01  Why These Two Changes Matter Most

Here's the shift underneath both of them: the building now has to qualify for the mortgage, not just the person signing for it. A buyer can have a spotless credit score, a strong income, and money in the bank — and still lose the loan because the condo association behind the unit doesn't measure up. That's the part that catches people off guard, and it's exactly why I dig into the community's finances early on every condo I show.

The two rules that carry the most weight are the end of the old "Limited Review" shortcut and the increase in required reserves. One changes how much scrutiny the building gets. The other changes how much money the building has to keep on hand. Together, they decide whether a condo stays what the industry calls warrantable — eligible for a normal conventional mortgage — or slips into non-warrantable territory, where financing gets much harder for everyone.

The building now has to qualify for the mortgage, not just the person signing for it. That's the whole shift in one sentence.

02  Change One: Limited Review Is Gone

For years, a large share of condo purchases moved through something called a Limited Review — a lighter process that asked the association for minimal paperwork and kept things moving quickly. As of loan applications dated on or after August 3, 2026, that shortcut is gone. Every condo purchase now requires a Full Review or a qualifying waiver.

In practice, that means your lender sends the homeowners association a detailed condo questionnaire — asking about its reserves, its insurance, how many owners are behind on dues, and whether the community is tangled up in any litigation. Issues that once slipped quietly through a Limited Review will now surface on every deal. And here's the catch I watch for: many management companies are slow to return that questionnaire, and a slow response is one of the most common reasons a condo closing stalls.

One important detail. The trigger is the date of your loan application , not your closing date. So the timing of when you formally apply matters, and it's a conversation I want my buyers having with their lender right at the start — not after they're already under contract.

The shortcut is gone. Every condo purchase now gets the full look — which means starting the paperwork early is no longer optional.

03  Change Two: Reserves Rise From 10% to 15%

The second change is about money in the bank. For loan applications dated on or after January 4, 2027, a condo association must budget at least 15% of its annual assessment income toward reserves — the fund it draws on for big-ticket repairs like roofs, roads, and building systems. The old minimum was 10%. That five-point jump sounds small, but for a lot of communities it's the difference between staying financeable and falling out of warrantable status.

Why does this matter to you as a buyer? Because if an association currently sits at 10%, its board has a decision to make before that date: raise dues, pass a special assessment, or risk becoming a place where buyers can't get a conventional loan. Here in Bucks County we have a lot of established communities — many built decades ago — that have long operated right at that old 10% floor. Some will adjust smoothly. Others will need to raise monthly dues to get there, and that's a cost worth factoring into your budget before you fall in love with a unit.

If a community can't or won't get to 15% and doesn't have a qualifying reserve study to lean on, it becomes non-warrantable. At that point, buyers can't use a conventional mortgage there — they're pushed toward a portfolio loan, which typically means a larger down payment and a higher interest rate. Fewer buyers can qualify, and that almost always puts pressure on resale values across the whole community.

04  What This Means If You're Buying

Don't let any of this scare you off a condo. They remain one of the smartest, lowest-maintenance ways into the Bucks County market, especially for first-time buyers. I just want you walking in with your eyes open. Before we write an offer, here's what I want answered: What percentage of the association's budget goes to reserves, and is there a plan to reach 15% before January 2027? How current is the reserve study? Are more than a handful of owners behind on their dues? And is there any pending special assessment or lawsuit?

These are a few questions and one conversation — but they're the difference between a smooth closing and a painful surprise. That's the homework I do quietly in the background so my clients never have to sweat it. One more thing worth knowing: these rules apply to condominiums. A true fee-simple townhome finances much more like a single-family home and skips this review entirely. Whether a home is legally a condo comes down to the recorded deed, not what it looks like — and I always confirm that early.

05  What This Means If You're Downsizing and Selling

So much of my work is helping families make this exact move — leaving the house where they raised their children for something simpler and closer to town. If that's you and you're selling a condo you've owned for years, these rules cut in a direction most sellers don't expect: the health of your association now directly affects who can buy from you.

If your building's reserves are thin or its numbers won't clear a Full Review, your pool of buyers narrows to cash and portfolio-loan buyers — and a smaller pool can mean a softer price. I'd much rather know that months ahead of listing so we can position your home correctly, or, in some cases, so you have time to nudge your board to shore up the reserve study before you go to market. When you sell a condo now, your neighbors' financial decisions quietly become part of your sale, and that's a conversation worth having before the sign goes in the yard.

When you sell a condo now, your neighbors' financial decisions become part of your sale — worth a conversation before you list.