What's up with the condo blacklist?
What’s Up With the Condo Blacklist? What California Buyers Need to Know in 2025
If you're shopping for a condo in California and your lender suddenly pulls the plug on financing, you might have encountered the mysterious “condo blacklist.”
But what is it, who maintains it, and how does it affect your ability to buy (or sell) a condo in 2025?
Here’s everything you need to know about the condo blacklist in California real estate.
What Is the Condo Blacklist?
The so-called "condo blacklist" is an informal name for a list maintained by Fannie Mae (and a similar one by Freddie Mac) of condo buildings that are ineligible for conventional mortgage financing.
If a condo complex is on the list, buyers can’t get a standard Fannie Mae-backed loan, which makes the property harder to finance—and harder to sell.
This list includes thousands of condo projects nationwide, and many of them are in California cities like Los Angeles, San Francisco, Oakland, and San Diego.
Why Do Condos End Up on the Blacklist?
Fannie Mae flags condo buildings as “unavailable” for conventional financing if they fail to meet specific risk and underwriting criteria. Common reasons include:
Structural or safety issues (especially post-Surfside tragedy)
Inadequate insurance coverage
High delinquency in HOA dues
Pending litigation involving the HOA
Deferred maintenance or repairs
Commercial space over 35% of the project
These risks make it harder for Fannie Mae or Freddie Mac to back loans in the project, leaving buyers with limited loan options.
How Do You Know If a Condo Is Blacklisted?
Unfortunately, Fannie Mae doesn’t publicly disclose the condo blacklist. That means:
Buyers and real estate agents may not know until a loan is denied
Lenders have access to the list but typically only check it after a buyer is in escrow
Delays or cancellations can happen late in the transaction
👉 Pro Tip: Work with a lender and real estate agent familiar with the local condo market—especially in complex areas like downtown San Francisco, Marina del Rey, and Walnut Creek—to spot red flags early.
What If the Condo You Want Is on the List?
If the condo you want is on the blacklist, you still have options:
1. Use a Portfolio or Non-QM Loan
Some banks and lenders offer non-conventional financing that doesn’t rely on Fannie Mae guidelines. These loans usually:
Have higher interest rates
Require larger down payments (often 20%+)
May offer more flexibility for unique properties
2. Pay Cash
If you’re a cash buyer, the blacklist doesn’t apply to you. This is one reason condos on the list may sell at a discount—to attract investors or cash buyers who aren’t limited by financing rules.
3. Wait for the Condo to Be Reapproved
Sometimes a condo association can work with Fannie Mae to fix the issues and get reinstated. This takes time and cooperation from the HOA.
How to Avoid the Condo Blacklist When Buying
To reduce the risk of falling in love with a blacklisted property, follow these tips:
Ask your lender to pre-screen the condo complex before making an offer
Request a copy of the condo questionnaire early in the process
Avoid buildings with obvious red flags: lawsuits, low reserves, major repairs, or high investor ownership
Work with an agent who specializes in condo sales in your area
Final Thoughts: The Condo Blacklist Isn’t a Myth—And It Matters
In California’s competitive condo market, the Fannie Mae condo blacklist is a real barrier for many buyers—and an unexpected headache for sellers.
Whether you're buying in Oakland, Long Beach, Santa Monica, or Walnut Creek, make sure you're asking the right questions, partnering with experienced professionals, and exploring alternative financing options if necessary.