Condo Financing Eligibility Assessment
Before a buyer can obtain a conventional mortgage on a condominium, the entire condo project — not just the individual unit — must meet specific eligibility standards set by Fannie Mae and Freddie Mac. A project that passes these standards is called warrantable; one that fails is non-warrantable, leaving buyers with fewer loan options, higher rates, and larger required down payments.
This free assessment tool walks through all 36 eligibility criteria — covering project structure, HOA finances, reserves, occupancy, litigation, insurance, physical condition, and documentation readiness — and delivers an instant pass, caution, or fail verdict with specific action steps for every issue found. Every question includes a tooltip citing exactly where to find the required information.
The tool reflects the major changes in Lender Letter LL-2026-03 (March 18, 2026), including the elimination of the limited review process effective August 3, 2026, the increase in minimum HOA reserve allocation from 10% to 15%, the retirement of the baseline reserve funding method, and the elimination of the 50% investor concentration cap.
Source: This tool reflects Fannie Mae Lender Letter LL-2026-03 (March 18, 2026), Freddie Mac's aligned bulletins, and Fannie Mae's Selling Guide (B4-2). It is provided for informational purposes and does not constitute legal or financial advice. Always confirm current requirements with a licensed mortgage professional. Questions? Contact E. Lee Smith at LoveYourRate.com — Austin's condo mortgage specialist.
Condo Financing Eligibility Assessment
Check your condo's readiness for conventional (Fannie Mae / Freddie Mac) financing. For realtors, condo owners, HOA boards, and property managers. Based on Lender Letter LL-2026-03 (March 18, 2026).
Start Here — Check Fannie Mae's Condo Status Finder
Before filling out this form, HOAs, management companies, and their advisors can check the free Condo Status Finder to see if Fannie Mae has already flagged the project. Requires free account registration. Note: "Not found" does not mean ineligible — the full CPM tool is lender-only and accessed during underwriting.
Open Condo Status Finder ↗Complete questionnaire to see findings
Answer the questions above to generate your warrantability assessment and action plan.
Other Helpful Calculators
Q. What is an MCC?
A. A Mortgage Credit Certificate, is a federal tax credit that reduces the amount of federal income tax paid by the homeowner. The tax credit is equal to 15% of the mortgage interest paid during the tax year. Homeowners are eligible for the tax credit every year, as long as they occupy the home as their primary residence.
Q. Is a home buyer required to stay in the home any number of years?
A. Home buyers who received an MCC, may be subject to Recapture Tax if they sell their home within 9 years of purchase, they make a profit on the sale, and their income has increased 5% over the county limit every year they lived in the home.
Q. Do I calculate household or qualifying income for MCC eligibility?
A. MCC's use the total income from the household (anyone who will be on the deed) to determine program eligibility. The income of cosigners, and children within the home does not need to be calculated.
Q. Can I refinance my MCC loan
A. Yes. The Mortgage Credit Certificate must be re-issued, provided that:
1. The reissued MCC is issued to the holder of an existing MCC with respect to the same property to which the existing MCC relates;
2. The reissued MCC entirely replaces the existing MCC (that is, the holder cannot retain the existing MCC with respect to any portion of the outstanding balance of the certified mortgage indebtedness specified on the existing MCC);
3. The certified mortgage indebtedness specified on the reissued MCC does not exceed the remaining outstanding balance of the certified mortgage indebtedness specified on the existing MCC; and
4. The reissued MCC does not result in an increase in the tax credit that would otherwise have been allowable to the holder under the existing MCC for any taxable year. The holder of a reissued MCC determines the amount of tax credit that would otherwise have been allowable by multiplying the interest that was scheduled to have been paid on the refinanced loan by the MCC rate of the existing MCC. In the case of a series of refinance transactions, the tax credit that would otherwise have been allowable is determined from the amount of interest that was scheduled to have been paid on the original loan and the MCC rate of the original MCC.
Interactive calculators are self-help tools. All examples are hypothetical and for illustrative purposes only.
E. Lee Smith
E. Lee Smith
Branch Manager
RMLO
NMLS: 436498
512-948-6550
Branch: Canopy Mortgage - TLC Group - 13809 Research Blvd, Ste 500, Austin, TX 78750 | Office #512-598-9093 | NMLSConsumerAccess.org #: 1359687 | Equal Housing Lender -All loans subject to credit and property approval.
Consumers wishing to file a complaint against a banker or a residential mortgage loan originator should complete and send a complaint form to the Texas department of savings and mortgage lending, 2601 North Lamar, suite 201, Austin, Texas 78705. Complaint forms and instructions may be obtained from the department’s website at www.sml.texas.gov. A toll-free consumer hotline is available at 1-877-276-5550. The department maintains a recovery fund to make payments of certain actual out of pocket damages sustained by borrowers caused by acts of licensed residential mortgage loan originators. A written application for reimbursement from the recovery fund must be filed with and investigated by the department prior to the payment of a claim. For more information about the recovery fund, please consult the department’s website at www.sml.texas.gov. State Licenses page, Privacy Policy, and Terms of Use