The Quick Read: You clear the questionnaire by ordering it before you spend money on an appraisal, sending it to the right person at the association, and making sure every answer matches the budget, the insurance policy, and the governing documents. In a small building, one delinquent owner or one litigation note can decide the outcome, so you want clean, complete answers before the lender’s underwriter sees the file.
- The association completes the form, not you. Your job is to get it to the right person and keep it moving.
- A small walk-up has fewer owners, so one unit moves every ratio on the page.
- Self-managed buildings often have no budget or reserve account. Fix that gap before submission, not after.
- Litigation, delinquent dues, and rental-pool features are the answers that sink files. Most other flags are workable.
- Clearing 1.00 coverage on the unit does not clear the building. The two are tested separately.
What Is the Condo Questionnaire?
The questionnaire is a form the lender sends to the homeowners association. The association fills it out and returns it. The lender uses the answers to decide whether the building itself is acceptable collateral, apart from your unit.
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The best-known versions come from the agencies. Fannie Mae’s Selling Guide describes its Form 1076 as a tool that helps lenders gather project-eligibility data, and treats the form as optional for agency loans. Freddie Mac publishes a paired version, Form 476.
DSCR loans are not agency loans. Across our wholesale network, each program sets its own project standard and its own version of the form. The agency forms are the template most of them are modeled on, which is why they are a useful preview of what you will face.
Key Terms Defined
DSCR (debt service coverage ratio): The property’s monthly rent divided by its monthly PITIA. A ratio of 1.00 means rent equals the full obligation.
PITIA: Principal, interest, taxes, insurance, and association dues. This is the full monthly obligation the rent is measured against.
Warrantable: A condo building that meets a lender’s project standards. A non-warrantable building fails at least one standard and gets a more conservative review.
Condotel: A building run like a hotel, with nightly rentals, front-desk operation, or rental pooling. It is the tightest class of condo.
Reserves (building level): Money the association sets aside for major repairs. This is different from your personal reserves as a borrower.
Special assessment: A one-time charge to owners to fund a repair or shortfall.
What Does the Lender Actually Check?
Across the agency condo questionnaire forms, including the Freddie Mac version, the same topics repeat in nearly every version:
- Developer control of the association, and whether the project is complete
- A unit census split among owner-occupants, second-home owners, and investors
- Multiple units held by one owner
- Active or pending litigation, with attorney documentation if the answer is yes
- Delinquent dues
- Flood and master insurance coverage
- Separate operating and reserve accounts, plus a reserve-study question
- Hotel-style or rental-pooling features
- A structural-deficiency addendum
Think of it as two tests. Your unit passes on rental coverage. The building passes on the questionnaire. The strongest files clear both: enough rental coverage and a building a lender will accept.
Condo dues also sit inside PITIA, so they lower your coverage ratio compared with an identical house. That is one more reason to get the association’s budget early.
Why a Small Walk-Up Behaves Differently
In a tower, one delinquent owner is a rounding error. In a four-unit walk-up, one delinquent owner is a quarter of the building. The same goes for investor concentration and for your own purchase. When you buy a unit, you change the building’s ratios.
Three things change in a small building.
Some questions become irrelevant. Amenity, phasing, and developer-control questions are usually “not applicable” in an older walk-up. Answer them as such, and do not leave them blank. A blank looks like an unanswered question to an underwriter.
Some questions become decisive. Delinquency, reserves, and insurance carry far more weight when there are only a few owners to absorb a problem.
The association may barely exist. Small buildings often have no manager, no formal budget, and no reserve account. None of that means the building is unsound, but the form will make it look that way unless you prepare.
Many lenders also use a shorter form for two-to-four unit projects. One large bank correspondent publishes a 2-4 unit questionnaire that asks about common-area completion, whether one entity owns more than one unit, special assessments, and litigation. It is an agency-style example, not a DSCR rulebook. It shows how small-project forms are shaped.
Step by Step: From Contract to Cleared
1. Identify the building type. Confirm the property is condo-titled and how many units the regime has. A condo in a small regime is reviewed as a condo, even if it looks like a duplex.
2. Ask for the budget and questionnaire before you pay for an appraisal. A failed building review is a sunk cost.
3. Send the form to the right person. In a managed building, that is the management company. In a self-managed building, the board president or treasurer usually completes it, according to The HOA Guide.
4. Attach the supporting records. Expect the lender to ask for the current budget and the master insurance policy. Lenders commonly request these after the contract is signed, not at pre-approval.
5. Follow up on a schedule. A volunteer board does not watch email like a property manager. A short, polite check-in every few days keeps the request visible.
