The Financing Rules Are Changing. Homeownership Doesn't Have To.
Beginning August 3, some of the biggest changes to conventional condo financing in years will take effect.
If you've heard the headlines, you may be wondering...
"Should I avoid buying a condo?"
"Will my condo still qualify?"
"Is financing about to become impossible?"
Before you decide condos are off the table, let me reassure you.
After nearly 40 years in the mortgage business—and thousands of successful condo closings later—I can confidently tell you this: We've been here before.
And every time the rules have changed over the past four decades, one thing has stayed the same: People still found a way home.
Beginning August 3, some transactions will require a little more planning. Some condo projects will need additional documentation. But this is not the end of condo financing.
Not even close.
In fact...
Yes, you CAN condo!
Why Are the Rules Changing?
A few years ago, the heartbreaking condominium collapse in Surfside, Florida, changed the conversation nationwide about the long-term financial health of condominium communities.
As tragic as that event was, it prompted lenders, investors, and housing agencies to take a closer look at how condominium projects are reviewed.
The goal isn't to make buying a condo harder.
The goal is to help ensure communities are financially prepared to maintain their buildings, complete necessary repairs, carry appropriate insurance, and protect homeowners for years to come.
After nearly four decades in this business, I've seen just about everything this industry can throw at us.
I understand why these changes are happening.
And I also know this...
Change doesn't have to mean panic.
So...What's Actually Changing?
Don't worry—you don't need to memorize hundreds of pages of underwriting guidelines.
That's my job.
Here's what matters most.
For many years, certain conventional condo loans could qualify through what's called a Limited Review. Think of it as a streamlined approval process that required less documentation from the homeowners association.
Beginning August 3, many of those transactions will instead require a Full Review.
A Full Review takes a deeper look at things like:
- The HOA’s budget and financial strength
- Reserve funding for future repairs
- Insurance coverage
- Ongoing maintenance
- The overall health of the condominium association
In other words ... the focus shifts from simply approving an individual loan to making sure the community itself is financially healthy.
Some condo projects that qualified under previous guidelines may require additional documentation. Others may qualify under different financing options instead.
Those are significant changes.
But they're only part of the story.
We've Actually Seen This Before
Here's something many people don't realize.
When I first entered the mortgage business nearly 40 years ago, every condo went through what we now call a Full Review.
There weren't Limited Reviews. There weren't streamlined options. We gathered the documentation. We reviewed the project. We figured it out.
Over time, the guidelines evolved. Limited Reviews became available, allowing many transactions to move through a faster approval process.
Now we're returning to a more comprehensive review for many conventional loans.
Is it different? Absolutely.
Is it impossible? Not even a little.
To me, this doesn't feel like learning something brand new.
It feels like dusting off skills I've been using throughout my career.
Here's the Part Most People Aren't Talking About
Every time lending guidelines change, it creates a little anxiety for the masses: "I guess condos are impossible now."
I've heard that before.
When reserve requirements changed.
When appraisal rules changed.
When condo questionnaires became more detailed.
When interest rates climbed.
Each time, understandable, people wonder if the sky is falling.
It isn’t.
The mortgage industry adapts.
And so do we.
Headlines grab attention. Solutions change lives.
That's where experience matters.
There Is Almost Always a Path Forward
One of the things I love most about mortgage lending is solving puzzles. Sometimes the first answer isn't the final answer.
Maybe a condo doesn't qualify under one conventional program. That doesn't automatically mean the buyer can't purchase it.
Sometimes the solution is FHA.
Sometimes another conventional loan still works beautifully.
And today, we have more financing options for non-warrantable condos than ever before – and that’s exciting!
What does "non-warrantable" mean?
Simply put, it's a condo project that doesn't meet all of the traditional conventional lending guidelines.
Years ago, that often meant buyers had very few choices.
Today, many lenders—including specialized programs—offer financing for certain projects that don't fit the standard conventional box. And, yay! It means more buyers have options!
Every condo has its own story.
Every buyer has different goals.
Every financing solution deserves a fresh look before anyone says, "No."
One of my favorite parts of this job is helping people discover that what looked like a dead end was actually just a different road home.
My First Condo Changed Everything
People sometimes ask why I'm so passionate about condo financing.
The answer goes all the way back to my very first home. I was twenty years old. It was a condo. Colonial Gardens—Unit 8B.
Ironically, it was considered a non-warrantable condo.
Long before most people had ever heard that phrase.
I remember diving into the guidelines, asking questions, researching every option, and learning everything I could about condo financing because I wanted to understand how these unique properties worked.
Looking back ...
I had no idea that little condo would shape the next four decades of my career.
Today, when a Realtor or buyer calls and says,
"Sharla...I think we have a condo problem..."
I smile.
Not because problems are fun.
Because I've learned that most of them have solutions.
Experience Matters More Than Ever
Over the years we've...
- Reviewed HOA documents before offers were ever written.
- Identified insurance issues early enough to save transactions.
- Found financing alternatives when conventional guidelines weren't the best fit.
- Celebrated buyers who thought they'd lost their dream home—only to discover another path they never knew existed.
That's what experience looks like.
Not knowing every answer immediately.
Knowing where to look...
Who to call...
What questions to ask...
And refusing to give up after the first obstacle.
Those moments are why I love what I do.
One of My Favorite Tools: Condo Pre-Reviews
One of the biggest opportunities these new guidelines create is something I've encouraged for years.
Let's review the condo before you write the offer.
Instead of waiting until you're under contract, let's review the project early.
At Fairway, we can often complete a preliminary review of the available condo documentation before you're fully committed.
Sometimes that identifies questions early. Sometimes it confirms everything looks great.
Either way, it's far easier to solve problems before there's a moving truck waiting outside.
A little planning on the front end can save everyone time, stress, and uncertainty later.
My Motto Hasn't Changed
If you've worked with me before, you've probably heard me say it.
There's always a way.
Now, that doesn't mean every condo qualifies. Or every loan gets approved.
But it does mean we don't stop at the first obstacle.
We ask another question. We explore another loan program. We review another option. We solve the puzzle together.
That's how we've helped thousands of families become homeowners over the years.
And that's exactly how we'll approach these new guidelines.
Lean on Me
One of my favorite Continuing Education classes that I teach for Realtors is called Yes, You CAN Condo!
Because condo financing truly is its own specialty.
Every project is different. Every homeowners association is different. Every buyer's situation is different.
On August 20, I'll be teaching a special CE class covering these new condo guidelines in detail, along with practical strategies to help Realtors navigate them with confidence.
If you're a Realtor and would like an invitation, send me a DM. I'd love to have you join us.
And whether you're attending the class or not ...
Know this.
If you're buying a condo, selling a condo, helping a client purchase one, or simply wondering whether a particular project will qualify...
Call me first.
Let's review it together. Let's answer questions early. Let's explore every available option before assuming the answer is no.
Because today's answer may be very different than you expect.
The rules may change.
My commitment to helping people become homeowners never will.
And more often than not ...
Yes, you CAN condo!
Because every dream deserves a Dream Team. 💛
— SE
