Fannie Mae will eliminate its Limited Review process for all condominium loan applications dated on or after August 3, 2026. Most condo loans must now undergo a comprehensive Full Review of the project’s financial health and physical condition.
The previous abbreviated pathway allowed less intensive evaluations for certain loans, typically those with lower loan-to-value ratios.
The new requirement targets buildings with underfunded reserves, high insurance deductibles, or pending litigation. These properties may become harder to sell, potentially creating a two-tiered market.