40 Years

Community Association Institute

Indiana Chapter • 1986–2026

Community Associations Institute

New Condominium Lending Guidance Released

Fannie Mae / Freddie Mac Eligibility Status Guidance for Condominium Associations and Housing Cooperatives

CAI is proud to announce the release of Condominium Lending: Fannie Mae/Freddie Mac Your Condominium Association/Housing Coop Eligibility Status. This guidance document is designed to help community associations understand and address lending eligibility issues that may directly impact property values, mortgage accessibility, and home sales.

Since the tragic partial collapse of Champlain Towers South in Surfside, Florida, Fannie Mae and Freddie Mac underwriting requirements have created ongoing challenges for condominium associations and housing cooperatives. Communities flagged as “ineligible” for financing by these government-sponsored enterprises may struggle to secure mortgage loans, placing home sales, owner financing, and long-term community financial stability at significant risk.

Key National Survey Findings

To better understand the impact of these policies, the Foundation for Community Association Research conducted a snap survey of more than 700 board members, managers, and business partners nationwide.

42%

Are unsure whether their condominium or co-op is eligible for Fannie Mae or Freddie Mac financing.

37%

Took steps to determine eligibility status only after a denied mortgage loan in their community.

40%

Reported potential triggers for ineligibility such as deferred maintenance, low reserves, or pending litigation.

64%

Of ineligible communities reported direct negative impacts on home sales and property values.

“This data tells us that a significant portion of condominium and housing cooperative buildings in the U.S. may unknowingly be unable to secure mortgage financing for sales of units in their building.”

— Dawn Bauman, CAE

Executive Director, Foundation for Community Association Research
Chief Strategy Officer, CAI

What the New Guidance Covers

✅ Common reasons communities are deemed ineligible and how to proactively resolve them.

✅ Methods for boards and managers to determine condominium or housing cooperative eligibility status.

✅ Detailed steps to restore lending eligibility, including federal eligibility tools.

Download the Guidance Document Today

Ineligible status can often be reversed when boards and managers understand the triggers and implement the appropriate corrective actions. CAI strongly encourages association boards, managers, and management companies to download, review, and share this critical new resource.

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