A Guide to Refinancing a Condo

Written by Samantha SheltonNMLS 1647301Updated October 2026

Refinancing a condo runs through the same steps as any mortgage refinance, with one addition that decides the whole file: the lender has to approve the condo project, not just you. Both Fannie Mae and Freddie Mac treat a project as ineligible when more than 15% of its units are 60 or more days past due on HOA assessments, and Fannie Mae separately caps non-residential or commercial space at 35% of the project.

Condo owner on her balcony considering refinancing a condo in a Michigan mid-rise building

That second underwrite runs on paperwork you don’t control: a condominium project questionnaire, the current budget and reserve figures, the master insurance certificate, and any litigation disclosure, all produced by your association. Projects that clear the agency tests are warrantable. Projects that don’t are non-warrantable, which doesn’t mean unfinanceable, it means the loan moves to a portfolio lender with different guidelines and pricing.

Learn how condo project review works, which documents your HOA has to produce, how condo appraisals and condo pricing differ from a single-family refinance, and which refinances skip project review entirely. For the wider picture, start with our Refinancing & Home Equity guide.

Key takeaways:

Two approvals, not one: The project is underwritten alongside you, against hard thresholds: no more than 15% of units 60 or more days delinquent on assessments, no more than 35% commercial space, and replacement reserves funded at 10% or more of the budget.
Condos carry their own price adjustment: Freddie Mac’s Condominium Unit credit fee is 0.750% of the loan amount above 75% LTV, 0.125% from 60% to 75%, and nothing at or below 60%. Detached units are exempt.
Budget 3% to 6% of your loan principal: Freddie Mac’s range for refinance costs, plus two items a house file doesn’t carry: an association questionnaire fee, and often a week or more waiting on HOA documents.

What makes refinancing a condo different?

One extra approval, and it belongs to somebody else. A condo lender underwrites you, the unit, and the association that controls the building, because your unit’s value depends on how well that association is funded, insured and maintained. An association with 15% or fewer delinquent units and funded reserves makes your unit ordinary collateral; one in structural litigation makes every unit inside it harder to sell. Our overview of condominium financing covers how the same standards apply on a purchase.

Two terms do the work. Warrantable means the project meets Fannie Mae or Freddie Mac standards, so the loan can be sold to the agencies and priced at conventional rates. Non-warrantable means it can’t, so the loan stays on a lender’s books. If you’re unsure which structure you own, condo vs. co-op explains why the rules diverge: co-ops are reviewed under separate agency sections and excluded from several condo shortcuts.

What makes a condo warrantable?

Six tests decide it, and every one carries a published number. Fannie Mae’s Full Review and ineligible-project rules set the thresholds below; Freddie Mac’s established-project rules track the same 15% delinquency limits.

Test	Warrantable	Trips non-warrantable	Financing consequence
HOA assessment delinquency	15% or fewer units 60+ days past due	More than 15% past due	Ineligible for agency financing
Special assessment delinquency	15% or fewer units 60+ days past due on each	More than 15% past due	Full Review fails
Single-entity ownership	2 units max in projects of 5 to 20; 20% max in projects of 21+	One owner above those counts	Ineligible under Fannie Mae rules
Commercial space	35% or less non-residential	More than 35% commercial	Portfolio financing only
Litigation	Minor matters; damages within 10% of funded reserves	HOA sued over safety, structural soundness, habitability or functional use	Ineligible until resolved
Reserves and repairs	Replacement reserves funded at 10%+; no critical repairs outstanding	Unfunded repairs above $10,000 per unit due within 12 months	Ineligible until remediated

Read that as a diagnosis, not a verdict. A project failing one test is still financeable through a portfolio lender, usually at a higher rate and with more equity.

Which condo refinances skip project review entirely?

More than most owners expect. Both agencies waive project review outright in several common situations, and if yours is one of them, the HOA paperwork never gets ordered.

