In Lombard, Houses and Condos Are Running on Different Clocks

A buyer applying for a conventional loan on a Lombard condo now gets a closer look at the building's finances than a buyer did last spring. Fannie Mae retired its Limited Review process for established condo projects. Lenders had to apply that change to every loan application dated on or after Aug. 3, 2026. Those projects now go through Full Review or, where it applies, Fannie Mae's waiver of project review.

The change lands on a part of the Lombard market that was already moving slowly. In the 12 months through September 2026, Lombard's detached homes sold in an average of 25 days, and its condos and townhouses took 50. None of Lombard's neighbors has a split that wide.

What changed for condo loans in August

Fannie Mae announced the changes in Lender Letter LL-2026-03, dated March 18, 2026. The letter says rising premiums and limited insurance availability are creating problems for borrowers and homeowners' associations in certain areas. It also says Fannie Mae remains focused on the risks of underinsured and underfunded condo projects.

Three changes in that letter matter to a Lombard condo buyer:

• Limited Review is gone. Established projects that used to qualify for the lighter review need Full Review or an applicable waiver for applications dated on or after Aug. 3, 2026.
• Reserve studies are held to their highest number. When a lender relies on a reserve study, it must confirm that the association's budget includes the highest recommended reserve allocation in that study. This also applies to applications dated on or after Aug. 3.
• The reserve minimum rises in January. Under Full Review, associations must budget at least 15% of annual assessment income for replacement reserves, up from 10%. The rule applies to loan applications dated on or after Jan. 4, 2027, which falls within the next two months.

Chicago Agent Magazine reported in August that dropping Limited Review means more condo deals need a deeper look at the HOA, its reserves and its records. The magazine also reported warnings that financing could take longer in buildings with thin reserves or incomplete paperwork. Fannie Mae's Selling Guide can make a project ineligible for significant deferred maintenance or unresolved critical repairs. Lenders must also review any special assessment, including its purpose, its amount and when it will be paid off.

In Lombard, the rule applies to a segment where time on market was already climbing, and where a slower loan file adds days to a calendar that was already long.

Lombard's gap, next to its neighbors

The data below comes from Midwest Real Estate Data's September 2026 Local Market Updates, current as of Oct. 14, 2026. Every figure covers the 12 months through September 2026.

In Villa Park, Glen Ellyn and Elmhurst, houses and condos sell at about the same speed. Lombard is the exception. Its houses sell as fast as any in this group, and its condos and townhouses sell as slowly as Elmhurst's, where attached homes cost about $111,000 more at the median. Lombard's attached homes take longer to sell than Glen Ellyn's or Villa Park's, even though they are priced between the two.

The direction matters too. Over the same 12 months, Lombard's detached median rose 6.3% while its average market time fell from 28 days to 25. The attached median slipped 1.9% while market time rose from 44 days to 50. The two halves of the village moved in opposite directions.

Where the attached side gives a buyer room

The slower clock does not mean buyers are staying away. Lombard's attached closed sales rose 11.2% to 279 in the 12 months through September 2026, and homes going under contract rose 13.9% to 287. More condos and townhouses sold this year than last.

The change is in how they sell. Over the same period, attached sellers received 97.6% of their original list price on average, down from 98.5%. Detached sellers received 100.6%. As an illustration, a $270,000 condo selling at 97.6% of list closes near $263,500. A house selling at 100.6% closes above its asking price. MRED's figures do not include seller concessions, so credits negotiated at closing can widen the real gap. Single months can also look extreme because the samples are small.

Taken together, the attached market has plenty of sales, below-list results and a long average stay on the market. That is where a buyer has room to negotiate. It is also where the HOA's paperwork decides whether that room turns into a closed deal. A $265,000 condo with a strong reserve fund and a building that qualifies for financing is a different purchase from one at the same price in a building facing a special assessment.

DuPage County as a whole shows a calmer version of the same pattern. In September 2026, the county's condo median rose 4.5% to $310,000 while condo sales fell 6.0%, and the single-family median rose 7.9% to $538,000.

A rental with condo finishes at Yorktown

There is another option nearby for anyone weighing a Lombard condo. Synergy Construction & Development built Yorktown Reserve, 276 apartments on the former Carson's parking lot at Yorktown Center, with more than 16,000 square feet of amenities. The Daily Herald reported in June 2026 that the building had just opened and that half the units, the first phase, were already leased. Amenities include a pool, a pickleball court, a gym, a sauna and in-unit washers and dryers. Synergy co-owner Phil Domenico described the units this way in the same article:

"Things that used to be in very expensive condos are now in the apartments."

The Yorktown Reserve floor plans page listed one-bedroom rents of about $2,425 to $2,800 a month when it was posted in August 2026. Advertised rents change often. The building is next to The Square, a new park and gathering space with a glass mall entrance. The Yorktown area also has D.R. Horton's townhouses along the mall ring road, the Overture apartments for residents 55 and older, and Greystar's Elan apartments.

Yorktown Reserve gives a Lombard condo seller a nearby comparison: a monthly rent with new finishes and no special assessments. A condo's monthly payment plus HOA dues gets compared against that number.

The documents that decide a Lombard condo deal

Since the deeper review now applies to established buildings, the association's records belong in the first week of a condo search. Don't wait until the appraisal.

1. The current budget. Fannie Mae's 15% reserve minimum under Full Review starts with applications dated on or after Jan. 4, 2027.
2. The reserve study, if there is one. Lenders must confirm that the budget includes the study's highest recommended reserve allocation.
3. Any special assessment. Fannie Mae's guide looks at its purpose, approval status, original and remaining balance, and payoff date.
4. The master insurance policy. NAR's condo insurance guide explains that the association covers the building and common areas. Unit owners may still owe for deductibles or for losses beyond that coverage, and an individual HO-6 policy may include loss-assessment protection.
5. The building's project status. Fannie Mae's Selling Guide says loans in projects marked "Unavailable" are ineligible. Its Condo Status Finder page suggests buyers ask their HOA or lender about any concerns. For FHA loans, HUD has a searchable list of approved condo projects and explains Single-Unit Approval for some units in projects that are not approved.

This is general information, not legal or financial advice. Lenders apply these rules case by case, so confirm how they affect your loan with your lender and attorney.

FAQ

Is Lombard's condo market slower than Elmhurst's? No. Both averaged 50 days for attached homes in the 12 months through September 2026. Lombard's houses sold in 25 days on average, and Elmhurst's took 48.

Did Lombard condo prices fall? Slightly. The attached median for the 12 months through September 2026 was $265,000, down 1.9% from $270,000 a year earlier. The September-only median of $199,000 comes from 24 sales, a sample small enough to swing sharply from month to month.

Does the January reserve change apply to every condo loan? Fannie Mae ties the 15% minimum to Full Review applications dated on or after Jan. 4, 2027. Some projects may qualify for a waiver of project review instead.

If you own a condo or townhouse in Lombard, your sale has to meet both the 50-day average and the buyer's lender review, so your pricing and your HOA paperwork need to be ready before you list. Maranda Real Estate Group can price your unit against recent Lombard attached sales and help you gather the association documents a buyer's lender will ask for. Start with a Free Home Valuation.