Buying a River Condo? Read the HOA Budget Before the View

A condo near the river is two purchases: the unit you can see and a share of a building and a budget you can't. Before you fall for the balcony, get the association's budget, reserves, insurance and meeting minutes, check the flood map, and ask your lender early whether the building qualifies for your loan. Then pick a real estate agent who has done condo paperwork before.

Key takeaways

• Condo loans got stricter in 2026. Fannie Mae retired its lighter "Limited Review" of established condo buildings for loan applications dated on or after August 3, 2026 (Fannie Mae LL-2026-03).
• Reserve rules tighten January 4, 2027. For full reviews, the association's budget must put at least 15% of assessment income into replacement reserves, up from 10% (Fannie Mae LL-2026-03).
• Kentucky hands buyers a paper trail. State law requires a condo seller to provide the declaration, bylaws, rules and an association certificate covering dues, special assessments, reserves, budget and lawsuits (KRS 381.9203).
• Indiana is thinner. Put your document list and review period in the offer instead of assuming a statute will deliver it.
• Flood is a building question and a unit question. Find out what the association's insurance covers, then price your own coverage before the inspection period ends.
• Condo experience is a fit filter. Ask an agent how they pace document review, lender questions and insurance quotes. Sunset talk doesn't count.

Table of contents

1. Why a condo is really two purchases
2. The condo lending rules that changed in 2026
3. The documents to get, and when
4. Near the river: flood questions for the building and the unit
5. How to tell if an agent actually knows condos
6. Build the offer timeline around the paperwork
7. Getting introduced to an agent who fits
8. FAQs

---

Why a condo is really two purchases

Short answer: you buy a unit, and you also buy into an association's finances, insurance and repair plans. The second part decides your future bills.

With a house, the roof is your problem and you can see it. With a condo, the roof, the elevator, the parking garage and the balconies usually belong to everyone, and the association pays for them out of dues, reserves or special assessments. A low monthly fee can mean an efficient building. It can also mean a board that has been putting off a big bill.

That's why condo buying in Jeffersonville or Louisville leans on documents more than a house hunt does. A good real estate agent knows which documents to ask for, when to ask, and which questions to send to your lender, insurance agent or attorney. They don't have to answer those questions themselves. They have to make sure they get asked in time.

---

The condo lending rules that changed in 2026

Short answer: if you're using a conventional loan, the building itself has to pass a review, and Fannie Mae made that review stricter this year. Ask your lender to check the building before you're deep into an offer.

Many conventional loans are written to Fannie Mae or Freddie Mac rules. For condos, those rules look at the whole project as well as your unit. In March 2026, Fannie Mae announced changes in Lender Letter LL-2026-03 (Fannie Mae):

• No more Limited Review. Established condo projects used to qualify for a lighter review. For loan applications dated on or after August 3, 2026, they need a Full Review, or a waiver if the project qualifies.
• Small buildings got an easier path. Projects with 10 or fewer units can now qualify for a Waiver of Project Review. Projects of 5 to 10 units can't be part of a master association or larger development.
• Reserves go up. Starting with loan applications dated January 4, 2027, a Full Review requires replacement reserves of at least 15% of the association's annual budgeted assessment income, up from 10%.
• Unit owner insurance matters more. The master policy's per-unit deductible can't exceed $50,000 (for applications dated on or after July 1, 2026), and if there is a per-unit deductible, you need your own unit owner's policy that covers it.

Here are the project numbers a lender checks under Fannie Mae's Full Review, as of October 2026:

What the lender checks	Fannie Mae limit	Source
Replacement reserves in the budget	At least 10% of budgeted assessment income now. At least 15% for applications dated on or after Jan. 4, 2027	Full Review Process, LL-2026-03
Owners behind on dues	No more than 15% of units 60 or more days past due	Full Review Process
One owner holding many units	No more than 20% of units in projects of 21 or more units. No more than 2 units in projects of 11 to 20	Ineligible Projects
Commercial space	No more than 35% of the project or building	Ineligible Projects
Unfunded critical repairs	Project is ineligible if repairs over $10,000 per unit are needed within 12 months and aren't funded	Ineligible Projects
Master policy per-unit deductible	No more than $50,000 per unit	LL-2026-03

Pending lawsuits about the building's safety, structure or habitability can also make a project ineligible (Fannie Mae). That's why the meeting minutes matter.

These are Fannie Mae's rules. FHA, VA, Freddie Mac and portfolio lenders each have their own. If you're using FHA, ask your lender to check HUD's list of approved condominium projects. HUD also allows single-unit approval in some buildings that aren't on the list (HUD FHA Connection). Your lender makes the call on eligibility, not your agent and not us.

