03/20/2026
Big update from Fannie Mae this week that could impact condo values, financing, and investor strategy.
Key changes include:
• Reserve requirements increasing from 10% → 15% (effective 2027)
• Condo associations must follow the highest funding levels in reserve studies
• Max $50,000 per-unit insurance deductible on master policies
• More responsibility on unit owners (H06 policies) to cover gaps
• More flexibility on insurance (including roofs) to address rising premiums
Why this matters:
Fannie Mae backs a large portion of residential mortgages, so when they change the rules, lenders follow.
That directly impacts:
• Which condos qualify for financing
• Buyer demand
• Property values
Buildings that don’t meet these standards risk becoming non-warrantable (harder to finance), which can impact resale.
I’ll break this down more over the next few posts.