What Full Review Actually Looks At
Program and regulatory figures verified September 18, 2026. Details change; confirm your scenario with us.
Projects fail for a short list of reasons. Knowing which one applies tells you whether it is fixable, and on what timeline.
The usual reasons
| Reason | What it means | Fixable? |
|---|---|---|
| Reserve funding | The budget allocates too little to replacement reserves. The threshold rises to 15% on January 4, 2027 | Only by the board, on a budget cycle |
| Delinquency | Too many owners behind on assessments | Slowly, through collections |
| Litigation | Pending suits involving the association, particularly construction defect or structural claims | On the litigation's timeline, not yours |
| Insurance | Master policy coverage below requirements, or unavailable at a workable price | At renewal |
| Special assessments | Large assessments outstanding or pending, especially for structural work | Depends on scope |
| Deferred maintenance | Inspection reports showing significant unaddressed repairs | Only by doing the work |
| Single-entity ownership | One owner or entity holding too large a share of units | Sometimes, on resale |
| Owner-occupancy | Too few units owner-occupied for the loan type | Slowly, if at all |
The distinction that matters to you
Some of these are building problems. Some are paperwork problems. And one of them, as of January, is neither.
A project whose reserve line sits at 10% is not deteriorating. It is doing exactly what it has done for years, to a standard that has since moved. That is worth understanding if you own there, because it means the building is not necessarily in trouble even though the financing is.
It also means the timeline is a budget cycle rather than a construction project. Boards adopt budgets annually, so a project that falls short in January may resolve within a year — which does not help you if you are trying to close next month.
What to do with this
Ask the listing agent or the association which item failed. A declined loan usually names the reason, and the reason determines your options. Reserves and paperwork are one kind of problem. Active structural litigation is another.
Either way, the unit is often still financeable through a route that does not require project review.
We are a lender. Association budgets, reserve studies and governance decisions belong to the board, its management company and association counsel. What we can tell you is what those decisions do to an owner's ability to finance or sell.
Frequently asked questions
What is the most common reason a condo project fails review?
Reserve funding is the item most likely to change a project's status in the near term, because the required allocation rises from 10% to 15% of budgeted income assessment on January 4, 2027. Delinquency, litigation and insurance are the other frequent causes.
Can a condo project become warrantable again?
Often yes, depending on the reason. A reserve shortfall can be addressed in the next annual budget. Litigation resolves on its own schedule. Structural deferred maintenance takes as long as the work takes. The reason determines the timeline.
Does a special assessment make a project non-warrantable?
Not automatically. Full Review considers special assessments alongside the budget, reserves, delinquency, insurance and litigation. A large or structural assessment carries more weight than a modest, funded one, and the overall picture decides it.
Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content about financing, not a loan commitment and not legal, tax, accounting or association-governance advice. Agency project standards change; association budgets, reserve studies and governance decisions belong to the board, its management company and association counsel. Loans are subject to borrower and property qualification, and not all projects or borrowers will qualify.