Detached condo units: Fannie Mae waives review for any unit completely detached from other units in the project. Freddie Mac exempts detached units from review and from the condominium credit fee.
Projects with 2 to 4 units: Review is waived for new and established projects that small, under both agencies.
Projects with 5 to 10 units: Waived when the project isn’t part of a larger development or master association.
A Fannie Mae-owned loan refinanced as a limited cash-out: Review is waived at a maximum 80% LTV. Co-op projects are excluded.
A Freddie Mac-owned no cash-out refinance: Exempt from review, with one carve-out: attached units in projects of 11 or more units still can’t have unaddressed critical repairs or an evacuation order.
An FHA-to-FHA streamline refinance: HUD Handbook 4000.1 states that Streamline Refinances do not require Condominium Project Approval or Single-Unit Approval at all, so the questionnaire never gets ordered.

A few screens still apply: the project can’t be a condo hotel, houseboat, timeshare or segmented-ownership project, can’t be terminating or insolvent, and can’t be flagged unavailable in Fannie Mae’s Condo Project Manager. Ask which review path your file lands on before you call your association, it’s the question that most changes your timeline. Other cases are covered across our refinance situations library.

What documents do you and your HOA need to provide?

Two stacks, and only one is yours. Your side is standard documentation you can pull in an afternoon; the association’s side sets the calendar.

Document	Who produces it	Typical turnaround
Pay stubs, W-2s, tax returns, bank statements, mortgage statement, homeowners policy	You	Same day to 2 days
Condominium Project Questionnaire (Fannie Mae Form 1076 / Freddie Mac Form 476)	HOA or management company	Often 1 to 3 weeks
Current budget, reserve balance or reserve study, litigation disclosure, meeting minutes	HOA	Days to 1 week
Master hazard and liability insurance certificate	HOA’s insurance agent	Days

The questionnaire is the bottleneck. The agencies standardized it as Form 1076 / Form 476 so associations stop getting a different form from every lender, and Fannie Mae retired the old short form, Form 1077, because it no longer established eligibility. Across Align files it’s the item most likely to add a week or more, and many management companies charge a fee to complete it.

None of that changes what you qualify on personally, credit, income, debt-to-income ratio and equity still drive the decision. Our guide to refinancing eligibility covers those borrower-side thresholds.

How does condo review differ by loan type?

Every program reviews the project, but each uses a different list and clock.

Conventional

Fannie Mae and Freddie Mac standards apply, and the seasoning rules are the tightest published numbers in the file. On a cash-out refinance, at least one borrower must have been on title six months before the new loan disburses, and an existing first mortgage being paid off must be at least 12 months old, note date to note date. Conventional cash-out generally stops at 80% LTV. Rate-and-term refinances carry no six-month ownership requirement.

FHA

The project must be FHA-approved, or your unit has to earn Single-Unit Approval, which HUD caps at 10% of the total units in a project; in projects with fewer than 10 units, no more than two units total can carry FHA-insured mortgages.¹ Single-Unit Approval also requires a project with at least five units, a certificate of occupancy issued at least a year ago or prior occupancy, and an owner-occupancy percentage of at least 50%. FHA cash-out tops out at 80% LTV and requires 12 months of ownership and occupancy as your principal residence. Streamlines skip the questionnaire entirely.

VA

The project has to be VA-approved before any unit inside it is eligible for a VA-guaranteed loan, and VA has not accepted HUD or FHA condominium approvals in place of its own review since December 7, 2009.² On an Interest Rate Reduction Refinance Loan, federal law sets the seasoning: at least 210 days after the due date of the first monthly payment on the loan being refinanced, and at least six consecutive monthly payments made. VA sets no loan-to-value cap on a cash-out refinance; the 90% ceiling you’ll see quoted is an overlay applied by lenders in our network, not a VA program limit.

Investment condos follow the conventional project rules plus investment-property pricing, which runs materially higher at every LTV band. See how to refinance an investment property for that math.

