Friday, August 7, 2026 / by Ryan Huemmer
New Fannie Mae and Freddie Mac Condo Rules: What Dane County Condo Buyers and Sellers Need to Know
If you're buying, selling, or already own a condo in the Madison area, new lending rules that took effect August 3, 2026 are about to change how that mortgage gets approved. Fannie Mae and Freddie Mac, which guarantee roughly 70% of the mortgages originated in the U.S., have eliminated the "shortcut" review process that many condo buildings used to qualify for financing. Here's what changed, why, and what it means for you.
What Changed on August 3
For years, condo projects that looked low-risk could qualify for a "Limited Review" (Fannie Mae) or "Streamlined Review" (Freddie Mac) a faster, lighter-documentation path to loan approval. Roughly 40% of condo mortgage purchases relied on this streamlined pathway.
That option is now gone for most buildings. Unless a project qualifies for a waiver, every condo mortgage now has to go through a "Full Review," which means lenders must dig into:
The condo association's finances
Reserve fund balances
Insurance coverage
The physica ...
What Changed on August 3
For years, condo projects that looked low-risk could qualify for a "Limited Review" (Fannie Mae) or "Streamlined Review" (Freddie Mac) a faster, lighter-documentation path to loan approval. Roughly 40% of condo mortgage purchases relied on this streamlined pathway.
That option is now gone for most buildings. Unless a project qualifies for a waiver, every condo mortgage now has to go through a "Full Review," which means lenders must dig into:
The condo association's finances
Reserve fund balances
Insurance coverage
The physica ...
