Buying a Condo in Dallas: What Every DFW Buyer Must Know About the August 2026 Fannie Mae Rules

What do Dallas condo buyers need to know about the 2026 Fannie Mae rule changes?

On August 3, 2026, Fannie Mae eliminates its Limited Review process for condominiums, and Freddie Mac simultaneously removes its Streamlined Review pathway. Every condo buyer in Dallas — regardless of down payment size — will now face a Full Review of the HOA's financial health before their loan can close. Buildings with thin reserves, pending litigation, or outdated documentation risk losing conventional financing eligibility, leaving buyers to scramble for portfolio loans at higher rates and larger down payments. If you're shopping condos in Uptown, Victory Park, Downtown Dallas, Turtle Creek, or anywhere else in DFW, understanding what lenders will scrutinize after August 3 is the difference between a clean closing and a deal that falls apart at underwriting.

By Paul Blair | July 22, 2026

The Dallas condo market is softer than it's been in years. Inventory in Uptown is up, days on market in Victory Park have stretched past 100, and buyers have more negotiating power than they've had since before the pandemic. If you've been thinking about making a move into a condo — whether you're downsizing from a home in Plano, relocating from out of state, or searching for a lock-and-leave pied-à-terre near Knox-Henderson — this is one of the better entry windows in recent memory.

There's one thing you absolutely need to understand before you start shopping: in twelve days, the rules around condo financing change in a way that will affect nearly every buyer using a conventional loan in Dallas.

What Was Limited Review — and Why Its Elimination Matters

Under the old system, Fannie Mae offered lenders two pathways to approve a condo loan. Full Review required a thorough audit of the HOA's finances, reserves, litigation history, and insurance. Limited Review was a shorter path — if a buyer was putting down 10% or more on a primary residence, lenders could skip most of the HOA scrutiny and focus mostly on the individual unit.

Limited Review was widely used in DFW because it was faster and easier. It let buyers close on condos in buildings that might not have survived a full financial audit. And for many Uptown and Victory Park buildings where HOA reserves have drifted lower than they should be, it was the only pathway to conventional financing.

That pathway ends August 3, 2026.

After that date, every condo purchase — whether you're putting down 5% or 50% — requires a Full Review. There are no exceptions based on down payment size. The lender must collect and evaluate the HOA's reserve study, operating budget, meeting minutes, insurance policy, delinquency data, and any pending litigation before they can issue final approval.

Freddie Mac is making the same move simultaneously, eliminating its Streamlined Review pathway on the same date.

Warrantable vs. Non-Warrantable: The Financing Divide

The Full Review exists to determine whether a condo is "warrantable" — meaning it qualifies for conventional financing backed by Fannie Mae or Freddie Mac. If a building fails the review, it becomes "non-warrantable," and conventional loans are off the table for any unit in that building.

Here's what causes a Dallas condo to fail Full Review and tip into non-warrantable territory:

• Reserve fund below 10% of the HOA's annual budgeted income (rising to 15% effective January 4, 2027)
• Active litigation involving the HOA — including construction defect claims, which are common in newer buildings
• 15% or more of units 60+ days delinquent on HOA dues
• Single entity owns more than 20% of units in a project with 21 or more units
• Commercial space exceeds 35% of the building's total square footage
• Master insurance policy has a per-unit deductible above $50,000 (this cap became effective July 1, 2026, per updated Fannie Mae guidelines)

The practical reality: a number of DFW condo buildings — particularly some of the older mid-rise and boutique developments in Uptown and Downtown — have reserve funds that don't clear the 10% threshold. If that building hasn't corrected its reserve posture before August 3, buyers shopping there will suddenly find their conventional loan options gone.

Here's what the financing difference looks like:

The resale point matters as much as the financing point. If you buy in a non-warrantable building today, the buyer pool for your unit when you eventually sell is significantly smaller. That affects long-term value, not just your current transaction.

