The Condo Lendability Checker
How the checker works
A conventional lender reviews two things before approving a condo loan: you, and the building. The building half is called the project review. Fannie Mae’s Selling Guide lists the conditions that make a project ineligible, and most jumbo and non-QM lenders ask about the same things, even when their limits differ. The checker asks about each one and shows where your answers point.
Each answer feeds four loan paths: conventional (conforming and high-balance, up to $1,249,125 in LA County in 2026), jumbo, non-QM and portfolio, and cash. A path gets one of three labels. “Nothing flagged” means none of your answers touched that path’s known tests. “May need attention” means an answer matches a condition the lender may look at closely. “Ask the lender” means the rules belong to the lender, so only they can answer. It never says a building passes or fails. A lender’s review decides that, with the HOA’s documents in hand.
The rules behind each question
| Question | Conventional rule (Fannie Mae, as of Oct 27, 2026) |
|---|---|
| Units | 2 to 10 units may qualify for a Waiver of Project Review (since March 18, 2026). 11 or more units get a Full Review (since August 3, 2026). |
| Reserves | 10% of budgeted assessment income for applications dated before January 4, 2027; 15% on or after, unless the budget funds the reserve study’s highest recommendation. |
| Special assessment | An assessment for a critical repair that isn’t finished can make the project ineligible. Assessment income doesn’t count toward reserves. |
| Critical repairs | Includes failure of a mandatory state or local inspection, unfunded repairs over $10,000 per unit due within 12 months, and named items such as balconies and parking structures. |
| Litigation | Cases about safety, structure, habitability or use can fail the review, with narrow exceptions. |
| Delinquency | More than 15% of units 60 or more days behind. |
| Commercial space | More than 35% of the project. |
| Single owner | More than 20% of units in buildings of 21 or more; more than 2 units in buildings of 5 to 20. |
| Hotel or rental use | Condo-hotel features, such as hotel services or a short-term rental operation, can make the project ineligible. |
In Los Angeles the repair question is where state and city law come in. SB 326 (Civil Code 5551) requires HOAs in buildings with 3 or more attached units to have a licensed engineer or architect inspect a sample of wood-supported balconies, decks, stairs and walkways more than 6 feet above ground. The first inspection was due January 1, 2025, and the next is due every 9 years. Since January 1, 2026, SB 410 puts the latest report in the resale disclosure package, so buyers and lenders see it earlier. A failed report, or an open city order under LA’s concrete or soft-story retrofit ordinances, can be treated as a critical repair.
What each loan path means at $800K and up
Conventional. Every rule above applies directly to buildings of 11 or more units. With 20% down, a loan at the $1,249,125 limit covers prices up to about $1.56M, so this is the band the 2026 changes reach first.
Jumbo. Jumbo loans aren’t sold to Fannie Mae or Freddie Mac, so their rules don’t apply by law. In practice, jumbo programs have generally required a full project review, and many follow Fannie-style standards. Whether a jumbo investor adopts the 15% line is its own choice, which is why this path always reads “Ask the lender.”
Non-QM and portfolio. Built for buildings and borrowers outside agency rules. Reported 2026 terms run 20% to 25% down in most cases (10% to 30% overall), with rates roughly 0.5 to 2 points above conforming. One program announced in September 2026 allows up to 25% of owners 60 or more days behind and commercial space up to 50%, and asks for a reserve study only below 3% reserves. Serious structural problems and litigation still limit most lenders. Terms change often.
Cash. No project review, but the same issues show up as dues increases, special assessments, and fewer financed buyers when you sell.
What the checker can’t do
- It can’t see the building’s documents. Your answers are only as good as what you know, so “Not sure” is the honest answer more often than not.
- It doesn’t check whether Fannie Mae has flagged the building Unavailable. That list isn’t public. HOA boards and managers can check it in Fannie’s Condo Status Finder.
- It doesn’t cover master insurance in detail, or non-incidental business income over 10% of the budget. A lender checks both.
- Lenders add their own rules. Two lenders can read the same building differently.
Every answer you mark “Yes” or “Not sure” has a document behind it. The list in your results is what to ask the HOA or the listing agent for, ideally before you write an offer and always before you remove your loan contingency.
Sources
- Fannie Mae Selling Guide B4-2.1-03, Ineligible Projects, dated August 5, 2026: selling-guide.fanniemae.com
- Fannie Mae Selling Guide B4-2.2-02, Full Review Process, dated August 5, 2026: selling-guide.fanniemae.com
- Fannie Mae Lender Letter LL-2026-03 and Freddie Mac Guide Bulletin 2026-C, March 18, 2026
- FHFA 2026 conforming loan limits (Los Angeles County, one unit: $1,249,125)
- California Civil Code 5551 (SB 326) and 4525 (as amended by SB 410)
- Non-QM example: UWM non-warrantable condo expansion, reported by HousingWire, September 2026
General information about condo lending rules as of October 27, 2026, not legal or lending advice. The checker doesn’t label any building, and it can’t tell you whether a lender will approve a loan. Lenders apply their own overlays, and only a lender’s review decides. Confirm with your lender.
Frequently asked questions
What does “lendability” mean for a condo?
It’s shorthand for whether lenders can make loans in a building. For a conventional loan, the lender reviews the HOA’s budget, reserves, repairs, litigation, delinquency, commercial space, ownership and insurance. Each lender decides for its own loans.
Does a flagged answer mean I can’t get a loan?
No. It means a lender may look harder at that issue. Jumbo, non-QM and portfolio lenders often accept buildings a conventional review won’t, usually with more down and a higher rate.
Which documents should I ask the HOA for?
Start with the current budget and reserve study, the master insurance declarations, the condo questionnaire your lender uses, 12 months of board minutes, and the latest SB 326 balcony inspection report. Your results add documents for each issue you marked.
Do the conventional rules apply to jumbo loans?
Not by law, because jumbo loans aren’t sold to Fannie Mae or Freddie Mac. Many jumbo programs follow similar project standards anyway. Ask the lender what theirs are.
Does the checker store my answers?
No. It runs in your browser. Your answers are sent only if you ask us to email you the results.
Get the building checked before you write an offer
Send us the building and your loan type. We’ll pull the unit count, review path, reserve line and SB 326 status, and list what to ask the HOA for. Or call (310) 881-8759.
Request a building check