What happens during a condo appraisal?

A different form, and a narrower set of comps. Condo units are appraised on Fannie Mae Form 1073, the Individual Condominium Unit Appraisal Report, which asks the appraiser to describe the project’s common elements, note any ground rent, judge whether parking is adequate, and analyze the association’s budget for the adequacy of fees and reserves. A house appraisal asks none of that. Comps come from inside your project first, which is why one distressed sale in your building moves your number more than a strong month countywide. Our guide to refinance appraisal requirements covers what the appraiser needs.

You may not need an appraisal at all. Fannie Mae’s Desktop Underwriter can return value acceptance, the Selling Guide’s current term for an appraisal waiver, by scoring a prior appraisal on your property that already sits in Fannie Mae’s Collateral Underwriter data. Two limits are worth knowing: DU will not offer value acceptance when that prior appraisal drew a Collateral Underwriter overvaluation flag or could not be scored, and a lender may not exercise an offer once an appraisal is ordered for the transaction, or when the offer is more than four months old on the note date.

If the number lands under what you expected, you still have moves, from a reconsideration of value with better comps to a smaller loan amount. Start with how to refinance with a low appraisal before you treat the file as dead.

What does refinancing a condo cost?

Freddie Mac tells refinancing homeowners to expect 3% to 6% of their loan principal, covering the appraisal, credit report, origination, title, recording, tax service, survey, attorney and underwriting fees. A condo file adds two items: the association’s questionnaire fee and the condominium credit fee.

The credit fee is worth planning around. Freddie Mac’s Exhibit 19 charges 0.750% of the loan amount on a condominium unit above 75% LTV, 0.125% between 60% and 75%, and nothing at or below 60%, on both cash-out and no cash-out refinances. On a $250,000 refinance that top band is $1,875, usually delivered as a slightly higher rate rather than a line on your statement.³ Paying principal down from 76% LTV to 75% at closing can be worth far more than the payment it removes. Detached units aren’t charged at all.

Two federal documents let you police the rest. Your lender must deliver a Loan Estimate within three business days of application, and the CFPB’s walkthrough of comparing refinance costs on the Loan Estimate shows how to line two up. Final figures arrive on the Closing Disclosure at least three business days before you sign; check them using the CFPB’s guide to reviewing your Closing Disclosure before signing. Refinancing your principal residence also carries a right of rescission: you can cancel until midnight of the third business day after closing.

Loan size matters too. The 2026 baseline conforming loan limit for a one-unit property is $832,750, with a $1,249,125 ceiling in high-cost areas; confirm the current conforming loan limits for your county before assuming agency rules apply. Above them, project review is whatever the portfolio lender says it is. See refinancing closing costs for the full fee list.

How do you keep a condo refinance on schedule?

Order the HOA documents first. Everything else moves faster than an association can produce a questionnaire.

Email your association manager the week you apply: Ask for Form 1076 or 476, the current budget, the reserve balance, the master insurance certificate, any litigation disclosure, and the questionnaire fee.
Check whether your project is already approved: Fannie Mae’s Condo Project Manager and the FHA and VA approved-condo lists are checkable before you spend a dollar, and an existing status cuts days off the review.
Find out if you qualify for a waiver: A detached unit, a project of 10 units or fewer outside a master association, or an agency-owned loan refinanced without cash out can bypass the questionnaire completely.
Don’t change your financial picture mid-file: New debt or a large unexplained deposit restarts underwriting on your side, and cash-out seasoning clocks don’t pause for it.

Holding off is a reasonable answer. If your project is months from finishing a reserve study or settling a lawsuit, waiting can move you from portfolio pricing back to agency pricing, usually worth more than any rate you’d catch today. Our refinancing guide covers timing.

How Align handles a hard refinance

Low equity, a credit setback or an unusual property can make a refinance look impossible at one lender and workable at another. Lenders add their own rules on top of the program's.

Samantha takes your file to the wholesale lender whose rules fit it, and if waiting is the better move, she tells you that instead.

