New condo loan rules are here — Here's what Madison area sellers should do now

Changes are underway in the condominium lending world, and if you're planning to sell your Madison area condo in the next year or two, they are worth understanding now — before they affect your sale. Beginning this month, mortgage lenders will be required to dig deeper into a condo association's finances and insurance before approving a buyer's loan. In plain terms: if your association's budget and insurance don't meet new lending guidelines, it could become harder for your buyers to get a conventional loan — which can slow down a sale. The good news is that with some proactive planning, you and your association can get ahead of it. Here's what's changing, and what we recommend you do about it. (photo courtesy of Step Inside Media) Beginning August of 2026 Lenders will be required to conduct more thorough reviews during the underwriting process. For most condos, this means a closer look at: The condo association financial statements and budget The insurance the condo association carries A recently completed "condo questionnaire" about how the association operates Beginning January of 2027 Underwriting guidelines will require associations to set aside more money for future repairs a...