Fannie Mae Retired Limited Review: Why Your Summit County Condo Loan Could Stall

Can you still get a conventional loan on an older Breckenridge condo now that Fannie Mae retired Limited Review?

Yes, but on a Breckenridge or Summit County condo the HOA now gets a full financial review before your conventional loan closes, and how the building handles rentals can matter as much as your down payment.

You're under contract on a two-bedroom condo in Breckenridge. Your credit is clean, your 25% down payment is sitting in savings, and the inspection came back with nothing you can't live with. Then your lender calls about the building: its budget, its insurance, or the way half the units get booked by the night.

Until this summer, a lot of Summit County second-home buyers never got that call. Under Fannie Mae's old Limited Review, a second home in an established condo project could qualify with up to 75% loan-to-value, which is exactly where a buyer putting 25% down lands. As an example, on a $700,000 condo that's $175,000 down, and the lender looked at the project lightly. For loan applications dated on or after August 3, 2026, that shortcut is gone.

This post walks through what changed, why it lands harder in Summit County than in most places, and the short list of documents to pull before you write an offer.

What Changed on August 3, 2026

Fannie Mae announced the change in Lender Letter LL-2026-03 on March 18, 2026. The letter says plainly, "We are retiring the Limited Review process," and lenders must comply for all loan applications dated on or after August 3, 2026. Freddie Mac retired its matching Streamlined Review on the same date in Bulletin 2026-C.

Here's what that means for an attached condo in an established project:

• More than 10 units, or part of a master association: the lender runs a Full Review. That puts the HOA's budget, reserves, master insurance, delinquencies, litigation, and special assessments in front of the lender before your loan can be sold to Fannie Mae.
• 10 or fewer units, not part of a larger development or master association: the project may qualify for Fannie Mae's Waiver of Project Review, which also covers detached condo units.

Many condo buildings in Breckenridge, Frisco, Dillon, Silverthorne, and Keystone fall in the first group, and a master association pushes even small buildings into Full Review.

Why Summit County Condos Feel This More

A Denver Metro condo buyer usually plans to live in the unit. A Summit County condo buyer often plans to ski it, rent it some weeks, and visit when the snow is good. That second-home pattern is exactly the one the old 75% Limited Review lane served, so the change reaches a bigger share of mountain buyers.

The other reason is rentals. Fannie Mae won't buy loans in projects that operate like hotels, and a Full Review is where those questions get answered.

The Short-Term Rental Question

Fannie Mae's Project Standards FAQs (August 2026) define a project as "primarily transient in nature" when the predominant use of the units is short-term rentals of less than 30 days. The same FAQ says that if transient use is the project's only condotel characteristic, the project is still ineligible.

There's a middle ground that matters in ski towns. Projects that let owners rent seasonally while they live in their units for a significant part of the year don't meet that "primarily transient" test, as long as the project has no other condotel characteristics.

Other items on Fannie Mae's Ineligible Projects list show up in Summit County buildings:

• Projects managed and operated as a hotel or motel, even with individually owned units
• Mandatory rental pools
• Legal documents that restrict when owners can occupy their own unit
• A legal or common name containing "resort," unless the lender confirms the name is a naming convention and the project isn't marketed or run as a transient resort

That last one surprises people. A building with "Resort" in its name isn't automatically out, but it gets extra review.

Reserves and the Reserve Study

Since August 3, 2026, if the HOA budget is based on a reserve study, the lender must confirm the budget includes the study's highest recommended reserve allocation. The baseline funding method is no longer allowed.

The bigger step comes next. For applications dated on or after January 4, 2027, the minimum reserve allocation rises from 10% to 15% of the HOA's annual budgeted assessment income, under both Fannie Mae and Freddie Mac.

Here's a worked example. An HOA that collects $400,000 a year in dues met the old floor with $40,000 going to reserves. Under the new floor it needs $60,000. A board that hasn't adjusted its budget by then could leave buyers with applications dated after January 4 facing a project that doesn't pass.

Insurance, Special Assessments, and Litigation

A Full Review also looks at:

• Master insurance: for applications dated on or after July 1, 2026, coverage must equal at least 100% of the estimated replacement cost of the project improvements, with a cap on the per-unit deductible.
• Special assessments: if an assessment is tied to a critical repair that hasn't been fixed, the project is ineligible.
• Pending litigation: an HOA named in pending litigation is ineligible, with exceptions for minor cases.
• Single-entity ownership: in projects of 21 or more units, one owner can hold no more than 20% of the units.

What to Check Before You Make an Offer

You don't need to wait for the lender to find a problem. Ask for these early, ideally before you write, and no later than your Association Documents Deadline in the Colorado contract:

1. Unit count and master association. This tells you if the building falls under Full Review or might qualify for a waiver.
2. The current HOA budget. Divide the reserve line by total assessment income. Under 15% means the January 2027 rule is worth a direct question to the board.
3. The reserve study, and whether the budget funds its highest recommended amount.
4. The rental setup. Is there a front desk, a mandatory rental program, or any limit on owner use? How many units rent nightly?
5. Special assessments, both approved and under discussion, and what they pay for.
6. Meeting minutes from the past year. Litigation, insurance problems, and deferred repairs usually show up there first.
7. The master insurance certificate and its deductible.

Then hand everything to your lender and ask them to start the condo questionnaire with the management company right away.

If the Building Doesn't Pass

A project that fails Fannie Mae's standards is often called non-warrantable. You can still buy there with cash or with a portfolio loan that the lender keeps on its own books. Those loans often come with different terms than a conventional loan, so get a quote before you commit. The same issue cuts the other way when you sell, because fewer buyers can finance the unit.

Jamie Bridges, a REALTOR® with Keller Williams Realty DTC, works with second-home buyers across Summit County, from Breckenridge to Keystone and Copper Mountain. His Resort and Second-Home Property Specialist (RSPS) designation focuses on resort and second-home markets like this one, and his advice for any Summit County condo is the same: get the HOA documents before the offer goes in, so the condo review doesn't surprise you after inspection.

Frequently Asked Questions

Can I use a conventional loan on a Breckenridge condo that allows short-term rentals? It can. Fannie Mae's guidance says projects where owners rent seasonally while living in the units for a significant part of the year aren't "primarily transient." A project where nightly rentals are the predominant use, or that runs like a hotel, is ineligible.

Does the new 15% reserve rule apply to my Summit County condo purchase right now? It applies to loan applications dated on or after January 4, 2027. If you apply before then, the 10% minimum still applies, but the highest-recommended-allocation rule for reserve studies has applied since August 3, 2026.

What is a non-warrantable condo in Colorado? It's a unit in a project that fails one or more Fannie Mae or Freddie Mac project requirements, so the loan can't be sold to them. Buyers typically use cash or a portfolio loan instead.

If a condo in Breckenridge, Frisco, Keystone, or anywhere else in Summit County is on your list, start with the building. Jamie Bridges is a REALTOR® with Keller Williams Realty DTC serving the Denver Metro Area and Summit County, Colorado. Call or text Jamie at 720-397-7555 to talk through a building before you write an offer.

Sources: Fannie Mae LL-2026-03 and Freddie Mac Bulletin 2026-C (both March 18, 2026), plus Fannie Mae's Selling Guide and FAQs as posted August 2026. Dollar figures are hypothetical examples. General information only, not lending or legal advice.