Why purchasing a condominium has become more challenging

This video explains why purchasing a condominium has become more challenging as of August 3, 2026. 

Key takeaways:

New Lending Standards: Fannie Mae and Freddie Mac have retired the "streamlined" review process for condo mortgages (1:40-1:48). 

Comprehensive Reviews: Lenders must now conduct detailed inspections of a building's finances, reserve funds, insurance coverage, and overall structural health before approving a mortgage (1:51-2:05).

Market Impact: These stricter guidelines could lead to longer approval processes, higher down payments, or mortgage denials for buyers, even those with excellent credit, if the building itself does not meet the new criteria (2:19-2:51).

Historical Context: These reforms were largely prompted by the 2021 Surfside condominium collapse, which highlighted the dangers of structural neglect and prompted lawmakers to enact stricter building safety measures (3:36-4:10).

Essentially, the mortgage process is shifting so that lenders assess not just the buyer's ability to pay, but also the long-term viability of the building itself (4:14-4:34).