What the Full Review Actually Checks

After August 3, your lender will request a package of HOA documents to complete the Full Review. Here's what's in that package and what it reveals:

HOA questionnaire. The lender sends this directly to the condo association or its management company. It covers owner-occupancy ratios, pending litigation, budget summaries, reserve balance, insurance coverage, and single-entity ownership data. This is the starting document for every Full Review.

Reserve study. A reserve study is an independent assessment of the building's major systems, their expected lifespan, and what the HOA needs to set aside annually to cover future repairs. A healthy reserve should represent 25–40% of annual assessments. If the study hasn't been updated in the last 3–5 years, that's a red flag — lenders may require a new one, which delays your closing.

12 months of HOA financial statements. These show the actual cash position of the association — operating account, reserve account, income vs. expenses, and delinquency trends.

Two years of HOA meeting minutes. Meeting minutes often reveal what the financials alone don't: deferred maintenance discussions, special assessment planning, litigation disclosures, or major capital projects on the horizon.

Master insurance policy declarations. The policy must cover the building at replacement cost, and the per-unit deductible cannot exceed $50,000 as of July 1, 2026.

Lenders will also run an independent check for active litigation. A construction defect lawsuit — even one that's been dormant for years — can trigger non-warrantable status until the matter is resolved.

Bottom line: expect 2–4 additional weeks on your closing timeline for any condo purchase after August 3. The smart play is to request the HOA's resale certificate and questionnaire before you make an offer, so you know the building's status before your option period clock starts.

Under Texas Property Code Chapter 207, a condo or HOA is required to provide the resale certificate within 10 business days of your request. Use that window. If the reserve fund is at 8% and the building has a pending lawsuit, you want to know that before you spend $400 on an option fee and 10 days of due diligence.

If you're also weighing how condo HOA rules differ from a single-family subdivision HOA, the mechanics of the resale certificate and the TREC Addendum 36 process are covered in detail in our guide to HOA documents in Texas.

Considering a condo in Uptown or Victory Park before the August 3 rule change? The window to close under the old Limited Review process is narrow — and many buildings' HOA documentation won't survive a Full Review without advance preparation. Schedule a private consultation with a Dallas-based Grey Square agent, and we'll help you vet a building's warrantability before you make an offer. Reach us here.

What DFW Condo Buyers Should Do Right Now

Whether you're under contract already or still shopping, here's how to navigate the new landscape:

1. Ask about HOA health before you fall in love with a unit. Before you tour, ask your agent to find out the reserve fund percentage, whether there's any active litigation, and the current HOA delinquency rate. Your agent can contact the HOA directly or request the resale certificate on your behalf.

2. Run your lender's condo questionnaire early. Don't wait until you're under contract. Many experienced DFW lenders can informally flag whether a building is likely to pass Full Review based on publicly available information before you spend your option fee. If your lender isn't asking about the building proactively, find one who is.

3. Budget for the timeline. A 30-day condo closing is ambitious after August 3. Plan for 45–50 days if Full Review documentation isn't already assembled. If you're under a contract with a tight close date, talk to your agent about requesting an extension before you need one.

4. Know your non-warrantable options in DFW. If the building you want doesn't pass Full Review, several Dallas-area lenders specialize in portfolio and non-QM condo financing. The rate will be higher and the down payment requirement larger, but the loan is still available.

5. Consider the resale implications. If you're buying in a non-warrantable building, you're limiting your future buyer pool to cash buyers and portfolio loan holders. In a condo market that's already softening — Uptown inventory is up, Victory Park condos are sitting 100+ days on average — that's additional downside risk worth pricing into your offer.

If you're financing a luxury unit over the conforming loan limit ($806,500 in Dallas/Collin County for 2026), see our guide to jumbo loans in Dallas. The warrantability rules apply to jumbo condo loans too, and the documentation requirements are even more rigorous at high-rise price points in Victory Park and Turtle Creek.

On the closing cost side, condo buyers should expect to budget the same 2–5% of purchase price as single-family buyers in DFW, but HOA transfer fees and resale certificate costs (typically $200–$500 combined) are unique to condo transactions. The full breakdown lives in our Dallas buyer closing costs guide.

