Why It’s Getting Harder to Buy or Sell a Condo in an HOA—and What You Need to Know

Why It’s Getting Harder to Buy or Sell a Condo in an HOA—and What You Need to Know

If you’re thinking about buying or selling a condo in Colorado, especially one that’s part of a homeowners association (HOA), there’s something important you should know: it’s becoming harder to get the insurance needed to keep these communities running—and that’s having a big ripple effect on real estate.

Whether you're a homeowner trying to sell, a buyer looking for your next home, or just someone keeping an eye on the market, these changes could impact you.

Here’s what’s going on—broken down in simple terms:

Why HOAs Are Struggling with Insurance Right Now

• Insurance premiums are skyrocketing
  Some condo communities are seeing their insurance costs double or even triple. For example, a community in Aurora had to raise monthly fees from $325 to $525 just to keep up with rising premiums.

• High deductibles are making properties ineligible for loans
  To keep premiums affordable, some HOAs are choosing higher deductibles. But there’s a catch: if the deductible is too high (over 5% of the property's value), Fannie Mae and Freddie Mac may decide the property doesn’t qualify for a loan. That means fewer buyers can get financing to buy there.

• Deferred maintenance is causing red flags
  When HOAs put off important repairs to keep costs down, it can lead to even bigger problems. Lenders are now looking closely at how well a property is maintained—and if there are concerns, the whole community can get blacklisted.

• More condos are landing on the “do not lend” list
  As of early 2025, over 200 condo projects in Colorado were on Fannie Mae’s ineligible list—meaning they’re not eligible for standard loans. That makes selling those units much harder.

• Cash buyers or alternative loans may be the only option
  When a condo community is blacklisted, sellers may be forced to find cash buyers or turn to non-traditional lenders, which can be more expensive and complicated.

 What This Means for You

If you’re buying or selling a condo, especially in an HOA, these issues might affect the sale process—and your wallet. That’s why it’s more important than ever to work with a real estate team that understands the local market and these evolving challenges.

At Legacy 100 Real Estate Partners, we’re here to help you navigate it all. We stay on top of these trends and know how to guide our clients through tricky situations like insurance hurdles and financing roadblocks. Whether you’re looking to buy with confidence or sell without surprises, you can count on us to be in your corner.

—

?? For more in-depth coverage, check out the original article by The Colorado Sun: Why there are a growing number of unsellable condos in Colorado.

Let us know if you want help figuring out your next move—we’re always just a call or click away.