Tower Crossing Condominium Homes

Condo Corner: Critical Repairs & Special Assessments

🏢 Condo Owners: Your HOA’s Repairs May Now Affect Your Property Value and Loan Options

If you own a condo or co-op unit, there’s a major policy change you need to know about — and it could directly impact your ability to sell or refinance your home.

As of September 18, 2023, both Fannie Mae and Freddie Mac have introduced new lending rules that target buildings with critical repairs, safety issues, or large unfunded special assessments. The goal is to improve safety and sustainability — but many owners are being caught off guard.

🚨 What Changed?

Your building must now meet stricter standards to qualify for conventional mortgage financing — the most common loan type for buyers and refinancers.

If your HOA fails to provide proper documentation or if your building has:

  • Unfunded repairs over $10,000 per unit
  • Significant deferred maintenance
  • Safety-related evacuation orders
  • Critical structural or mechanical issues

Then your unit may be unfinanceable — meaning buyers can’t get a loan to purchase it, and refinancing becomes nearly impossible.

🧩 Why This Matters to YOU

✔️ Planning to sell? Your buyer won’t be able to close with a conventional loan unless the HOA’s disclosures and repair status are clean and updated.

✔️ Looking to refinance? If your building has flagged issues, you may be denied — even with great credit.

✔️ Not moving anytime soon? Your property value could drop if your building becomes ineligible for financing, leaving you with fewer buyers in the future.

đź“ť What You Can Do as a Unit Owner

Here’s how to stay proactive:

  1. Ask your HOA directly:
    • Are there any unfunded repairs over $10,000 per unit?
    • Have any structural or mechanical inspections been done in the past 3 years?
    • Is the building flagged for “critical repairs” or deferred maintenance?
  2. Request transparency:
    • The HOA should disclose all special assessments, repair plans, and building status.
  3. Attend board meetings and ask whether your building is compliant with the new Fannie Mae/Freddie Mac guidelines.
  4. Encourage the board to update their certifications in Fannie Mae’s Condo Project Manager (CPM) or Freddie Mac’s Condo Project Advisor systems.

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