Condominium Project Checklist for Realtors®
The following information is designed to assist Real Estate Agents in determining whether a
condominium project may be prone to disqualification for financing. This information is general
in its scope and for informational purposes only and is not intended to replace a lender’s HOA
certification.
How to use this information:
Use this checklist to uncover possible deficiencies in the HOA’s qualifying criteria. An HOA that
cannot meet certification guidelines may prevent a buyer from obtaining financing for that
property.
Project Approval
What to ask: is the project approved by the appropriate agency?
Who to ask: the agency’s condo lookup website.
• FHA: https://entp.hud.gov/idapp/html/condlook.cfm
• Fannie Mae: https://www.efanniemae.com/sf/refmaterials/approvedprojects/. The list of
approved projects is at the bottom of the webpage organized by state.
• Freddie Mac: follows Fannie Mae and HUD (reciprocal review).
• VA: http://condopudbuilder.vba.va.gov/2.2/frames.html
What to look for: project must be approved by the agency associated with the expected
financing (FHA, Fannie, Freddie, VA).
HOA Dues Delinquency
What to ask: how many units are late 30 days or more on HOA dues?
Who to ask: HOA / property management.
What to look for: no more than 15% of the units delinquent 30 days or more in HOA dues.
Non-Owner Occupancy Rate
What to ask: what is the ratio of non-owner occupied units to owner occupied?
Who to ask: HOA / property management.
What to look for: 51% or more of units must be owner occupied. Non-owner occupancy is
usually determined by identifying off site mailing addresses.
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Litigation
What to ask: is the HOA in litigation or is there pending litigation?
Who to ask: HOA / property management.
What to look for: no litigation in process or pending.
Adequate Reserves
What to ask: what is the total budget and how much is held in reserves (for unexpected
expense and insurance deductible).
Who to ask: HOA / property management.
What to look for: amount held in reserves must be 10% or more of total budget.
Percentage of Units Owned by a Single Entity
What to ask: how many units are owned by a single entity?
Who to ask: HOA / property management.
What to look for: no ownership by any single entity of more than 10% of the units.
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