Fannie Mae and Freddie Mac Tighten Condo Mortgage Guidelines

Starting August 3 2026, Fannie Mae and Freddie Mac will enforce stricter lending guidelines for condominiums and homeowners' associations. All loan applications dated on or after that day must undergo a full project review, examining association budgets, reserve funding levels, insurance, delinquencies, special assessments, litigation and any deferred‑maintenance or structural issues. Associations that are under‑funded, under‑insured or otherwise deficient will be deemed ineligible for conventional financing, shrinking the pool of eligible buyers and potentially lowering resale values. Minimum reserve requirements for many projects will rise from 10 % to 15 % of the annual budget beginning in early 2027, and reserve studies must be current (no older than about three years) and funded according to the study’s highest recommendation.

The changes are expected to hit communities with aging condo infrastructure, such as those in New Jersey, particularly hard. To help industry professionals navigate the new rules, the National Association of Realtors will host a webinar on August 11 2026 featuring Fannie Mae’s Director of Collateral Risk Management Jodi Horne and NAR’s Conventional Financing and Policy Committee Chair Rob Harrington.