---

The documents to get, and when

Short answer: get the budget, reserves, insurance, minutes and special assessment history early enough that you can still walk away. In Kentucky, a statute helps. In Indiana, the purchase agreement has to do the work.

In Kentucky (Louisville)

Kentucky's condominium law requires a seller to give the buyer, before the contract is signed or otherwise before closing, a copy of the declaration, bylaws and rules, plus a certificate from the association (KRS 381.9203). The certificate covers:

• The monthly assessment, and any unpaid regular, emergency or special assessment owed by the seller
• Any other fees unit owners pay
• Capital spending the association expects this fiscal year and, if known, the next two
• Reserve balances, and what they're set aside for
• The latest balance sheet, income and expense statement, and the current budget
• Unpaid judgments, suits where the association is a defendant, and suits where it's a party with more than $10,000 in dispute
• The association's insurance coverage

The association must provide the certificate within 10 days after the selling owner asks in writing. If it's late, the buyer can void the contract until the certificate arrives and for 5 days after, or until closing, whichever comes first (KRS 381.9203). The section applies to condos created before 2011 too, for events after January 1, 2011 (KRS 381.9103). Your attorney can tell you how it applies to your contract.

In Indiana (Jeffersonville, Clarksville, New Albany)

Indiana's closest rule is part of its seller disclosure law. For property governed by a homeowners association, the seller must provide the recorded governing documents and a statement of assessments at least 10 days before closing (IC 32-21-5-8.5). Whether and how that applies to a particular condo is a question for an Indiana real estate attorney.

Either way, 10 days before closing is late to discover a special assessment, and that rule doesn't mention budgets, reserves or minutes. So on the Indiana side, ask your agent to write the document list and a review period into the offer.

What to ask for on both sides of the river

Document	What you're looking for
Current budget	How much of the budget goes to reserves, and whether dues cover real costs
Reserve study, if there is one	Big items coming due (roof, elevator, balconies, garage) and whether savings match
Board meeting minutes, last 12 to 24 months	Leaks, repairs being put off, lawsuits, talk of assessments
Special assessment history and plans	What's approved, what's being discussed, what you'd owe
Master insurance policy summary	What the building policy covers inside your unit, the deductible, and flood coverage
Rules and bylaws	Rental limits, pets, parking assignments, renovation rules

Ask your agent who will walk you through these at a plain-English level, and which parts should go to an attorney. Good agents have a clear answer.

Shopping condos in Jeffersonville, Louisville, or both? Start a Match Profile and say "condo" and "near the river" in your answers.

---

Near the river: flood questions for the building and the unit

Short answer: find out the flood zone, what flood coverage the association carries on the building, and what a policy for your unit would cost. Do it during your inspection period.

The flood map is an address-level question, and it's free to check:

• Anywhere: the FEMA Flood Map Service Center. Zones starting with A or V are high risk, and flood insurance is required in them if you have a government-backed mortgage (FloodSmart).
• Jeffersonville: the city's floodplain management page has an interactive map. The Building Commissioner's office at City Hall keeps flood maps and elevation certificates for buildings in the high-risk area.
• Elsewhere in Southern Indiana: the state's Indiana Floodplain Information Portal.
• Louisville: MSD's floodplain maps page links to its floodplain determination tool and LOJIC map layers, including the local regulatory floodplain.

Then ask the condo-specific questions:

1. Does the association carry flood insurance on the building? The master policy is separate from yours. Ask for the declarations page, not a verbal yes.
2. What would my own policy cost? FEMA's flood program covers condo owners. Building coverage goes up to $250,000 and contents up to $100,000 (FloodSmart). Your insurance agent can explain how a unit policy works alongside the building's.
3. Has the building had water before? Look in the minutes, and ask about garage and ground-floor storage. Most belongings kept in a basement aren't covered by flood insurance (FloodSmart).
4. When does coverage start? NFIP coverage usually starts 30 days after purchase, with no wait when you buy it as part of getting a mortgage (FloodSmart).

For county flood claim history and average policy costs, see Flood Insurance Claims in Southern Indiana and Louisville. For how a Jeffersonville agent should handle flood maps on any home, see How to Find the Right Real Estate Agent in Jeffersonville, IN.

If an agent says "that building doesn't flood" or "you won't need coverage," that's not their call to make. Treat it as a fit problem.

---

How to tell if an agent actually knows condos

Short answer: ask about process. An agent with condo experience talks about documents, lender reviews and deadlines. One without it talks about the view.