6. Read the answers before the lender does. Compare the form against the budget and the insurance certificate. Fix contradictions first.
7. Hand the file over complete. Missing HOA paperwork is a common reason a condo file stalls.
The form is not the approval. It gathers information. The underwriter reads the answers against the program’s tolerances and may ask for more.
Who Fills It Out in a Self-Managed Building?
The association completes it, and no federal rule forces an association to answer a lender’s questionnaire. If the board refuses, the lender cannot finish its project review, and your DSCR loan stops there.
In a self-managed building, a board officer signs. The HOA Guide notes that self-managed associations sometimes charge nothing for the form, while management companies usually charge a flat document fee plus rush surcharges. Expect a low-hundreds range when a fee applies.
Make the board’s job easy. Send a short cover note that says who you are, which unit you are buying, what the form is for, and when you need it back. Attach the form, and offer to answer questions. Volunteers respond to clear, small requests.
Tell them accuracy matters. Wrong answers can create legal trouble for the person signing, so a volunteer should answer only what they can document.
DSCR vs. conventional financing
There are two common ways to finance an investment property, and they qualify you differently — here’s how investors weigh them.
Why investors choose it
- Qualifies on the property’s rental income — no personal tax returns, W-2s, or pay stubs needed to document income.
- No personal debt-to-income ceiling to clear, so existing mortgages and obligations don’t cap your borrowing the same way.
- Can be closed in an LLC, keeping the property inside a business entity.
- Built for scaling — not held to the limit on number of financed properties that conventional financing applies.
- Underwriting centers on the deal: generally qualifies when the rent covers the payment, a 1.00x coverage ratio being a common baseline (confirmed in underwriting).
- Designed specifically for investment property, including long-term and, where the program allows, short-term rentals.
Where it’s strong
- Often the lowest ongoing financing cost for a buyer who fully qualifies on personal income — a fit for a first property or a cost-first purchase.
Trade-offs for investors
- Requires full personal income documentation and must fit within a debt-to-income limit — salary, existing debts, and other mortgages all count.
- Typically held in your personal name rather than a business entity.
- Caps how many financed properties you can carry, which can become a ceiling as a portfolio grows.
- Evaluates you as a borrower as much as the property, which usually means more paperwork.
How investors usually choose: a first or single property often optimizes for the lowest financing cost; portfolio builders often optimize for leverage, vesting in an LLC, and scaling past conventional caps. The right answer depends on your goals, the property, and current guidelines — both paths run through select lenders in Lendmire’s wholesale network, with eligibility and terms confirmed in underwriting.
What Separates a Clean Answer From a Flag
| Topic | What the lender checks | Clean answer | Likely flag |
|---|---|---|---|
| Litigation | Active suits, especially defects | None, or minor and insured | Construction-defect suit |
| Delinquent dues | Share of units behind | None, or one on a plan | Several units behind |
| Reserves | Separate account and budget | Funded, documented | No account, no budget |
| Insurance | Master policy coverage | Certificate matches the form | Informal or missing policy |
| Ownership mix | Single owner holding units | Few units per owner | One entity holds many |
| Rental features | Pooling, front desk, deed limits | Standard leasing | Condotel traits |
Litigation tops the list. One HOA-document explainer, Governingdocs, calls construction-defect suits the most common financing killer in this category. Rental-pooling or front-desk operation can lead lenders to decline outright.
Everything else is usually workable with explanation and documents. A building flagged as non-warrantable does not mean no DSCR loan. It means a more conservative review, which in our network typically brings lower leverage and a lower loan-size cap rather than an automatic decline.
Worked Example: One Late Owner, One Other Investor
Picture a four-unit walk-up with no manager. One owner is behind on dues. A second unit is owned by another investor. You are buying a third.
The board treasurer fills out the form. Delinquency is the question to handle with care. One unit in four is a large share, so do not leave the answer vague. Ask the treasurer to state which unit is behind, how long, and whether a payment plan exists. Attach the ledger.
The investor mix matters less than people assume. Governingdocs reports that the agencies dropped their 50% investor-concentration limit in March 2026, while keeping owner-occupancy requirements. That is an agency contrast, and DSCR programs set their own rules. But a building flagged only for investor mix may now qualify under agency rules, so check before assuming you need a non-agency loan. LLC borrowers are reviewed subject to lender program eligibility.
Then the numbers. Say the rent covers the full PITIA at roughly 1.2x. That clears a 1.00 floor, which is where select programs start. Most files we place in this range come in at 75%-80% LTV on a purchase, and select high-leverage programs reach 85% LTV with a score around 700 or better. The building review is separate. If the underwriter treats the late owner as a concern, the likely result is a conservative adjustment, such as lower leverage, not a flat decline.