For buyers comparing loan programs, FHA loans are available for condos in FHA-approved projects — a separate approval list maintained by HUD. Not every building that passes Fannie Mae Full Review will be on the FHA-approved list, so confirm this separately if you're using FHA financing. The FHA vs. conventional decision for DFW buyers is covered in our guide to FHA vs. conventional loans in Texas.

Frequently Asked Questions

What is a warrantable condo in Texas?

A warrantable condo is one that meets Fannie Mae and Freddie Mac's project review standards, making it eligible for conventional financing. Requirements include adequate HOA reserves (currently 10%, rising to 15% of annual budget by January 2027), no active litigation involving the HOA, fewer than 15% of units 60+ days delinquent on dues, and no single entity owning more than 20% of units in a project with 21 or more units.

What changes for condo buyers after August 3, 2026?

On August 3, 2026, Fannie Mae eliminates its Limited Review process and Freddie Mac simultaneously eliminates Streamlined Review. Previously, buyers with 10% or more down on a primary residence could skip deep HOA scrutiny. After August 3, every condo purchase requires a Full Review of the HOA's financial health, reserve fund, litigation status, and master insurance policy.

What makes a Dallas condo non-warrantable?

A Dallas condo becomes non-warrantable if the HOA has active litigation, reserve funds below 10% of the annual budget, more than 15% of units 60+ days delinquent on dues, a single entity owning more than 20% of units in a 21+ unit project, commercial space exceeding 35% of the building, or a master insurance policy with a per-unit deductible above $50,000. The Texas Real Estate Commission (TREC) requires sellers to disclose HOA status, but warrantability is the lender's determination, not the seller's.

Can I still buy a non-warrantable condo in Dallas?

Yes, but your financing options change significantly. Non-warrantable condos in DFW require portfolio or non-QM loans from specialty lenders. These loans typically require 20–30% down and carry interest rates 0.5–2% higher than conventional loans. You'll also face a smaller pool of willing lenders, which can limit your flexibility if something changes during underwriting.

How long does condo Full Review add to a Dallas closing timeline?

Plan for 2–4 additional weeks compared to a standard single-family closing in DFW. The Full Review requires the lender to collect and process the HOA's reserve study, 12 months of financials, 2 years of meeting minutes, master insurance declarations, and litigation disclosures. Requesting the HOA questionnaire and resale certificate under Texas Property Code Chapter 207 before you make an offer can compress that timeline significantly.

Shopping for a condo in Uptown Dallas, Knox-Henderson, or Victory Park and want to know whether the buildings you're looking at will clear a Full Review? A Grey Square agent can run a preliminary HOA health check before you write an offer. Schedule a private consultation here.

The August 3 deadline is close, and it's going to catch buyers off guard in buildings where the HOA's financial posture isn't what it should be. The condo market in Dallas is giving buyers more negotiating power than they've had in years — but only in buildings where the fundamentals hold up under scrutiny. Knowing which buildings those are before you go under contract is the work that separates a clean deal from an expensive lesson.

If you want to explore what's available in the Uptown or Victory Park corridor, or you're weighing condos against single-family options in the same price range, the Grey Square Dallas listings search is a good starting point.

I've walked buyers through condo underwriting in Dallas's Uptown and Knox-Henderson markets where underfunded HOA reserves nearly derailed deals — it's the kind of thing you don't see coming if you're not asking the right questions before you go under contract.

About Paul Blair

Paul Blair is the founder and broker of Grey Square, a virtual real estate brokerage representing buyers and sellers across Dallas and Los Angeles. With 22 years in the business and more than $200 million in closed transactions, Paul works the full range of the market, from luxury homes in the Park Cities and Preston Hollow to estates in the Hollywood Hills and across the Westside. Connect with Paul and the Grey Square team at greysq.com. TX TREC #9011505 · CA DRE #01792671.