The quick answer
Condo financing evaluates two things: the borrower and the condominium project. Income, assets, credit, and debts may support the borrower, while the project can still require review of insurance, budget, reserves, ownership, litigation, structural or safety conditions, commercial space, and other program criteria.
Why project review exists
A condo owner shares financial and physical risks with the association. Major repairs, inadequate insurance, unpaid assessments, or legal issues can affect unit value and marketability. Fannie Mae notes that lenders remain responsible for project eligibility and should not rely only on the appraisal because it does not address every project standard.
Documents that may matter
Depending on the program and review type, the lender may request a questionnaire, budget, financial statements, master insurance, declarations and bylaws, meeting minutes, special-assessment information, engineer or inspection reports, litigation details, and owner-occupancy or ownership data.
The list is scenario-specific. A project approved for one transaction or program is not automatically approved for every future loan.
Insurance, repairs, and assessments
Master-policy coverage and deductibles are central questions, especially in Florida. The buyer should also price an individual unit-owner policy and understand loss-assessment exposure with an insurance professional.
Ask about completed and planned structural work, reserve funding, special assessments, and how an assessment is paid. A seller paying an assessment does not by itself resolve every underlying project concern.
Questions before the contract
Ask whether the association responds promptly to lender questionnaires, whether major litigation or repairs exist, whether assessments are pending, and whether short-term rentals or other occupancy rules affect the intended use. Investors should not assume projected rental use is permitted by the association or financing.
Realtors can obtain available documents early, but the lender—not the agent or association—makes the applicable loan-program determination.
What to do if one program does not fit
A project concern can be temporary, document-related, or incompatible with a particular program. Another program or portfolio lender may analyze it differently, but alternatives can carry different cost, equity, reserve, and eligibility requirements. 'Non-warrantable' is not a universal approval category.
This article is general education. The current project documents, property, borrower, occupancy, and investor rules control the actual review.