This week marks the implementation of updated Fannie Mae and Freddie Mac condominium project review requirements. While much of the conversation has centered around the retirement of Limited Reviews, the changes go well beyond that. Lenders will now take a more comprehensive look at condominium projects, including financial strength, insurance coverage, reserve funding, deferred maintenance, and overall project eligibility.

The good news? With a little preparation, these updates can lead to an even smoother financing experience. Here are a few ways to set your next condo transaction up for success:

• Identify condo properties early and involve your lender as soon as possible.
• Encourage sellers or HOA management to have project information readily available should it be needed during the financing process.
• Set expectations with buyers that condominium financing now includes a more comprehensive project review.
• Partner with a lender who is prepared for the new requirements and can help navigate the process from the very beginning.

These updates are designed to create greater consistency across the industry while ensuring that buyers are purchasing into financially sound communities. Although the review process is evolving, the goal remains the same — we want to help buyers achieve homeownership with confidence.

At Key Mortgage, we’ve been preparing for these changes well ahead of their implementation. We’ve been testing the new review process, educating our loan officers, and working closely with our operations teams to ensure we’re ready to support you every step of the way.

Questions about a condo transaction? Reach out to a Key Mortgage loan officer. We’re here to help make navigating these new requirements simple, so you can stay focused on helping your clients reach the closing table.