A single-family specialist can be excellent and still be thin on condo paperwork. Use the interview to find out.

Ask this	A useful answer sounds like	A red flag sounds like
"What documents do we request, and when?"	A specific list and a date tied to the contract deadlines	"The HOA will send whatever we need"
"How do we find out if this building works for my loan?"	"I'll get your lender the building info this week, before we're locked in"	"Condos are fine for financing"
"What would make you tell me to walk away from a building?"	Thin reserves, a big unfunded repair, lawsuits, an assessment nobody can explain	"I've never had a deal fall apart"
"How do we handle flood and insurance near the river?"	Check the map, get the master policy, get a quote during the inspection period	"That area doesn't flood"
"What tripped up your last condo buyer?"	A real story, with names left out, and what they'd do differently	Only lifestyle talk: restaurants, sunsets, walkability

For more interview tests, see Real Estate Agent Interview Red Flags. If you're weighing a condo against a new build, New Construction vs. Resale covers what changes in agent fit there.

---

Build the offer timeline around the paperwork

Short answer: condo deals have more moving parts than a house, so leave room for document review, the lender's building review and an insurance quote.

Ask your agent how they'd write the offer so you have time to:

• Receive and read the association documents before your review deadline
• Get your lender's answer on the building, not only on you
• Get flood and unit owner insurance quotes
• Talk to an attorney if something in the documents worries you

Then ask what happens if one of those comes back badly. A good agent can tell you what your contract lets you do and by when. For the full step-by-step from preapproval to closing, see our buyer timeline. For budgeting, the affordability calculator can help you see how HOA dues change your monthly number.

---

Getting introduced to an agent who fits

Short answer: tell us it's a condo, tell us it's near the river, and we'll factor that in when we pick who to introduce.

Agent Intro is an introduction and referral service of Aire Realty, LLC, an Indiana-licensed real estate brokerage, serving buyers and sellers in Southern Indiana and Greater Louisville.

1. Fill out a Match Profile. Note condo, single-family or either, and the cities you're shopping in: Jeffersonville, Louisville or both.
2. A member of our team will review your Match Profile.
3. We introduce you to one of our vetted local real estate agents, with a note on why we think they fit. You decide whether to hire them.

Browsing first? See the Jeffersonville buyers page, the Louisville buyers page, or all buying paths. Read how we choose agents and how it works. Already talking to an agent and not sure about their condo experience? Second Opinion gets you one alternative introduction to compare.

Disclosure: The agent we introduce may be affiliated with Aire Realty, LLC, which operates Agent Intro. If so, we tell you when we make the introduction. Agent Intro earns a referral fee when an introduction leads to a closed transaction. When the introduction is to a partner brokerage, that brokerage pays the fee to Aire Realty, LLC. Full details are on our Disclosure page.

This post is general information, not legal, insurance, lending or flood advice. Rules change. Confirm flood zones with FEMA or your local floodplain office, loan eligibility with your lender, coverage with a licensed insurance agent, and contract questions with a real estate attorney.

---

FAQs

What documents should I get before buying a condo?

The current budget, reserve study if there is one, 12 to 24 months of board minutes, special assessment history and plans, the master insurance policy summary, and the rules and bylaws. In Kentucky, the seller must also provide an association certificate under KRS 381.9203. In Indiana, write your document list and review period into the offer.

Did condo loan rules change in 2026?

Yes, for loans sold to Fannie Mae. Its Limited Review was retired for applications dated on or after August 3, 2026, and the reserve requirement for a Full Review rises from 10% to 15% of budgeted assessment income for applications dated on or after January 4, 2027. Ask your lender how its rules apply to the building.

Do I need flood insurance for a condo near the Ohio River?

It's required if the building is in a high-risk zone (A or V) and you have a government-backed mortgage. Either way, find out what flood coverage the association carries on the building and get a quote for your own unit during the inspection period. This is general information, not insurance advice.

Where do I check the flood zone for a condo in Jeffersonville or Louisville?

Use the FEMA Flood Map Service Center for any address. Jeffersonville's floodplain management page has a city map, and Louisville MSD offers a floodplain determination tool and LOJIC map layers.

Does condo experience matter when choosing a real estate agent?

Yes, as a fit filter. Ask how they request documents, how they check a building with your lender, and what would make them tell you to walk away. Answers about the view or the neighborhood alone are a signal.

How do I tell Agent Intro I'm shopping for a condo?

Say so in your Match Profile, along with the cities and whether being near the river matters. A member of our team will review your Match Profile and use those details when choosing which of our vetted local real estate agents to introduce.