For conventional loans on units in an established condo tower, any application dated on or after August 3, 2026 means the lender has to look past the buyer and review the building itself. That review covers the association's finances, its insurance and its maintenance records. In the Turtle Creek and Uptown high-rises, where a single association can stand behind every unit in a tower, the condition of those records now goes a long way toward deciding how many buyers can actually close on a unit, and on what timeline.

Texas already gives buyers a way to see much of what the lender will see before they are locked in. That tool is the condominium resale certificate. Read with the new federal rules in mind, it is the most informative document in a condo purchase. It also has one gap that matters more this year than it used to.

What changed in 2026, in the order it takes effect

Fannie Mae published Lender Letter LL-2026-03 on March 18, 2026. Freddie Mac issued a matching bulletin, 2026-C, the same day. Their effective dates fall across the fall and winter selling season:

1. July 1, 2026. If the building's master insurance policy has a per-unit deductible, that deductible can be no more than $50,000. The buyer must then carry an HO-6 policy with coverage at least equal to it.
2. August 3, 2026. Fannie Mae retired the Limited Review process for established condo projects. Lenders now have to use a Full Review, unless the project qualifies for a waiver. Waivers are generally limited to very small projects of ten or fewer units, so they do not apply to a Turtle Creek tower. Also from this date, a building that relies on a reserve study must budget the study's highest recommended reserve amount. The baseline method, which lets the reserve balance run down toward zero, is no longer accepted.
3. January 4, 2027. For applications dated on or after this date, the minimum share of the annual budget set aside for replacement reserves rises from 10% to 15%.

Fannie Mae explains the reasoning in the letter. It found a link between condo projects with underfunded reserves and projects that need critical repairs, and it says owners in those buildings can face "unexpected special assessments or higher regular assessments or dues." Freddie Mac's later updates in May and Fannie Mae's August 5 Selling Guide update added these changes to the official guides. Neither one reversed them.

The January date is about three months away. A buyer who goes under contract this fall and applies for a loan after the new year will be underwritten against the 15% floor, even if the purchase started in 2026.

Why the building's paperwork now affects the price

MetroTex, the Dallas-area Realtor association, summed up the practical effect in April. If a board is "disorganized, behind on their reserve study, or slow to respond to document requests, it can stall a closing." Associations that fall short of the new reserve floor "risk becoming essentially unfinanceable by Fannie and Freddie."

For a seller, that changes who can buy. A unit in a building that passes Full Review is open to anyone with conventional financing. A unit in a building that doesn't pass is mostly limited to cash buyers and to loan programs outside Fannie and Freddie. Two units with the same floor plan, view and finishes can draw buyer pools of very different sizes for reasons the listing photos will never show.

A shortfall in a building's reserves doesn't go away. It usually shows up later as higher dues or a special assessment. Twenty-One Turtle Creek is a good example of the kind of capital project these rules are aimed at. The structural contractor describes a $1.1 million restoration of the 105,000-square-foot underground garage, including concrete repairs, new ramps and stairs, waterproofing and slab work. According to Action Property Management, the building's management firm, the plan was to seek financing so that owners who couldn't pay a special assessment in cash wouldn't have to. Neither account gives a date or a per-unit figure. The example shows the type of project, not the cost. In an older tower, garages, balconies and pools come up for major work eventually, and the reserve fund decides whether owners pay for it gradually through dues or all at once.

The resale certificate covers most of what the lender will check

Under Texas Property Code §82.157, a seller must give the buyer the declaration, bylaws, rules and a resale certificate that was prepared no more than three months before it is delivered. The certificate has to disclose:

• the current operating budget and periodic dues
• any unpaid common expenses or special assessments owed by the seller
• capital expenditures the association has approved for the next 12 months
• reserve amounts, including reserves set aside for specific projects
• judgments against the association and pending lawsuits
• the association's insurance coverage for unit owners
• itemized fees for transferring ownership

The TREC certificate form, Form 32-5, also requires the operating budget, an insurance summary and the balance sheet as attachments. It itemizes any reserve contribution the buyer must make at closing.

Here is how the certificate lines up with the 2026 rules:

The insurance line affects the buyer's own costs as well. If the master policy has a per-unit deductible, the buyer's HO-6 coverage must be at least that amount. Get an HO-6 quote based on the actual deductible during the termination window, not after.

Timing, cost and the gap in what's disclosed

The association has 10 days after the unit owner's written request to provide the certificate. Since September 1, 2025, Senate Bill 711 has capped the preparation fee at $375. That cap covers the certificate itself, not other transfer charges, which are itemized separately. Under paragraph 2C of the TREC Residential Condominium Contract (Resale), Form 30-18, the buyer can terminate within seven days after receiving the certificate and get the earnest money back. Unlike the general HOA addendum TREC uses for other property types, this right is written into the condo contract itself.

The gap is this. The statute requires disclosure of assessments that are currently due and capital spending that has already been approved. It does not expressly require disclosure of a special assessment that has been discussed but not yet voted on. A building that has to raise its reserves to meet the January floor may be in exactly that position this fall. To find out, use the seven-day window to request recent board minutes and the latest reserve study, and ask your lender whether it has started its project review. None of those steps is required by statute. Each one can show you something the certificate doesn't.

Market conditions give buyers time to check

In August 2026, the most recent month reported, the Dallas-Plano-Irving division recorded 157 condo sales, down 14% from a year earlier. The median price was $257,500, the median time on market was 74 days, and there were 8.6 months of inventory. Townhomes in the same division had 5.9 months of inventory. These figures cover the whole division, not Turtle Creek or Uptown alone. The public MetroTex reports do not break results out for individual neighborhoods. September figures are expected around October 20.

With that much condo inventory, buyers aren't under pressure to waive the seven-day review. Condo buyers this fall have both the time and the contract right to read a building's books before they commit, and the lender will read them either way.

For sellers, the same conditions mean a unit in a well-documented building has an edge that is easy to show. Ordering the resale certificate before listing, collecting the current reserve study and confirming the master policy deductible lets a buyer's lender start its review right away, and it gives buyers' agents a clear answer to the question MetroTex is now telling them to ask.

Frequently Asked Questions

Does the January 2027 reserve rule apply if I'm under contract in December? The rule is tied to the loan application date. It applies to applications dated on or after January 4, 2027. Confirm your application date with your lender.

Can the association charge more than $375 for the resale certificate? The $375 cap applies to preparing the certificate. Transfer fees and any required reserve contribution are listed separately on the TREC form.

What if the association doesn't deliver the certificate in time? In that case, get advice from your attorney.

This post is general information, not legal, tax or financial advice. For questions about your own loan or contract, talk with your lender and a real estate attorney.

If you're buying or selling a condo in Turtle Creek or Uptown this season, Katherine Roberts can help you get the resale certificate, reserve study and insurance details organized before your seven-day window starts. Request an appointment to go over the building's documents together.