Industry update - Fannie Mae & Freddie Mac condo policy

Will your condo still be financeable in 2027?

New conventional-financing rules that could impact property values, sales, and buyer demand. Preparation starts now - waiting creates risk.

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Three dates that change condo lending

Mark the calendar.

{{dates.insurance}} Insurance changes Roof coverage, inflation guard, deductibles, HO-6

{{dates.limitedReview}} Limited review eliminated Full underwriting of HOA financials, every deal

{{dates.reserves}} 15% reserves Up from 10% - a 50% increase in required funding

Whom this affects

If condos touch your business, this touches you

Real estate agents & brokers - listing or selling condo units
Condo HOA boards - setting 2027 budgets this fall
HOA management firms - preparing documentation lenders will demand
Insurance agents - master policy and HO-6 requirements are changing
Condo unit owners - resale value depends on staying financeable

What changes, and when

Before vs. after summary

Category	Before	After
Reserve contribution	10%	15%
Review process	Limited review allowed	Eliminated - full review
Small project waiver	2-4 units	Expanded to 10 units
Investor concentration	Required	Removed
Reserve studies	Flexible	Highest level required
Roof coverage	Replacement cost required	Actual cash value allowed
Inflation guard	Required	Removed
Per-unit deductibles	5% and geographic specific	$50K max
HO-6 policies	Limited	More common

Some rules loosened - but overall scrutiny increased significantly.

Go deeper

See the full briefing

Every date, the reserve math, insurance changes, and the action plan for agents, boards, and owners.

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Questions on a building or a deal?

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