every HOA is different. But if selling has already been on your mind, now is a good time to find out where your HOA stands.

Questions to ask your HOA

• What percentage of our HOA budget is going into reserves?
• Do we have a current reserve study?
• Are there upcoming major repairs?
• Are any special assessments being discussed?
• Are a significant number of owners behind on their HOA dues?

The more you know before listing, the fewer surprises you may face once you have a buyer in escrow.

Thinking about selling your condo?

Call Nancy to discuss your condo and your options. I can help you look at your current market value, talk through what is happening with your HOA, and discuss whether selling now or waiting makes sense for you.