What Condo Buyers Need to Know About Financing in Mammoth Lakes Right Now

If you’re thinking about buying a condo in Mammoth Lakes—or already in escrow—there’s something important happening behind the scenes that could impact your financing: Fannie Mae and Freddie Mac have tightened their condo lending requirements, with a big focus on deferred maintenance and structural safety.

Here’s what that means in plain terms:

Lenders are now taking a closer look not just at the individual unit you’re buying, but also at the health of the entire condo complex. Most lenders have always looked at the health of the entire compex, what is new is the focus. If there are unresolved issues—like aging balconies, signs of water intrusion, or structural concerns—your loan could be delayed or even denied, even if your specific unit looks great.

Key Things Buyers Should Know:

• The SB 326 Balcony Inspection is now a requirement for most California HOAs with three or more units. This report checks for the safety of balconies, decks, and elevated walkways. Lenders want to see this inspection is completed—and that any flagged repairs are being addressed.
• Recent inspection reports (within the last 3 years) are required for both structural and mechanical components. If any critical issues are found (think: structural damage or anything related to health and safety), they must be repaired before the complex can be approved.
• Regular maintenance or cosmetic issues (like chipped paint or worn carpet) won’t raise red flags. This is specifically about safety and structural integrity.

If you’re buying a condo, ask these questions early:

• Has the HOA completed the SB 326 inspection?
• Are there any critical repairs identified?
• Are repairs scheduled or already completed?
• Are HOA docs up-to-date and accessible?

Why This Matters in Mammoth

Many buildings in Mammoth were built decades ago and have been exposed to extreme weather over the years. Most are well-maintained, but HOAs that delay inspections or repairs could unknowingly make financing difficult for future buyers.  It is important to confirm whether the HOA has completed the required inspections and is actively addressing any necessary repairs. It’s also important to review the master insurance policy to ensure coverage meets current lending guidelines.

If you’re in escrow or actively looking, while we cannot review the HOA docs for you, we can provide guidance on the right questions to ask and help you flag potential concerns that might affect financing.  It’s always better to know before you fall in love with a property.  Even better, we know which lenders have certain complexes pre-approved making the financing process easy and attractive to sellers (they like to know the project is pre-approved as this helps minimize the risk of a last minute cancelation).  

Want to read more about the updated Fannie Mae guidelines?
Click here: Fannie Mae Condo Guidelines PDF

• Pages 3–8 cover critical repairs
• Pages 9–10 talk about condotels (common in resort towns like Mammoth)