If a buyer is financing a condominium or a property in a homeowner’s association, we are required to determine if the association meets the standards of Fannie Mae or Freddie Mac.

The primary difference between the two types of ownership are that in a condominium, together the members of the association own the land collectively.  In a homeowner’s association (HOA), each homeowner owns the land for their property.

For both a condominium or HOA, the buyer is given an opportunity to review the condo or HOA docs and decide whether they are agreeable to the rules of the association.  Upon becoming a member of the association, they will have a right to participate, vote, and run for office to preside on the board.  It’s important to be an active member of your association so that you have a say in the decisions of your community.


In addition to the buyer having an opportunity to the HOA docs, we must perform our own due diligence as well.  We are most concerned with the financial well being on the association and confirming adequate insurance coverage.  We will be making sure the condominium meets the standards of Fannie Mae or Freddie Mac, which means the condo is warrantable.

If the condominium doesn’t meet these standards, there may be an opportunity to perform a limited review or finance a purchase using a non-warrantable loan program.

Interested in the primary criteria for evaluating a condominium?  Click here.

Interested in learning whether a condo is entitled to a limited review?

Questions? or 240 479 7658

Ready to pre-qualify?