Beginning August 3, 2026, several condominium financing guideline changes went into effect that will make condominium project approval even more dependent on the financial strength and documentation of the condominium association.
While some recent updates simplify financing for certain projects, the overall trend is clear:
Successfully financing a condo today requires evaluating not only the borrower—but the condominium project itself.
The major changes that went into effect Aug. 3 are:
• Full condominium project reviews will become the new standard.
• The current “Limited/Streamlined Review” option is being eliminated for projects that do not qualify for a “Review Exempt” status.
What this means for buyers and their real estate agents:
1. More condominium transactions will require a comprehensive project review.
2. Additional HOA documentation may be required before financing can be approved.
3. Starting the financing process early will become increasingly important to avoid delays.
In addition, reserve study requirements are becoming stricter. For associations using a reserve study to demonstrate financial strength, HOA budgets must now fund reserves at the highest amount recommended by the reserve study.
And, the “Baseline Funding Method” (allowing reserve balances to temporarily fall below zero) will no longer satisfy agency requirements. These changes place even greater emphasis on well-managed condominium associations with healthy reserve funding.
Several changes will simplify financing like in the case of condominium projects with up to 10 units may now qualify for a review exempt status, provided there are no critical repairs, and the project isn’t classified as unavailable.
Another less restrictive change is that on investment property financing, the previous requirement that 50% of units in established condominium projects be owner occupied has been eliminated for investment property financing.
Lauren Bunting is a Broker with Keller Williams Realty of Delmarva in Ocean City, Maryland.
