Who fills out the condo lender questionnaire?

Usually the property management company or board treasurer responds to the lender's form. Buyers rarely complete it themselves but may pay a fee for processing.

Can I buy if the building fails condo project review?

Sometimes with portfolio or non-agency loans, larger down payments, or cash. Conventional agency eligibility is stricter. Ask your loan officer before assuming you can proceed.

Does cash buyers skip the questionnaire?

Cash purchases skip lender project review, but you should still read the same association documents. Insurance, assessments, and reserves affect you regardless of financing.

How is FHA condo approval different?

FHA maintains approved condo lists and spot-approval options with their own occupancy, budget, and insurance tests. Verify status on HUD's condo lookup or through your lender before you write an offer.

What if occupancy is below lender limits?

Investor-heavy buildings may require non-owner-occupant buyers, larger down payments, or may be ineligible for some programs. Compare buildings or loan types early.

Guide

Condo Lender Questionnaire Explained

What lenders ask on the condo questionnaire, how project review affects closing timelines, and why occupancy and reserves can block financing.

By True Condo Cost editorial team · Editorial standards

Financing a condo means the bank reviews the building—not just your credit. The lender questionnaire covers occupancy, reserves, insurance, and litigation.

Understand project review early so slow management or ineligible status does not surprise you after you go pending.

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Last updated: May 2026

What a condo lender questionnaire is

When you finance a condominium, the lender evaluates you and the project. The condo questionnaire—sometimes called a project review form—is how the bank learns whether the association meets agency rules for occupancy, reserves, insurance, litigation, and commercial mix.

Condo lender questionnaire

A standardized form the lender sends to the association or management company covering project eligibility, owner-occupancy, budget health, insurance, and legal status.

Fannie Mae, Freddie Mac, FHA, and VA each publish condo approval criteria. A building can look fine on a tour but fail project review because investor concentration is too high or litigation is unresolved.

What underwriters ask the association

Questionnaire topic	Why lenders care	Buyer takeaway
Owner-occupancy ratio	Agency limits on investor concentration	High rental share can block conventional loans
Single-entity ownership	One owner controlling many units adds risk	Sponsor or investor blocks may need exceptions
Budget and reserves	Operating stability and capital planning	Thin reserves can trigger manual review or denial
Master insurance	Building insurability and deductible size	Non-renewals and Citizens placement get scrutiny
Litigation	Open suits affect insurability and costs	Construction defect or slip-and-fall suits are common flags
Commercial space %	Mixed-use projects have occupancy caps	Retail-heavy podiums may limit loan options
Special assessments	Current and pending owner charges	Active assessments can affect debt-to-income math

Exact thresholds depend on loan program—your loan officer interprets agency guides.

Conventional loans often require owner-occupancy above agency minimums (commonly 50%+ for many programs—verify current guides with your lender)
FHA and VA require project approval or spot approval where available
Second-home and investment loans may face stricter occupancy tests
Questionnaire turnaround can take one to three weeks if management is slow

How project review affects your timeline

Full project review adds days or weeks after you are under contract. Some lenders order the questionnaire as soon as you go pending; others wait until underwriting. A slow management company can push you past closing dates if your contract is not written with buffer.

Ask your loan officer at pre-approval whether the building needs full review or is on an approved list.
Confirm who pays the questionnaire fee and how long management typically takes to respond.
Request a draft resale packet yourself—you will see many of the same figures the lender will verify.
If review flags ineligible status, compare portfolio lenders, larger down payment, or a different building before waiving financing contingencies.

Match the building to your loan type

FHA-first buyers should verify FHA condo approval status early. VA buyers need VA project approval. Conventional buyers still face occupancy and litigation screens even without a formal FHA ID.

Documents that overlap with buyer diligence

Current annual budget and reserve study summary
Master insurance declarations and renewal dates
Owner-occupancy and rental restriction counts
Pending and approved special assessment notices
Litigation disclosure letters from association counsel
Minutes showing insurance committee or reserve funding votes

Reading these before the lender does helps you spot walk-away signals early. See also signs to walk away from a condo and reading a condo budget.

Example: Illustrative delay scenario

You go pending on day one. Management takes 18 days to return the lender questionnaire. Underwriting needs another 10 days. If your financing contingency expires on day 21, you may need an extension or risk losing earnest money—even though your personal credit is strong.

Frequently asked questions

Who fills out the condo lender questionnaire?: Usually the property management company or board treasurer responds to the lender's form. Buyers rarely complete it themselves but may pay a fee for processing.
Can I buy if the building fails condo project review?: Sometimes with portfolio or non-agency loans, larger down payments, or cash. Conventional agency eligibility is stricter. Ask your loan officer before assuming you can proceed.
Does cash buyers skip the questionnaire?: Cash purchases skip lender project review, but you should still read the same association documents. Insurance, assessments, and reserves affect you regardless of financing.
How is FHA condo approval different?: FHA maintains approved condo lists and spot-approval options with their own occupancy, budget, and insurance tests. Verify status on HUD's condo lookup or through your lender before you write an offer.
What if occupancy is below lender limits?: Investor-heavy buildings may require non-owner-occupant buyers, larger down payments, or may be ineligible for some programs. Compare buildings or loan types early.

Sources to verify before buying

Use this checklist during due diligence. Calculators help you plan; these documents tell you what a specific building actually costs.

HOA budget and most recent financial statements
Reserve study and percent-funded summary
Master insurance policy declarations and renewal terms
Board meeting minutes from the past 12–24 months
Pending or approved special assessment notices
County or municipal property tax estimator for the unit
HO-6 insurance quote matched to master policy coverage
Lender condo questionnaire or project approval status

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