What Do Ohio's New 2026 Condo Financing Rules Mean for Buyers Near Springboro?

Fannie Mae just rewrote the rules for condo loans. Here's what changes if you're buying a condo or townhome in Clear Creek Township, Springboro, or anywhere in Southwest Ohio.

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Published August 2026 · Updated August 2026 · By Douglas Haney & The Haney Group, Springfield, OH

Douglas Haney leads The Haney Group at Coldwell Banker Heritage, working alongside Lisa Ackerman, Brad Shuman, and Amanda Russell to help buyers and sellers navigate Springboro, Clear Creek Township, Springfield (our home base), and the surrounding Ohio market every day.

Quick Answer

Starting August 3, 2026, Fannie Mae retired the streamlined "Limited Review" process for condo loans, so most condo purchases near Springboro, Ohio and across Clark, Montgomery, Greene, and Warren counties now require a full financial review of the HOA before closing. A separate rule raises the minimum reserve fund requirement from 10% to 15% of the association's budget starting January 4, 2027. If you're shopping for a condo in Ohio right now, ask for the HOA's reserve study and budget before you write an offer — it can make or break your financing timeline.

If you're looking at a condo or townhome anywhere in Southwest Ohio right now, there's a new wrinkle in the financing process that didn't exist a year ago. On March 18, 2026, Fannie Mae issued Lender Letter LL-2026-03, and one of its biggest changes just took effect: the "Limited Review" shortcut that used to let a lot of condo buyers skip a deep dive into the HOA's finances is gone for any loan application dated August 3, 2026 or later.

That doesn't mean condo loans are impossible now. It means the process looks different, and buyers who understand it going in close faster than buyers who get surprised by it three weeks into their transaction. Here's what I tell every buyer who's looking at a condo in this market.

What Changed With Condo Financing in Ohio This Year?

Before August 2026, an established condo project could often qualify for a "Limited Review" — a shortcut that let a lender skip a deep financial audit of the HOA as long as the buyer had a strong loan-to-value ratio and planned to live in the unit. Fannie Mae has now retired that shortcut entirely. Every conventional condo loan in a project of more than ten units goes through a Full Review, which means the lender has to actually evaluate the association's operating budget, reserve funding history, master insurance policy, and any pending litigation before your loan can close.

A few other pieces of the same policy update matter just as much:

• The 50% investor-concentration cap on established condo projects is gone — a community with more non-owner-occupied units than before can still qualify for financing.
• Small condo projects (10 units or fewer) now qualify for an expanded review waiver, which can actually make financing easier in some of the smaller, boutique developments around our area.
• Starting January 4, 2027, the minimum reserve fund an HOA has to budget for capital repairs jumps from 10% to 15% of its annual assessment income — a 50% increase in the baseline funding bar.

If you're also budgeting for a mortgage right now, it helps to know where rates actually sit — our financing guide tracks that alongside loan program options for Ohio buyers. As of the most recent Freddie Mac Primary Mortgage Market Survey, the 30-year fixed rate averaged 6.67%.

Aug. 3, 2026 Limited Review officially retired for new loan applications

15% New minimum HOA reserve requirement, effective Jan. 4, 2027 (up from 10%)

6.67% Average 30-year fixed mortgage rate, week of Aug. 13, 2026

Sources: Fannie Mae Lender Letter LL-2026-03 · Freddie Mac PMMS

What Happens When You Make an Offer on a Condo Now?

The Full Review process adds real steps to your timeline, so it helps to know what's coming before you're in the middle of it.

From Accepted Offer to Clear-to-Close on a Condo

1	Your offer is accepted Your lender confirms whether the project has already been certified in Fannie Mae's Condo Project Manager system, or whether it needs a fresh review.
2	The lender requests HOA documents Budget, reserve study, master insurance certificate, litigation history, and delinquency rates — this is the paperwork that used to be skipped under Limited Review.
3	The underwriter reviews reserve funding If the HOA's budget falls short of the reserve threshold, the lender checks for a qualifying reserve study — and can no longer accept a "baseline" funding model that just avoids going negative.
4	Project status is confirmed and you're clear to close Once the project clears review, financing moves forward normally. A project flagged "Unavailable" in CPM freezes conventional financing there until the HOA fixes the underlying issue.

📘 Free Guide: Buying or Selling a Home in Southwest & Central Ohio

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💡 Haney Group Insight

Before you fall in love with a condo, ask your agent to pull the HOA's most recent reserve study and budget the same week you tour it — not after you're under contract. A project sitting on a thin reserve fund can add weeks to your closing, or in a worst case, get flagged "Unavailable" for conventional financing altogether.

Is a Condo Still a Good Move if You're Downsizing?

For a lot of the empty nesters I work with, a condo or townhome is exactly the right next step — less exterior maintenance, a lock-and-leave lifestyle, and often a smaller price tag than the four-bedroom house you're leaving behind. The 2026 financing changes don't take that off the table. They just mean it pays to shop smart.