Already have an offer from your current servicer or one of the big national lenders you see advertised? Bring us the Loan Estimate. We will compare it line by line and show you where we can do better.

Run a refinance break-even review

FAQ: Refinancing a condo

Here are answers to common questions about refinancing a condo.

What condo documents do lenders require to refinance?

Expect a completed Condominium Project Questionnaire, Fannie Mae Form 1076 or Freddie Mac Form 476, plus the current budget, a reserve balance or reserve study, the master insurance certificate, and disclosure of any pending litigation. Request it all the week you apply, since turnaround is often one to three weeks. Our guide to condominium financing lists the same documents on the purchase side.

What makes a condo non-warrantable?

Six triggers, most of them numeric: more than 15% of units 60 or more days delinquent on assessments, one entity owning more than 2 units in a small project or more than 20% of a project with 21 or more units, more than 35% commercial space, litigation over safety or structural soundness, reserves funded below 10% of the budget, or unfunded critical repairs above $10,000 per unit. Non-warrantable condos still refinance through portfolio lenders, at higher rates and with more equity.

Is a condo appraisal different from a house appraisal?

Yes. Condos are appraised on Fannie Mae Form 1073, which adds an analysis of the project’s common elements, parking, ground rent and the adequacy of the association’s fees and reserves. Comps come from inside your project or directly competing projects, so recent sales in your building matter far more than county-wide trends. See refinance appraisal requirements for how to prepare.

Does refinancing a condo cost more than refinancing a house?

Usually a little, in two places. Freddie Mac’s condominium credit fee is 0.750% of the loan amount above 75% LTV and 0.125% from 60% to 75%, generally passed through as a marginally higher rate, and many associations charge a fee to complete the questionnaire. Everything else falls in the same 3% to 6% of loan principal a house refinance costs. Non-warrantable projects run meaningfully higher. Compare line items in refinancing closing costs.

The bottom line on refinancing a condo

Refinancing a condo is a two-approval process: your file and your project. The project side turns on published thresholds, no more than 15% of units 60 or more days past due on assessments, no more than 35% commercial space, replacement reserves funded at 10% or more of the budget, and no litigation over safety or structural soundness. Clear those and you’re priced as a conventional borrower, plus Freddie Mac’s 0.750% condominium credit fee above 75% LTV. Miss one and the loan moves to a portfolio lender, which costs more but still closes. And plenty of files, detached units, small projects, agency-owned loans refinanced without cash out, skip project review altogether.

If you’re ready to refinance your condo, talk to Align Lending. We’ll shop your scenario across our lender network, including portfolio lenders that take non-warrantable projects, and show you the pricing side by side. Call 248-506-5727 or start online.

Footnotes:

1. Align Lending is not acting on behalf of or at the direction of FHA or HUD. FHA condominium project approval, Single-Unit Approval and cash-out refinance requirements are set by HUD in Single Family Housing Policy Handbook 4000.1 and related Mortgagee Letters, and are subject to change. Return to text.

2. Align Lending works with VA-approved lenders and is not endorsed or sponsored by the Dept. of Veterans Affairs or any government agency. VA condominium approval and IRRRL seasoning requirements are set by VA and by federal statute. Loan-to-value limits described as lender overlays are set by individual lenders in Align’s network, not by VA. Return to text.

3. Example figures in this article are hypothetical and for educational purposes only; they do not constitute an advertisement of credit terms or a rate quote under federal or state lending laws. Your rate, fees and terms depend on your application, your project’s status and market conditions, and will be itemized on your Loan Estimate and Closing Disclosure. Return to text.

