Limited Review is gone, and your association's budget is no longer a private document
Limited Review is gone, and your association's budget is no longer a private document
2026-09-15 · Oklahoma · Compliance
The shortcut is closed. Limited Review — the process that let a lender approve a conventional condominium loan on a low-loan-to-value established project without examining the association's budget, reserves or insurance — no longer exists.
The confirmation is structural rather than announced. Fannie Mae's Selling Guide project-eligibility section index, published September 2, 2026, lists five topics: B4-2.2-01 Full Review Process; B4-2.2-02 Full Review: Additional Eligibility Requirements for Units in New and Newly Converted Condo Projects; B4-2.2-03 FHA-Approved Condo Review Eligibility; B4-2.2-04 Project Eligibility Review Service; and B4-2.2-05 Projects with Special Considerations.1 There is no Limited Review topic, and the historical Limited Review URL now returns a 404.
Freddie Mac retired Streamlined Review on the same date and expanded its “Exempt From Review” category to 2–10 unit projects.2
What it means in practice
Every conventional condominium loan now runs either Full Review or a waiver. There is nothing in between.
That has one immediate consequence for a board: the lender questionnaire is no longer optional, and the association's budget is no longer a document that stays inside the community. Under Full Review the lender reads the budget, computes the reserve percentage, examines the master policy, asks about litigation, asks about delinquencies, and asks about critical repairs.
What the lender is now reading, and what fails
The reserve percentage. Currently at least 10% of the budget in replacement reserves; rising to 15% for applications dated on or after January 4, 2027.
Delinquencies. From B4-2.2-01: “No more than 15% of the total units in a project are 60 days or more past due in the payment of each special assessment.”
Critical repairs. This is the one that matters most to Oklahoma boards, because it turns a maintenance decision into a property-value decision. Selling Guide B4-2.1-03, Ineligible Projects, defines the category: “Projects in need of critical repairs are those needing repairs or replacements that significantly impact the safety, soundness, structural integrity or habitability of the project's building(s),” including “material deficiencies, which if left uncorrected, have the potential to result in or contribute to critical element or system failure within one year” and “any unfunded repairs costing more than $10,000 per unit that should be undertaken within the next 12 months.”3
The consequence is categorical: “If the inspection report indicates there are unaddressed critical repairs, the project is ineligible until the required repairs have been completed and documented accordingly.” And for the severe case: “A project with an evacuation order due to an unsafe condition, either for a partial or total evacuation of the project's building(s), is ineligible until the unsafe condition has been remediated and the building(s) is deemed safe for occupancy.”
Why $10,000 per unit is a hail number in Oklahoma
The most common single unfunded repair costing more than $10,000 per unit that should be undertaken within the next twelve months, in an Oklahoma condominium, is a storm-damaged roof the association has decided to defer.
Boards defer roofs for understandable reasons: the claim is still open, the deductible is enormous, the reserve is thin, the assessment would be unpopular. The list of critical-repair examples also includes “any mold, water intrusions or potentially damaging leaks to the project's building(s)” and “[a]dvanced physical deterioration” — which is the second act of a deferred roof.
Deferring it does not just risk leaks. It makes the project ineligible, which freezes resales, which is how a roof decision becomes a property-value decision for every owner in the building.
Who escapes all of this
The waiver categories under B4-2.1-02 are wide and they favour Oklahoma's housing stock: detached condo units; 2–4 unit condo projects; 5–10 unit condo projects not part of a larger development or master association; units in new and established PUD projects; and Fannie-to-Fannie limited cash-out refinances at or below 80% LTV. Manufactured housing is excluded throughout.
Most Oklahoma single-family associations are PUDs, and a PUD is waived. This is a condominium story far more than an HOA story.
What a board can do
Fill the questionnaire out yourself, before a lender sends one. Every question on it is a question about a document the board controls. Finding the failing answer in September is a budget decision; finding it during someone's closing is a crisis.
Deal with the critical-repair item first. A funded repair is not an unfunded repair. A board that adopts a plan and a funding source for the roof has changed the answer, even before the work is done.
Track 60-day delinquencies as a percentage, not a dollar figure. The test is a unit count.
Consider the FHA route if the conventional one closes. FHA condominium project approval standards did not change in 2025 or 2026 — nothing in HUD's mortgagee letters altered them — which makes FHA the more forgiving path for an Oklahoma condominium that has just lost Limited Review.
What to watch next
The updated condominium lender questionnaire. Fannie and Freddie are reported to have issued revised versions in March 2026, but Freddie Mac's own public copy of the joint Form 1076 / Form 476 still prints “December 2021” on every page — so either the public link is stale or the update is a different form. Worth confirming with your lender before filling one in.
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