What changed on August 3, 2026
Two things moved at once. The minimum HOA reserve allocation for conventional eligibility went from 10% to 15% of annual assessment income. And the streamlined Limited Review pathway — the short questionnaire lenders used for established buildings — was eliminated for buildings with more than 10 units, which pushes those purchases into Full Review.
Full Review means the lender collects the HOA's budget, financial statements, reserve study, delinquency report, board meeting minutes, and master insurance policy. Any one of those documents can surface a problem that stops the loan.
The reserve ratio is one line of division
Both numbers sit on the HOA's annual budget, which the listing agent can usually produce in a day. Running this before you write an offer costs nothing; discovering it in week three of escrow can cost you the deal and your inspection money.
The tests that aren't about reserves
Reserves get the headlines, but a building can be well-funded and still fail. Conventional guidance generally expects at least half the units to be owner-occupied as primary or second homes, and a delinquency rate above roughly 15% of owners is a common disqualifier. Pending litigation involving the structure or safety of the building is another.
Because reserve funding is a board decision, non-warrantable status isn't permanent — an HOA that votes to raise dues and lift reserve contributions can restore eligibility. That takes months, not weeks, so it matters more for a building you already own in than one you're bidding on.
Read the full guide: What the August 2026 condo mortgage rules mean for buyers →