A major shift in condo lending is underway—and it’s threatening the condominium market.
In mid-March, government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac announced new guidelines that will eliminate the widely used “Limited Review” process starting in August and increase reserve funding requirements in 2027.
On paper, this is about reducing risk. In practice, it means more documentation, more scrutiny and fewer condos qualifying for conventional financing. It's a seismic shift that could rock the U.S. condo market.
Here in Washington, DC, this matters more than most markets. Many older condo buildings already struggle with underfunded reserves, inadequate insurance and/or deferred maintenance, to name just a few of the requirements about to become more stringent. The result? Some properties that were easily financeable before will become much harder to sell.
This is a sudden shift that will have great impact, felt building by building, sale by sale. For buyers and sellers, the implications are longer timelines, fewer loan options and loan denials. I break down exactly what’s changing and what to watch for in my full post.
Change is coming. Find out how it affects you.
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