Mortgage Navigator • Conventional • Condos

Condo special assessments

A special assessment does not automatically make a condo ineligible. The reason for the assessment is what matters.

What the lender reviews

For current or planned special assessments, Fannie requires the lender to understand the purpose, approval timing, original amount, remaining amount to collect and expected payoff date.

Critical-repair assessment

If an assessment is tied to a critical repair and the underlying issue remains unremediated, the project is ineligible until the repair requirements are satisfied.

Routine capital work is different

Normal preventative maintenance and ordinary capital replacement can be acceptable when handled within a sound budget or properly structured assessment.

Freddie: Freddie uses substantially similar critical-repair and special-assessment review concepts in Chapter 5701, but lenders should follow the selected agency's exact documentation requirements.

Official guide baseline

Fannie Mae Selling Guide · Freddie Mac Seller/Servicer Guide

Condo eligibility is both loan-level and project-level. A strong borrower does not cure an ineligible project.