A full condo review gives Chicago buyers a chance to uncover building problems before those problems become their financial responsibility. The process examines the association's finances, reserves, litigation, and structural concerns before the loan closes.
A building that does not pass review can create an obstacle for the deal. An experienced lender can help the borrower address those issues before they become a last-minute closing surprise.
Fannie Mae and Freddie Mac eliminated limited review, making full condo review mandatory on all conventional condo purchases. The process requires more documentation, but it protects buyers from hidden financial risks inside condo associations before closing. Choosing the right lender determines how smoothly that protection actually works.
For years, buyers putting 20% down on a condo could move through what the agencies called limited review. It was a one-page questionnaire that was fast and light on scrutiny. Fannie Mae and Freddie Mac then ended that path entirely.
Full condo review is now required on all purchases financed with conventional loans. The file now pulls in bylaws, budgets, reserve studies, pending litigation, structural concerns, and investor concentration ratios. Associations that rarely faced disclosure requirements now face comprehensive ones.
The agencies made these changes for understandable reasons. They saw what happens when buildings defer maintenance, delay special assessments, and operate with thin reserves. Chicago has not been immune, and local boards often vote against assessments because no one wants to raise monthly costs.
Over time, those buildings age and the deferred work quietly accumulates. Eventually the bill arrives as a special assessment that lands on every unit owner. That can include the buyer who closed two months earlier without knowing it was coming. Full condo review exists to surface that information before closing.
While some might view full condo review as an added hassle that could derail a deal, the process protects the buyer. The conditions it uncovers are the greater concern, and the review is simply the tool that makes them visible. It surfaces those conditions before they become the borrower's financial problem.
A buyer who closes on a condo without knowing about pending litigation, a structural flag, or a severely underfunded reserve is not protected. That buyer is exposed to whatever the building has not disclosed. A deal that closes fast while leaving those questions unanswered is a potential liability with a closing date attached.
A building that clears full review cleanly gives that clearance real weight. It tells the buyer they are not walking into hidden financial obligations waiting to become their own. That confidence is worth far more than a fast closing with open questions.
Dean Vlamis has watched this play out on both sides for years. He has seen how quickly a deal unravels when building issues surface late. He has also seen the damage that causes buyers, sellers, and real estate professionals caught in the middle.
"The condo review process actually protects the buyer. What's been happening in Chicago is buildings have been pushing off special assessments for quite a while. My verbiage now to clients is: I can get you approved in days, getting information from the association is what takes longer. But know that this protects you. If there is something down the road, your payment going up has nothing to do with the mortgage. That's a special assessment."
— Dean Vlamis, Chief Operations Officer, A and N Mortgage
Not every building passes full condo review cleanly on the first try. Some carry pending litigation, and some have structural concerns flagged during the process. Others show reserve balances that fall short of Fannie Mae's condo project eligibility thresholds. Buyers in that situation need to understand their options, and their lender needs to know how to find them.
Non-warrantable condo financing exists for situations where agency guidelines cannot be met. Mixed-use buildings, properties with certain investor concentration levels, and buildings with specific structural flags carry nuances that determine which paths remain open. Some files that look like dead ends are not, provided the lender has the relationships and the willingness to work through the details.
"We had a situation where the association was apprehensive about disclosing what was coming down the road. We worked with them. We said, 'This is how you want to present your budget; this is how you want to allocate some resources. We'll work with you to see if it can become warrantable.' When I used to work at big companies, they didn't have time to work a complex file. It was denied, or take it or leave it. We're able to actually walk and talk with the association and make it work."
— Dean Vlamis, Chief Operations Officer, A and N Mortgage
That kind of engagement is not common in the lending world. It requires a team with enough flexibility to work complex files. Most buyers never see that difference until their own file lands in the hard category.
Agents unsure whether a building will clear can connect with the team at A and N Mortgage early. Getting that read before a client is deep into the process leaves room to plan.
If you are currently under contract on a Chicago condo, do not wait for underwriting to surface building issues. A proactive lender can run a preliminary assessment on the building before you are weeks into the transaction. That leaves time to problem-solve, negotiate, or make a clear-eyed decision about whether to proceed.
Give your lender the address and ask for a preliminary look at the building. If something surfaces, you want to know now rather than a week before closing. If the building clears, you move forward with real confidence instead of crossed fingers.
Online lenders working from call centers in other markets do not carry the relationships these files require. They lack the Chicago condo department infrastructure and the association-level experience to navigate them. Realtors® with experience in this market already understand that, and buyers are learning it quickly.
The lender behind the review determines how well that protection actually works. Reviewing a building's HOA documents early is what prevents late-stage deal failures, and that upfront work is where an experienced condo team earns its keep. The CFPB's homebuyer resources also offer useful context for buyers navigating the documentation side of a condo purchase for the first time.
Limited review was a streamlined approval process available to buyers putting 20% or more down on a condo. Full review requires comprehensive documentation, including bylaws, budgets, reserve studies, litigation disclosures, and structural reports. Fannie Mae and Freddie Mac eliminated limited review, making full condo review mandatory on all conventional condo purchases.
The agencies identified patterns in which buildings deferred maintenance, delayed special assessments, and operated with insufficient reserves. That created financial risk that limited review was not capturing. Full review was designed to surface those risks before closing rather than leave buyers exposed to them after the fact. The policy change reflected what the agencies learned from buildings that deteriorated quietly for years before owners faced sudden, large assessments. I touched on these issues in a recent post about some of the risks associated with condo purchases.
Associations typically provide bylaws, the current budget, a reserve study, and recent meeting minutes. They also provide any pending or active litigation disclosures, plus information on investor concentration and deferred maintenance. The completeness and accuracy of these documents directly affect how quickly the review moves. Associations with organized, up-to-date records tend to clear faster than those still compiling outdated paperwork.
A non-warrantable condo does not meet Fannie Mae or Freddie Mac project eligibility guidelines. The cause is often pending litigation, high investor concentration, or reserve shortfalls. Non-warrantable financing options exist through portfolio lenders and other channels. The availability and terms depend on the specific reason for the designation and the lender's niche relationships. These files can still close when a lender knows how to structure them, even after other lenders have passed.
The lender and condo association working together can make a difference in some cases. A lender with condo department experience can review a budget with an association and identify how to present the financials in a compliant way. The same lender can walk the board through exactly what the agencies are looking for. This does not mean misrepresenting anything about the building. The lender is ensuring the documentation reflects the building's actual financial position in a format that meets review requirements. Not every lender has the capacity or willingness to do this work.
The buyer's own approval can often move in a matter of days. The longer variable is how quickly the condo association responds to documentation requests. Associations that are organized and have recent financials on hand tend to move faster. Buildings with outdated records, pending transitions, or reluctant boards can add significant time to the process.
Reserve fund balance relative to projected needs is one of the most important indicators. A building with low reserves and no clear replenishment plan is more likely to issue a special assessment soon. Pending litigation and deferred structural work are also significant flags to watch. These are obligations that will eventually require funding, and that funding comes from the unit owners. The Illinois Condominium Property Act outlines the disclosure requirements associations must meet, which gives buyers a baseline for what they can expect to see.
Wondering whether your client's Chicago condo will clear full review? Send me the building address, and A and N Mortgage can run an early read before you are deep into the transaction. Reach out now to line up calm clients and clear communication on your next condo deal.
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