Sources: no more than 15% of total units 60 or more days past due on common expense assessments and on each special assessment, and an HOA budget funding replacement reserves of at least 10% of the budget, Fannie Mae Selling Guide B4-2.2, Full Review Process. Non-residential or commercial space not exceeding 35%; single-entity ownership limits of 2 units in projects of 5 to 20 units and 20% in projects of 21 or more units; litigation relating to safety, structural soundness, habitability or functional use; the 10%-of-funded-reserves test for minor litigation and anticipated damages; and unfunded repairs above $10,000 per unit due within 12 months, Fannie Mae Selling Guide B4-2.1-03, Ineligible Projects. Waiver of project review for detached units, 2 to 4 unit projects, 5 to 10 unit projects not part of a master association, and Fannie Mae-owned loans refinanced as limited cash-out refinances at a maximum 80% LTV, Fannie Mae Selling Guide B4-2.1-02, Waiver of Project Review. Established-project delinquency limits and Exempt From Review treatment of detached units, 2 to 4 and 5 to 10 unit projects and Freddie Mac-owned no cash-out refinances, Freddie Mac Single-Family Seller/Servicer Guide Sections 5701.5 and 5701.7. Condominium Unit Credit Fee in Price of 0.000%, 0.125% and 0.750% by LTV band, the exemption for detached condominium units, and cash-out ineligibility above 80% LTV, Freddie Mac Single-Family Seller/Servicer Guide Exhibit 19, Credit Fees, Bulletin 2026-09, effective July 1, 2026. Six-month borrower ownership requirement and 12-month first-mortgage seasoning on cash-out refinances, Fannie Mae Selling Guide B2-1.3-03, Cash-Out Refinance Transactions. Value acceptance terminology, the Collateral Underwriter prior-appraisal and overvaluation-flag conditions, the bar on exercising an offer when an appraisal is obtained for the transaction, and the four-month offer age limit, Fannie Mae Selling Guide B4-1.4-10, Value Acceptance (Appraisal Waiver). Condominium Project Questionnaire, Fannie Mae Form 1076 / Freddie Mac Form 476, retirement of Form 1077, and the Individual Condominium Unit Appraisal Report, Fannie Mae Form 1073. Single-Unit Approvals limited to 10% of total units and to no more than two FHA-insured mortgages in projects with fewer than 10 units, HUD Mortgagee Letter 19-13 and Handbook 4000.1; Single-Unit Approval property eligibility conditions of at least five Units, a certificate of occupancy issued at least one year ago or prior occupancy, and an Owner Occupancy Percentage of at least 50 percent, HUD Handbook 4000.1 II.A.8.p.iii. Maximum 80% LTV and CLTV on FHA cash-out refinances, HUD Mortgagee Letter 2019-11; 12-month ownership and occupancy as principal residence, HUD Handbook 4000.1. Streamline Refinances not requiring Condominium Project Approval or Single-Unit Approval, HUD Handbook 4000.1 II.A.8.p.i. VA project approval required before units are eligible and VA no longer accepting HUD/FHA condominium approvals as of December 7, 2009, VA Lender’s Handbook Chapter 16 and VBA Circular 26-09-19. IRRRL seasoning of 210 days after the first payment due date plus six consecutive monthly payments, 38 U.S.C. § 3709 and VBA Circular 26-19-22. Refinance costs of 3% to 6% of loan principal, My Home by Freddie Mac. Loan Estimate delivery within three business days of application and Closing Disclosure delivery at least three business days before consummation, 12 CFR § 1026.19(e) and (f); right of rescission through midnight of the third business day, 12 CFR § 1026.23 and Consumer Financial Protection Bureau. 2026 baseline conforming loan limit of $832,750 for one-unit properties and high-cost ceiling of $1,249,125, Federal Housing Finance Agency.

This article is for informational purposes only and is not intended to provide legal, financial, or tax advice. Agency project standards, program limits, fees and loan limits change and vary by lender, project and loan program; confirm your figures with your Loan Estimate and Closing Disclosure and consult a qualified professional about your situation. Figures shown are illustrative, are not a rate quote or an offer of credit, and are subject to change. Align Lending is an independent Michigan mortgage broker, NMLS #2041154.