Over the last several weeks, we’ve shared updates around the evolving condominium financing landscape and the increased scrutiny being applied to condo projects nationwide. As Fannie Mae and Freddie Mac continue refining project review standards, these changes are becoming more visible in everyday transactions.

What does that mean for agents? Preparation matters earlier than ever.

Projects that previously qualified for conventional financing may now require a deeper review of association budgets, reserve funding, insurance coverage, deferred maintenance, pending litigation, and special assessments before financing eligibility can be determined.

Across the industry, lenders are seeing:

• Expanded condo project review requirements.

• Greater focus on HOA financial health.

• Increased insurance review standards.

• More detailed project eligibility tracking through agency systems.

• Continued tightening around projects with deferred maintenance or structural concerns.

The good news is buyers still have options.

For condominium projects that may not qualify for standard conventional financing, Key Mortgage also offers additional non-QM financing options. Depending on the scenario, financing may still be available through expanded guideline products designed for unique situations.

As these guidelines continue to change, early communication among agents, buyers, HOAs, and lenders can make a significant difference in keeping transactions moving smoothly and identifying concerns before they impact closing timelines.

If you have questions about a condo project, financing scenario, or would like a second look at a transaction structure, contact your Key Mortgage loan officer.