08/07/2026
New rules from Fannie Mae and Freddie Mac are changing how condo mortgages are underwritten, and the effects are already being felt by buyers and owners. As of August 3, 2026, the faster limited review option—once available for a significant share of loans—has been replaced by fuller project reviews for most condominium buildings.
Lenders now take a closer look at association finances, reserve funding, delinquencies, and insurance. Beginning in early 2027, the minimum budget allocation for reserves rises from 10% to 15% of annual assessment income. These adjustments build on earlier efforts to strengthen oversight after the Surfside collapse and aim to promote safer, more financially stable communities.
Buyers may encounter longer approval times or denials if a building’s documentation or reserves fall short. A non-warrantable project can also limit resale options down the road, so it pays to request the HOA’s budget, reserve study, and insurance details early in the process.
Owners could see higher monthly dues as associations work to meet the new reserve standards. That pressure adds to rising costs that have already driven a nearly 40% increase in HOA-related foreclosures over the past two years. Whether you are considering a purchase, listing a unit, or simply managing your current condo, staying informed and working closely with your lender or real estate professional can make a real difference.
What questions do you have about navigating these updates?
