TLDR
A condo questionnaire is not an HOA document — it is a lender document that the HOA board or management company completes to help a buyer's lender assess whether the condo project meets financing eligibility standards. Inaccurate answers can disqualify a buyer's loan. Missing documentation delays closings. Boards that maintain current financial records and a questionnaire packet can respond accurately within days rather than weeks.
What Is a Condo Questionnaire?
A condo questionnaire is a lender document — not an HOA document. A buyer’s mortgage lender sends it to the homeowners association to gather project-level information needed to assess whether the condo project meets financing eligibility standards.
The board or management company fills it out. The buyer does not fill it out. The lender uses the answers to run a project eligibility analysis under Fannie Mae, Freddie Mac, FHA, or VA guidelines. If the project does not qualify, the buyer’s loan is denied — not because of the buyer’s creditworthiness, but because of the project’s financial condition.
This is worth understanding clearly: a buyer with a 780 credit score and 20% down payment can be denied a mortgage because of how your board manages the reserve fund.
What Lenders Are Actually Asking About
A condo questionnaire is a structured inquiry into the association’s financial health and operational risk. The core questions fall into five categories:
1. Reserve Funding
Lenders ask for the current reserve fund balance and the annual reserve contribution as a percentage of total assessment income. The Fannie Mae Full Review threshold is currently 10%, rising to 15% effective January 4, 2027.
If your association collects $250,000 per year in assessments and contributes $20,000 to reserves, your allocation is 8% — below both current and upcoming thresholds. A buyer using conventional Fannie Mae financing in your community cannot get their loan approved.
2. Litigation Status
Any pending litigation involving the association as a party must be disclosed. This includes developer disputes, construction defect claims, slip-and-fall liability suits, and disputes with individual owners. Lenders view active litigation as financial risk — a judgment against the association could deplete reserves or require a special assessment.
3. Delinquency Rate
Lenders ask what percentage of units are 60 or more days past due on assessments. Fannie Mae guidelines treat a delinquency rate above 15% as a risk factor. An association where many owners are not paying dues is an association that may not be able to maintain its common areas or fund reserves.
4. Occupancy Ratios
What percentage of units are owner-occupied versus investor-owned? Fannie Mae guidelines generally flag investor concentration above 35%. Boards should track this data actively, not guess.
5. Insurance Coverage
The association’s master insurance policy, directors and officers liability coverage, and fidelity bond coverage must be documented. Inadequate insurance coverage can disqualify a project.
The Fannie Mae Timeline: What Changed
August 3, 2026: Fannie Mae retired the Limited Review category for condo project eligibility under Lender Letter LL-2026-03. All condo projects now require Full Review, with its more comprehensive disclosure and financial requirements.
January 4, 2027: Full Review requires a minimum 15% reserve allocation. Boards operating at lower levels must increase reserve contributions in their next budget cycle to avoid non-warrantable classification.
Common Mistakes That Trigger Non-Warrantable Classification
Boards complete questionnaires infrequently and often underestimate the stakes. Common mistakes:
- Reporting the reserve balance without verifying it against the current bank statement. Year-old figures can be significantly off.
- Using budget allocation instead of actual contribution. If the budget calls for 10% but actual contributions were lower due to shortfalls, the budget figure is misleading.
- Not consulting counsel before answering litigation questions. Board members may not be aware of all pending or threatened claims.
- Guessing at occupancy ratios. If you don’t track this, say so — don’t estimate.
- Omitting deferred maintenance. If the board has discussed significant maintenance items, they may need to be disclosed.
This guide is informational, not legal advice. Consult your association’s attorney before completing litigation disclosures on lender questionnaires, and verify financial figures against current accounting records.
Like what you're reading?
Pick a plan to see pricing details and next steps. Start a 1-month free trial with a card, and we will email you 3 days before it ends.
See plans & pricing- Condo Questionnaire
- A lender-issued document completed by the HOA board or management company to provide project-level information for mortgage eligibility assessment. The questionnaire covers reserve funding, litigation, delinquencies, occupancy ratios, insurance, and financial health. Lenders use it to determine whether a project qualifies for conventional, FHA, or VA financing.
DEFINITION
- Full Review
- Fannie Mae's standard project eligibility review for condominium projects, requiring detailed financial and operational information including reserve allocation percentage, litigation disclosure, delinquency rate, and owner-occupancy ratios. As of August 3, 2026, all Fannie Mae-eligible condo projects require Full Review — Limited Review was retired.
DEFINITION
- Limited Review
- A simplified Fannie Mae project review process that was retired effective August 3, 2026 under Lender Letter LL-2026-03. Limited Review allowed lenders to approve certain low-risk condo loans with fewer project-level disclosures. All condo projects now require Full Review.
DEFINITION
- Warrantable Project
- A condominium project that meets all Fannie Mae or Freddie Mac eligibility criteria, including reserve funding thresholds, occupancy ratios, litigation disclosure, delinquency limits, and commercial space limits. Buyers in warrantable projects can obtain conventional mortgage financing. Buyers in non-warrantable projects are limited to portfolio loans with less favorable terms.
DEFINITION
Q&A
What information is required on a condo questionnaire?
A typical Fannie Mae condo questionnaire asks for: the project name and address, total number of units and phase completion status, percentage of units that are owner-occupied versus investor-owned, current dues delinquency rate (percentage of units 60+ days past due), pending litigation involving the association, current reserve fund balance and annual reserve contribution as a percentage of total assessments, whether a reserve study has been completed, current insurance coverage details including master policy limits and fidelity bond coverage, and any known structural issues or deferred maintenance.
Q&A
How does the January 4, 2027 Fannie Mae reserve requirement affect condo questionnaire answers?
After January 4, 2027, a condo questionnaire completed for Full Review must show that the association allocates at least 15% of total annual assessment revenue to reserves. If the association's reserve allocation is below 15%, the project will not qualify for conventional Fannie Mae-backed financing, and the lender will deny the loan regardless of the buyer's qualifications. Boards should verify their reserve allocation percentage before any unit sale closes so they are not surprised when the questionnaire triggers a denial.
Q&A
Can a board refuse to complete a condo questionnaire?
Technically, the board is not legally compelled to complete a lender's questionnaire. However, refusing to cooperate will effectively make the community's units unfinanceable with conventional loans — a result that harms every owner's property value. Most boards complete questionnaires as a matter of course. Some charge an administrative fee to cover staff time. If the board lacks the records to complete the questionnaire accurately, the better response is to say so and provide what records are available, rather than providing inaccurate information.
Q&A
What is the difference between a full and limited review condo questionnaire?
Limited Review required fewer project disclosures and was used for lower-risk transactions. Fannie Mae retired Limited Review effective August 3, 2026 — all projects now require Full Review. Full Review questionnaires ask for complete reserve funding data, detailed occupancy ratios, litigation disclosures, delinquency rates, and insurance documentation. Boards that previously only completed simplified questionnaires should prepare for the more comprehensive Full Review requirements.
Frequently asked