If you are buying or selling a condominium in the Happy Valley area, the lending rules changed on September 1 in a way that directly affects closings. Fannie Mae and Freddie Mac have eliminated the limited condo project review, the shortened, faster path lenders used for many condo purchases. The practical result: most condo buyers now need a full project review before their loan can move forward. Here is what that means for your timeline, your paperwork, and your price.

What the limited review was

Until now, loans backed by Fannie Mae and Freddie Mac could take a streamlined route on many condo projects, with lenders reviewing a few key documents instead of the entire project file. That saved time and made condo purchases feel a lot like single-family closings. As of September 1, that fast track is gone for most purchases. The agencies now expect a full project review: the association's financials, insurance coverage, ownership ratios, and legal documents, all submitted and verified before the loan is approved.

The 15% reserve requirement coming by 2027

The second major change is about reserves. Lenders will be looking for replacement reserves funded at 15% of the association's budget, a target associations need to reach by 2027. What this means in practice is that a condo project's financial health, not just the unit you are buying, now sits at the center of your financing. Associations that have fallen behind on reserve funding may need time to adjust their budgets, and some may not clear the bar immediately.

What this means for buyers

If you are shopping for a condo, plan for a little more patience and a lot more documents. Your lender will need the project questionnaire, the master insurance policy, financial statements, and the association's budget and reserve study, so a listing cannot close until the association participates. Ask early whether the project has undergone a full review recently, and budget extra time before your expected move-in date. A well-run association with healthy reserves will breeze through; a stretched one may stall your timeline no matter how perfect the unit is.

Also check whether a project qualifies for a waiver of project review, which remains available for some smaller condominium projects. Not every purchase falls into the full review bucket, but you should not assume yours is one of the exceptions. Knowing which lane your project is in, before you make an offer, is the single best way to avoid a closing surprise.

What this means for sellers

For condo sellers, the new rules make your association the gatekeeper of your sale. Now is the time to confirm your HOA has the required documents ready to go: current financials, the reserve study, the insurance certificate, and the condo questionnaire completed accurately and promptly. If your board has not updated its paperwork in a while, or if reserves are below where lenders now expect them to be, address it before listing. Condos in projects that finance cleanly will outsell the ones that stall buyers, all else being equal.

The takeaway

The short version for the Happy Valley market: condo financing now rewards well-run associations with healthy reserves, and everyone involved needs to start the paperwork earlier. If you are considering a condo, ask us for the project's lending picture as part of your tour; if your HOA needs to catch up on its documentation, we will tell you honestly what it takes to get your unit sale-ready.