If you're buying or selling a condo along the Grand Strand, there is an important part of the transaction that can sometimes come as a surprise:

It isn't always enough for the buyer to qualify for the mortgage. The condominium project may need to qualify, too.

That's particularly relevant in a condo-heavy market like Myrtle Beach, Surfside Beach, Garden City Beach and Murrells Inlet, where association finances, insurance, reserves, assessments and the overall condition of a condominium project can become part of the financing equation.

Fannie Mae and Freddie Mac have recently changed several of their condominium lending requirements. Some changes could make financing easier for certain properties, while others may present new challenges for condominium associations, owners and prospective buyers.

What's Changing With Condo Financing?

According to the National Association of REALTORS®, Fannie Mae and Freddie Mac have eliminated the previous limited review option for condominium financing. In many cases, lenders will now have to complete a more comprehensive review of the condominium project.

There are also several significant changes that may help some projects:

  • Condominium projects with 10 or fewer units may qualify for a waiver from a full project review.

  • The previous requirement limiting investor ownership to no more than 50% of the units has been eliminated.

  • Fannie Mae's Condominium Project Manager can allow an already-approved project to be recognized by participating lenders without repeating the entire review process for each transaction.

At the same time, the standard HOA reserve requirement has increased from 10% to 15%. Associations may alternatively use a qualifying reserve study to establish the appropriate reserve amount under the applicable guidelines.

Why This Matters on the Grand Strand

Condominiums are a major part of our local real estate market, ranging from small low-rise communities to large oceanfront resorts and vacation-rental properties.

When financing one of those units, the lender may look beyond the buyer's credit, income, down payment and debt-to-income ratio.

Depending on the loan and condominium project, questions can also arise about things such as:

  • HOA budgets and reserves

  • Master insurance coverage

  • Special assessments

  • Deferred maintenance or significant repairs

  • Structural or engineering concerns

  • Pending litigation

  • Investor and rental concentration

  • Association documentation and project eligibility

That means a buyer can be financially well-qualified and still encounter a financing issue related to the condominium itself.

What Condo Buyers Should Do

When I'm helping a buyer evaluate a condo, I don't want the association questions saved for the end of the transaction.

The unit and the condominium association should be evaluated together.

Buyers should work with their lender early to determine what project-review requirements apply to their particular financing. It's also important to obtain and review available HOA information, including financial documents, insurance information, assessments and other relevant association disclosures.

The earlier a potential issue is identified, the more options everyone generally has to address it.

And remember: not every mortgage follows the same condominium guidelines. Fannie Mae and Freddie Mac requirements apply to loans sold to or backed through those programs; other conventional portfolio loans, FHA, VA and other financing options may have different requirements.

What Condo Sellers Should Know

These changes matter to sellers, too.

A property's marketability isn't determined only by its condition, location, view and asking price. The availability of financing can influence the pool of buyers who are realistically able to purchase it.

For a condo seller, knowing about potential association or project-financing issues before going under contract can be extremely valuable.

When preparing a condo for the market, I want to understand as much as reasonably possible about the association—including current dues, assessments, insurance, reserves, major projects and any known issues that could affect financing.

That doesn't mean every association issue prevents a sale. It means we are better positioned to market the property intelligently and avoid surprises later.

The Bigger Takeaway

Condominium financing continues to evolve, and these new Fannie Mae and Freddie Mac requirements are another reminder that buying a condo is different from buying a traditional single-family home.

Here on the Grand Strand, understanding the condominium project can be just as important as understanding the individual unit.

If you're thinking about buying or selling a condo in Myrtle Beach, Surfside Beach, Garden City Beach, Murrells Inlet or elsewhere along the Grand Strand, I'm happy to help you understand the questions worth asking and the information worth gathering before you get too far down the road.

For more detail on the changes, read the National Association of REALTORS®' August 18, 2026 article, “Why and How Condo Lending Rules Are Changing”:

https://www.nar.realtor/news/real-estate-news/why-and-how-condo-lending-rules-are-changing

Dan Sine, REALTOR®
Dunes Realty Sales
(843) 455-6319
www.DanSineRealtor.com

Real Estate Done Right

This information is provided for general informational purposes and is not lending, legal, insurance or HOA advice. Condominium eligibility and financing requirements can vary by property, association, lender and loan program. Buyers should confirm current requirements with their lender and other appropriate professionals.