Check who runs the building and which loan programs it qualifies for, and do it before you write an offer or set a list price. In Dallas-Fort Worth, a condo can be perfectly financeable under one loan program and impossible under another, and the association controls documents your lender will demand. Since August 3, 2026, more buildings face a full financial review, which makes those two answers the difference between a 30 day close and a 90 day one.
Source: Fannie Mae Lender Letter LL-2026-03, accessed August 2026.
I'm Joni Freeman, PharmD, Principal Broker of JL Marsaw & Co Realtors. This is the practical companion to my breakdown of the condo rule change that took effect August 3. That post explains what changed. This one is what to actually do about it.
What should you do before you list a condo?
Find out how your building finances before you list your unit for sale.
Conventional loans, FHA loans, and VA loans each have their own condo rules, and a building can be perfectly fine under one and a dead end under another. Conventional financing is what the Fannie Mae rules govern. FHA keeps its own approved list. VA keeps a separate one. A building can sit on one list and be missing from the others.
That matters because it tells you who can actually buy your unit. If your building only works for one kind of financing, you just narrowed your buyer pool, and you want to know that before you set a price, not after thirty days of showings.
So ask your association three questions. What documents do we already have ready for a lender? When were our financials last put together? Has anyone financed a sale here in the past year, and what kind of loan was it?
If those answers come back thin, start gathering now. It is far easier to build a document package on your own schedule than under a contract deadline with somebody's lender waiting on you.
What should you ask before you make an offer on a condo?
Start with one question. Who runs this building?
If a professional management company runs it, the documents your lender needs already exist and somebody is paid to send them. If the owners run it themselves, those documents may have to be created from scratch, by volunteers, on their own time. That one answer tells you more about your timeline than anything else you will learn.
Then ask these:
- Has anyone financed a purchase here recently, and what kind of loan was it?
- Is the association involved in any litigation?
- Are there major repairs coming, and is there money set aside for them?
- How many owners are behind on dues?
- How many units are rented out rather than lived in by the owner?
- Is a special assessment being discussed?
You are not being difficult by asking. You are finding out whether the building can pass a test you have no control over.
And if you love a unit in a building that sounds shaky, do not walk away on reputation alone. Have your agent find out where the building actually stands. Sometimes the real answer is better than the rumor.
What documents will the lender actually want?
These are the ones that come up over and over. If you're selling, this is your gathering list. If you're buying, this is what your closing timeline is waiting on.
Reflects the items covered by Fannie Mae's project review requirements as of August 2026. FHA and VA request their own document sets.
Why do condo closings take longer?
Because a third party who isn't in your transaction controls the schedule.
The association has to produce documents on its own time, and nobody in your deal can make that happen faster. Buyers get anxious and assume something is wrong. Sellers assume the buyer is stalling. Usually neither is true.
Build the extra time into the contract on the front end. Ask for the timeline before you sign, not after you're behind it. A deal that everyone expected to take longer feels completely different from a deal that's running late.
Frequently Asked Questions
Do these rules apply to townhomes too? It depends on how the property was legally created, not what it looks like from the street. Some townhomes are legally condominiums and some are not. The answer lives in the recorded declaration that created the community, and the legal description on the deed usually gives it away too. Your agent can pull both.
Who pays for the association's paperwork? It varies and it's negotiable. Many associations charge a fee for the questionnaire and document package. Get that answer early, because in a self-managed building there may be no process for producing it at all, let alone a price.
What is a special assessment and why should a buyer care? It's a one-time charge the association levies on owners when there isn't enough saved for a repair. If one is being discussed before you close, you may inherit it. Ask directly whether any assessment is under consideration, not just whether one has been approved.
Can a seller do anything if the association won't cooperate? Sometimes. Escalating to the board, offering to cover the document fee, or having your agent make the request in writing can all move it. What doesn't work is waiting and hoping, which is why this belongs on the pre-listing list rather than the under-contract list.
How far in advance should a condo seller start preparing? Start when you start thinking about selling, not when you're ready to list. Gathering documents from a self-managed association can take weeks, and it costs you nothing to have them ready early.
Working on a condo in DFW?
Whether you're buying or selling, the building matters as much as the unit. I'm happy to tell you where a specific building stands before you commit to anything.
214-770-7762 | [email protected] | www.jlmarsaw.com
Who should I talk to about buying or selling a condo in Dallas-Fort Worth?
Joni Freeman, PharmD, is Principal Broker and Founder of JL Marsaw & Co, serving Frisco, Celina, Prosper, McKinney, and Dallas-Fort Worth since 2015. Licensed broker in Texas (TREC #0592325) and Georgia (#414657). Director, Texas REALTORS® Board of Directors. Chair, MetroTex Young Professionals Network. ABR, SRS, Pricing Strategy Advisor, New Home Co-Broker. 214-770-7762 | [email protected]
