Condo financing just changed, and if you're a real estate agent, this is something you need to understand. In this Tip from Tara, I'm breaking down the latest updates to condo project approvals and insurance requirements—and what they actually mean for your deals in the real world. Some changes make it easier to get condos approved and deals closed, but others will create new challenges that could delay—or even kill—a transaction if you don't catch them early.
Key takeaways
Condo eligibility is not just a borrower issue; the project and insurance details can determine whether the loan survives underwriting.
Agents can protect clients by checking condo project risks early instead of waiting until the file is deep into processing.
The right lender conversation before offer time can separate easy approvals from painful last-minute surprises.
Common questions
Why do condo loans get delayed?
Condo loans can be delayed when the project questionnaire, master insurance policy, budget, litigation, or investor concentration raises a guideline issue after the buyer is already under contract.
When should an agent ask about condo project approval?
Ask before the offer is written whenever possible, especially for smaller buildings, investor-heavy projects, litigation, or properties with unusual insurance coverage.