Clearing 1.00 also does not mean the property cash-flows. DSCR compares rent to PITIA only. Repairs, vacancy, management, and utilities sit outside the calculation.
When the Questionnaire Comes Back Bad
You have four moves: cure it, document it, reroute it, or walk away.
Cure it. If dues are late, ask the owner to pay or document a plan. If the reserve account does not exist, ask the board whether it can open one. A fix before submission beats an explanation after.
Document it. If litigation is minor, attach the attorney letter the form calls for. If insurance is informal, get a certificate from the carrier.
Reroute it. A different program in the network may treat the same building differently. One uses a stricter project standard, another a more flexible one. Some programs exclude self-managed projects entirely, and others do not. This is where seeing many lenders’ guidelines helps. Programs differ on the same questionnaire.
Walk away. Active defect litigation, rental pooling, and condotel traits are the answers that most often end a file. A building that is hard to finance is also harder to sell. A bad questionnaire is a warning about your exit, not just your loan. And a building that passes today can flip: a condo can turn non-warrantable after a lawsuit or a spike in delinquencies, which can shrink your future buyer pool.
Pre-Submission Checklist
- The form answers match the budget, the insurance certificate, and the governing documents.
- Every question has an answer. “Not applicable” is written out, not left blank.
- Delinquencies are explained with dates and a ledger.
- Litigation, if any, has attorney documentation attached.
- The master policy certificate is current.
- You checked the governing documents for any short-term-rental restriction. Short-term rental rules can vary by city, county, HOA, and property type, so investors should confirm local rules before relying on projected rental income.
Frequently Asked Questions
Can a self-managed HOA complete the questionnaire?
Yes, in most cases. A board officer, usually the president or treasurer, fills it out and signs. Some programs exclude self-managed projects, so ask early which programs are open to your building.
How long does the association take to respond?
It depends on the association, and timing is largely outside your control. Managed buildings tend to respond more reliably than volunteer boards. Request the form before you spend on an appraisal, and follow up on a schedule.
Can I reuse a questionnaire from another lender?
Sometimes, but not reliably. Each program has its own form and its own required topics. Ask the lender’s program team whether a completed form covering the same topics can be accepted before you ask the board to start over.
Does a non-warrantable result end the deal?
No. It usually means a more conservative review, with lower leverage and a lower loan-size cap. Active defect litigation, heavy delinquency, or condotel features can still end a specific file.
Does a DSCR loan skip the condo review?
No. Qualifying primarily on property-level rental income covering the payment, subject to lender guidelines, does not remove the building review. The unit and the building are tested separately.
If you are buying or refinancing a rental property and want to see how the numbers work, Lendmire can help you compare DSCR loan options based on the property income, credit profile, leverage, and investor goals. For the full picture of how these programs fit together, see the complete DSCR loans guide. Lendmire’s piece HOA Questionnaire Requirements for a Condo Cash-Out Refinance covers the refinance side. Lendmire is a broker arranging DSCR financing through select lenders in its wholesale network, across 41 markets including Washington, D.C. Program terms are subject to lender guidelines, and nothing here is a commitment to lend.
Tax treatment varies; consult a qualified professional.
About Lendmire
A non-QM mortgage broker (NMLS# 2371349), Lendmire arranges DSCR financing for real estate investors in 41 markets — 40 states plus Washington, D.C. Because deals are underwritten primarily on property cash flow rather than personal income documentation, the structure suits self-employed buyers and entity-owned portfolios. Lendmire places loans through wholesale investor lenders; it is not a direct lender. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. Fannie Mae Selling Guide B4-2.1-01
3. 2-4 Unit Projects Questionnaire
5. Governingdocs.dev: condo financing
This article is part of Lendmire’s DSCR loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: How to Requalify a Condo on DSCR After a Dues or Insurance Jump · Can an Investor With a W-2 Job Skip the Bank for a DSCR Loan? · How to Underwrite a Condo Package on a DSCR Loan Across LLCs
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Legal disclosures. Lendmire (NMLS# 2371349) is a state-licensed mortgage brokerage that arranges financing through wholesale lender relationships. Lendmire is not a direct lender, depository institution, or registered financial advisor. The discussion above is general informational content about real estate financing — it is not financial, legal, or tax advice, and readers should consult licensed professionals for guidance on their individual circumstances. Loan inquiries are subject to lender underwriting; this article does not represent a commitment to lend. Loan terms, rates, and qualification standards vary by borrower, property, and state, and are subject to change at any time. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.