09/17/2026
Major condo financing changes are here!
If you’re buying, selling, or financing a condo, here’s what you need to know:
Financing for smaller condo buildings (2–10 units) just got easier. These projects now qualify for a simplified review process, which means less paperwork, fewer hurdles, and a smoother financing experience for many buyers.
Larger condo projects (11+ units) will now require a Full Project Review.
Another important change is coming: Beginning January 4, 2027, many larger condo associations will need to allocate 15% of their annual budget to reserves, up from the current 10%, to remain eligible for conventional financing. If a building doesn’t meet this requirement, it could become non-warrantable, meaning:
• Buyers may not qualify for a conventional loan
• Buyers may need cash or expensive specialty loans
• This could lower property values in the building .
If you own a condo, talk to your property manager or HOA board now about increasing reserve contributions to 15% before 2027.
Whether you’re buying, selling, or representing clients, reviewing a condo association before going under contract can help avoid surprises, delays, and financing issues down the road.
