Fannie Mae & Freddie Mac changed the rules on condo financing - Here's what Seattle buyers need to know.
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Fannie Mae & Freddie Mac changed the rules on condo financing - Here's what Seattle buyers need to know. If you're shopping for a condo in Seattle, Bellevue, Kirkland, Tacoma, or anywhere in King, Pierce, or Snohomish County, there's something you need to know: the rules just changed. On March 18, 2026, Fannie Mae and Freddie Mac issued Lender Letter LL-2026-03 and Guide Bulletin 2026-C - a coordinated update to how condominiums qualify for conventional financing. Some of the changes expand access to more buildings. Others will make it harder for some projects to qualify. And a few will affect what happens at closing. Here's a breakdown of what changed, what it means for buyers, and what questions to ask before you make an offer on a condo. These guideline changes also impact homeowners who are planning on refinancing their condo with a conventional mortgage. Why condo financing is different in the first place. When you buy a single-family home, the lender evaluates you and the property. When you buy a condo, the lender evaluates you, the unit, and the entire association - its finances, insurance, reserves, maintenance history, and ownership mix. Fannie Mae and Freddie Mac set the standards that most conventional lenders follow. If a condo project doesn't meet their guidelines, it can't be financed with a standard conventional loan. That affects buyers, sellers, and...
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