Condo financing has become a bigger part of the conversation lately, and it’s not going away. With more visibility into project approvals and stronger lending standards, there’s a lot more clarity, if you know where to look. And this isn’t just a city issue, suburban agents are navigating it too, whether it’s a high-rise or a townhome-style condo.

Condominiums represent over 25% of our overall production, which means we don’t just see these nuances — we help navigate them every day. And right now, being informed upfront is what separates smooth transactions from avoidable surprises.

Here’s what matters most:

1. Project approval status matters more than ever.

Fannie Mae and Freddie Mac have significantly enhanced how condo projects are reviewed, and they’re sharing more data than ever before. There is now a real-time project database that identifies whether a condo is approved, awaiting review, or ineligible.

What’s changed:
Projects are being flagged faster and staying flagged longer, especially if there are insurance gaps, deferred maintenance, or structural concerns.

2. HOA financial health is under a microscope.

This has always mattered, but expectations have tightened.

Key factors include:

• • Owner occupancy levels.
  • HOA delinquency rates (anything above 15%+ is a concern).
  • Minimum 10% reserve funding.

What’s changed:
Lenders are taking a deeper look at budget strength and reserve adequacy, with more consistency across reviews.

3. Insurance & structural scrutiny are driving decisions.

This is one of the biggest shifts we’re seeing.

What’s changed:

• Insurance requirements have tightened.
• Projects with insufficient coverage or high deductibles are being flagged.
• Deferred maintenance and structural concerns are under increased review.

4. Unreviewed & expired projects = opportunity

This is where preparation creates an advantage.

What’s changed:
More projects are sitting in “unreviewed” or “expired” status simply because they haven’t gone through the updated review process.

What this means for you:

• Partner with your Key Mortgage loan officer.
• Identify these projects early.
• Work toward getting them reviewed and positioned for financing.

In some cases, this can create a more defined buyer pool and a clearer strategy for positioning your listing.

Before your next condo listing, or before your buyer moves forward, connect with your Key Mortgage loan officer. We’ll help you understand the project before it becomes a question. If you’re not currently connected with a Key Mortgage loan officer, your managing broker can help make the right introduction.