✅ Condo Pros for Downsizers • Exterior maintenance and landscaping are typically handled by the association • Often a smaller monthly payment than an equivalent single-family home • Easier to lock up and travel without worrying about the property • Many buildings and communities offer single-level living

⚠️ Things to Weigh Carefully • Monthly HOA dues are a fixed cost on top of your mortgage payment • Financing now depends on the HOA's own financial health, not just yours • Special assessments are possible if reserves have been underfunded • Resale can move slower if the project isn't in good standing with lenders

If you're weighing a sale of your current house against a condo purchase, that's a conversation worth having early — a free home valuation gives you a real number to plan around before you start touring condos near Springboro or Clear Creek Township.

Questions to Ask the HOA Before You Write an Offer

✅	What percentage of the reserve fund is currently funded, and when was the last reserve study completed?
✅	Are there any special assessments passed or pending, and what were they for?
✅	Is the project currently listed as "Approved" or "Unavailable" in Fannie Mae's Condo Project Manager?
✅	What's the master insurance policy's per-unit deductible, and will you need your own HO-6 policy to cover the gap?
✅	Is there any active or pending litigation involving the association?

Condo ownership in Ohio is also governed by state law, not just your lender's rules. The Ohio Condominium Property Act (Ohio Revised Code Chapter 5311) spells out what the association has to keep in its books and what you're entitled to review, and sellers of Ohio condos generally still complete the same State of Ohio Residential Property Disclosure Form used for single-family sales. If you've already read up on what buyers and sellers really pay in closing costs across Ohio, the same categories apply to a condo purchase — the difference is the added HOA document review baked into your timeline.

"Before you fall in love with a condo, ask your agent to pull the HOA's most recent reserve study and budget the same week you tour it — not after you're under contract."

What Does This Mean for Buyers Near Springboro and Clear Creek Township?

Clear Creek Township and the Springboro area sit right in the middle of one of the fastest-growing corners of Warren County, with condo and townhome communities like Waterside at Settlers Walk offering the kind of low-maintenance living a lot of downsizers and busy professionals are looking for. If you're buying here, the Full Review process still applies to any established project with more than ten units, so the same questions above — reserve funding, special assessments, CPM status — matter just as much whether you're looking in Springboro, Miamisburg, Centerville, or back home in Springfield.

For buyers working with a VA loan or another government-backed program, it's worth knowing that FHA and VA maintain their own separate condo-project approval lists — a project can be approved for one program and not another, so it's worth confirming approval status for your specific loan type before you get too attached to a unit. And if you'd rather browse what's actually on the market right now, our home search portal lets you filter by community across Springboro, Clear Creek Township, and the rest of our Southwest Ohio service area, or start with our complete guide to buying a home in Ohio if you're still early in the process. You can also browse our full communities directory to compare condo-friendly areas across the region.

💡 Haney Group Insight

Every situation is different, and the only way to know for sure whether a specific condo project will finance smoothly is to run it past a lender who already knows how to read a reserve study — that's exactly the kind of legwork I walk my clients through before we ever write an offer.

DH

"I've had buyers walk away from a condo they loved because the HOA hadn't funded reserves in years — and I've had others close in three weeks because the association had its paperwork in perfect order. The financing rules didn't get harder so much as they got more honest about which projects are actually financially healthy. Do the homework up front and it won't slow you down at all." — Doug Haney

Frequently Asked Questions

Can I still get a loan on a condo in Ohio after August 3, 2026?

Yes. Condo financing is still available — the change means most established projects now go through a full financial review instead of the old streamlined shortcut, which can add time but doesn't stop financing for well-run associations.

What is a Fannie Mae "Full Review" for a condo project?

A Full Review is a comprehensive evaluation of the HOA's budget, reserve funding, master insurance policy, litigation history, and delinquency rates before a conventional loan can be approved. It replaces the streamlined Limited Review process for loan applications dated on or after August 3, 2026.

How much does an HOA need in reserves under the new rules?

Starting January 4, 2027, Fannie Mae requires condo associations to budget at least 15% of their annual assessment income toward replacement reserves, up from the previous 10% minimum, for loans reviewed under the Full Review process.

Is a condo a smart choice if I'm downsizing near Springboro or Clark County?

For many empty nesters, yes — lower exterior maintenance and often a smaller payment make condos appealing. Just weigh the HOA dues and confirm the project's reserve health before you commit, since that now directly affects how smoothly your loan closes.

Do FHA and VA condo approvals work the same way as Fannie Mae's?

No. FHA and VA each maintain their own separate condo-project approval lists that are distinct from Fannie Mae and Freddie Mac's conventional review process, so a project's approval status can differ depending on which loan program you're using.

The 2026 condo financing changes reward buyers who do their homework before they write an offer. Whether you're comparing a condo near Springboro to a single-family home in Springfield, or you're an empty nester ready to downsize, the fastest path to a smooth closing is knowing the HOA's financial health before you fall in love with the unit.

If you want the full picture before you make a move, grab our free Complete Guide to Buying or Selling a Home in Southwest and Central Ohio — it walks you through every step, condos included. And if you'd like to talk through a specific project you're considering, reach out anytime.

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The Haney Group at Coldwell Banker Heritage · (937) 821-8103 · thehaneygroup.com