09/09/2026
🏢 If you own a condo in Louisiana and there’s a chance you’ll be selling within the next 12 months, this is something you need to know before you put it on the market. 👀
A lot of condo owners assume financing won’t be an issue. After all, there may be nothing wrong with the unit itself, and the buyer may have great credit, solid income, and everything needed to qualify for a mortgage. 💳🏡
But with a condo, the lender isn’t only approving the buyer—they’re also reviewing the entire condo project. 🔍
Fannie Mae and Freddie Mac recently tightened their condo project review requirements. Under the new rules, condo projects with more than 10 units may be subject to a full project review before financing can be approved.
That means lenders can look closely at the association’s financials, including:
💰 The association’s budget
🏦 Reserve funds
🛡️ Insurance coverage
📋 Reserve studies
⚖️ Pending litigation
Reserve requirements are also changing, increasing from 10% to 15% of the annual budget, with additional requirements expected in January 2027. 📈
So why should you care if you’re the seller? 🤔
Because if your condo association doesn’t have adequate reserves or hasn’t kept up with required financial planning and reserve studies, the project could have trouble passing a lender’s review. 🚨
And if the project isn’t eligible for conventional financing, a perfectly qualified buyer may still be unable to get their loan approved for your condo. ❌🏠
Suddenly, you’re not just dealing with a financing delay. You could have:
👥 Fewer eligible buyers
⏳ A longer time on the market
💔 Contracts that fall apart
💰 Potential issues getting your condo sold
And this can happen even though there’s nothing wrong with the buyer or your individual unit.
That’s why I’ve started asking condo owners a couple of important questions:
❓ Do you know what percentage of your association’s budget is going toward reserves?
❓ Do you know when your association last completed a reserve study?
Most owners don’t—and that’s understandable because it probably wasn’t something you needed to think about when you bought your condo.
But if you’re considering selling this year or next, these are questions worth asking before you list—not after you’re under contract and discover there’s a financing problem. ⚠️
📲 Give me a call before you put your condo on the market. We can take a look at where your project stands and identify potential conventional financing issues before they become a problem for your buyer—and your sale. 🏡🔑
