A buyer can have solid income, strong credit and a preapproval letter, then discover that the condominium itself creates a financing problem. For an Eastside condo purchase, send the building’s name and address to the lender early. The lender needs to evaluate the project as well as the borrower.
That matters when comparing a Bellevue condominium with one in Issaquah or another Eastside community. Two units at similar prices can present different financing questions because their associations, physical condition and insurance differ. The kitchen tells you very little about that part of the purchase.
A 2026 change is already in effect
Fannie Mae’s March 18, 2026 lender letter retired its Limited Review process for loan applications dated August 3, 2026, or later. Projects previously eligible for that process now require Full Review or, where applicable, a Waiver of Project Review. An assurance that a building qualified for a particular loan several years ago does not answer today’s question.
The same letter sets a separate January 4, 2027 application-date requirement for a higher replacement-reserve allocation under Full Review, increasing the minimum from 10% to 15% of annual budgeted income assessment. Reserve-study provisions also matter. These are mortgage eligibility standards, not a new Washington law requiring every association to change its dues by the same amount. Ask the lender which current requirements and permitted review options apply to your loan.
For a purchase that may extend into next year, discuss the timing now. Do not assume that a later closing date alone determines which rule applies when the published trigger is the loan application date.
Get the project questions into the contract timetable
Fannie Mae’s consumer guidance identifies financial stability, building condition, major litigation and unresolved inspection issues among the matters that can affect financing. Its project eligibility resources also distinguish review types and insurance requirements. Your lender should translate those standards into a specific request for the association’s records.
Ask who will order the project questionnaire, who will answer follow-up questions and when the lender expects a decision. A stack of documents arriving shortly before closing leaves little room to resolve a missing insurance detail or unclear repair plan. Coordinate that work with your contractual financing and document-review deadlines. Do not assume a pending lender review automatically extends either one.
For sellers, assemble the current management contact and readily available association records before listing. If an earlier transaction encountered a financing issue, establish what it was and whether it has actually been resolved. “The last buyer had trouble” is too vague to help the next buyer or their lender.
Our King County condo market update considers pricing and competition. Project financing adds another property-specific layer. Before committing to a unit, get a clear answer about the proposed loan, the building review and the outstanding conditions. A preapproval letter is a good starting point; a workable path through this particular building’s review is what helps the purchase reach closing.
AI-generated editorial illustration of a condominium building; not an actual Eastside property or approved loan project.
Sources checked October 20, 2026.
