Condo Questionnaire and HOA Review: Chicago Buyer's Guide

Last reviewed: September 25, 2026 · Chicago Condo Loans Editorial Team · How we research

Quick answer: When you finance a Chicago condo, your lender sends a condo questionnaire to the building’s association or management company. It asks about the budget, reserves, delinquent dues, lawsuits, insurance, ownership, commercial space, and building safety. The lender uses the answers to decide whether the building meets the loan program’s rules. Separately, Illinois law gives you a right to key association documents, the Section 22.1 disclosures, within 10 business days of a written request. Reading both carefully is the best way to spot a financing problem, or a costly special assessment, before it surprises you.

This is part of our complete guide to condo loans in Chicago.

The condo questionnaire vs. the 22.1 disclosures

	Lender condo questionnaire	Section 22.1 disclosures
Who asks for it	Your lender	The seller, on behalf of you as the prospective buyer
Who fills it out	Association board or management company	Association board or management company
What it’s for	Deciding whether the building meets loan program rules	Giving buyers key facts about the association and the unit
Standard forms	Fannie Mae Form 1076 / Freddie Mac Form 476 for conventional loans; HUD-9991 for FHA single-unit approval; many lenders use their own versions	Set by the Illinois Condominium Property Act (765 ILCS 605/22.1)
Deadline	Set by the association’s process and your contract timeline	Within 10 business days of a written request
Fee	Set by the management company; varies	Capped at $375 (adjusted yearly for inflation), plus up to $100 for delivery within 72 hours

Illinois’s fee cap applies to 22.1 disclosures. Ask your attorney about any fee you think is excessive.

What the condo questionnaire asks

The standard Fannie Mae and Freddie Mac full questionnaire (Form 1076/476) covers:

Basic project information: legal name, number of units, amenities, and any rental or occupancy restrictions.
Completion and developer control: whether construction is finished and whether owners have taken control from the developer.
Conversions: whether the building was converted or rehabbed, and when.
Financial information: delinquent dues, lawsuits, and whether mortgage lenders who take over a unit through foreclosure are liable for unpaid assessments.
Ownership: how many units are owner-occupied, second homes, or rentals, and whether any single owner holds many units; also commercial space.
Insurance and financial controls: master policy, flood coverage, fidelity coverage, and how association accounts are managed.
Building safety and structural integrity: inspections, known deficiencies, needed repairs, and how repairs will be funded.

The building-safety section was added after the 2021 Surfside condo collapse in Florida. It’s where problems like failed façade inspections, unfunded structural repairs, or water intrusion come to light. Under Fannie Mae’s rules, buildings with serious unfunded repairs, including repairs costing more than $10,000 per unit that should be done within 12 months, are ineligible.

Why the questionnaire matters more in 2026

For conventional loan applications dated on or after August 3, 2026, Fannie Mae and Freddie Mac retired their limited and streamlined reviews. Most established buildings now need a full review, which relies on the full questionnaire rather than a short form. Budgets must also include the highest reserve contribution recommended in the building’s reserve study, and the minimum reserve allocation rises from 10% to 15% on January 4, 2027. More of your approval now depends on how the association answers.

How to read the HOA documents like a lender

1. The budget and reserves

Find the line for replacement reserves. Divide it by the total annual assessment income. Below 10% is a red flag for both conventional and FHA loans, and 15% is the conventional full-review target starting January 4, 2027.
Check the reserve balance against what’s coming. The 22.1 disclosures must list planned capital expenditures for the current and next two fiscal years.
If there’s a reserve study, compare what it recommends contributing with what the budget actually contributes. Fannie Mae now requires the budget to use the highest recommended amount.

2. Delinquencies

Ask how many units are 60 or more days behind on assessments. Above 15% of units is a problem for both conventional and FHA loans, and rising delinquencies can strain the association’s cash.

3. Lawsuits

The 22.1 disclosures must state the status of pending lawsuits and judgments. Collection suits against owners are routine. Lawsuits over construction defects, structural problems, or safety are much more serious and can make a building ineligible for conventional loans.

4. Special assessments and upcoming projects

Look in board meeting minutes, the budget, and the capital expenditure list for roof, masonry, façade, elevator, plumbing, or window projects. Ask directly whether a special assessment has been approved or is being discussed, and make sure your contract says who pays it.

5. Façade and structural reports

For buildings 80 feet or taller, Chicago’s façade ordinance requires regular inspections by an Illinois-licensed architect or structural engineer. Ask for the latest report. A report that finds the building unsafe, or that calls for major repairs, is a key detail your lender will need.

6. Insurance

Check the master policy type, the deductible, and whether you’ll be responsible for part of it. You’ll need your own HO-6 (walls-in) policy, and your coverage should account for the master policy’s deductible.

7. Rentals and ownership

Rental caps can matter if you might rent the unit later. A single investor owning many units can make a building non-warrantable, and FHA requires at least 50% owner occupancy.

Timeline: when each document comes in

Before you offer: ask your agent for the building’s reputation, and ask your lender whether the building has had issues.
After your offer is accepted: request the 22.1 disclosures right away. Your attorney review period is the time to act on what you find.
After you apply for the loan: your lender orders the questionnaire. Management companies often take days or weeks and charge a fee.
Underwriting: the lender reviews the questionnaire with the budget, insurance, and other documents. Questions or missing items can add time.
Before your financing contingency expires: confirm the condo review is approved.

Questions to ask the association

What percentage of the annual budget goes to reserves, and is there a current reserve study?
Are any special assessments approved or under discussion?
How many units are 60 or more days delinquent?
Is the association involved in any lawsuits other than dues collection?
When was the last façade or structural inspection, and what did it find?
What is the master insurance deductible, and how is it allocated to owners?
Is the building FHA- or VA-approved, and when does that approval expire?
Does any one person or entity own more than one unit? How many?

Frequently asked questions

Who pays for the condo questionnaire?

Usually the buyer, often through the lender. The management company sets the fee.

What if the association won’t fill out the questionnaire?

Your lender can’t complete a full review without the information. Some lenders will accept the questionnaire in their own format, and your agent or attorney can press the association. Without it, you may need a lender that doesn’t require one, such as some portfolio lenders.

Is the 22.1 disclosure the same as the questionnaire?

No. They overlap, but the 22.1 disclosures are a legal right of buyers under Illinois law, and the questionnaire is a lender requirement. You’ll typically need both.

Can a bad questionnaire answer kill my loan?

It can make the building ineligible for the loan type you chose. You may still be able to switch programs, such as from conventional to FHA or to a portfolio loan, if the building meets those standards.

Sources

Educational content only, not lending or legal advice. See our Disclaimer.