New Freddie Mac and Fannie Mae Condo Mortgage Rule

Big changes are coming to **Fannie Mae and Freddie Mac condo financing requirements**, and condo boards need to understand what they could mean for reserve funding, mortgage eligibility, property values, and the ability of owners to sell their units. Beginning with loan applications dated January 4, 2027, the minimum reserve funding benchmark increases from 10% to 15% of annual assessment income. At the same time, Fannie Mae and Freddie Mac are putting more scrutiny on the financial health of condo associations themselves, not just the finances of individual borrowers. For condo boards, this matters because a financially healthy buyer can still have a mortgage denied if the condo project fails the lender's review. In this video, we break down: • Why Fannie Mae and Freddie Mac rules have so much influence over condo financing • What it means for a condo project to be "warrantable" • Why limited review is disappearing for many established condo communities • How the reserve funding requirement changes from 10% to 15% • What happens when a condo association fails to meet the financing standards • Why these requirements affect condo communities nationwide, even in states without reserve study laws • How an up-to-date professional reserve study may provide another path to qualification • What condo boards should review before January 2027 • How reserve funding can affect unit sales and property values • How Solume helps boards manage their reserve study, budget, contributions, upcoming projects, and long-term financial position in one place One of the most important points in the new standards is that 15% is not necessarily the only path. An association that does not budget the full 15% may still qualify when it has a current professional reserve study and funds reserves according to the highest funding level recommended by that study. That makes knowing your numbers increasingly important. Your board should understand what its reserve study recommends, what it is actually contributing, where its current reserve balance stands, what major expenses are coming, and whether the association is positioned to pass a lender's full project review. CHAPTERS 00:00 New Fannie Mae & Freddie Mac Condo Rules 01:58 Who Are Fannie Mae and Freddie Mac? 04:26 Change #1: Limited Review Is Going Away 06:31 Change #2: Reserve Funding Rises to 15% 07:49 What Happens If Your Condo Misses the Requirement? 09:27 Why This Applies Nationwide 12:07 How Warrantability Can Affect Property Values 14:03 The Reserve Study Alternative to the 15% Rule 16:53 What Condo Boards Should Do Before January 18:40 Why Boards Cannot Simply Rely on Management 20:11 Solume Reserve Study Management Demo 25:53 Using Scenarios to Address Reserve Shortfalls 27:30 Is Your Condo Ready for Full Review? WANT TO SEE HOW YOUR COMMUNITY STACKS UP? Give us 15 minutes and tell us about your community. Before getting into a full software demo, we can help determine whether Solume looks like a good fit for your board and your reserve study management needs. Book a conversation: https://app.getsolume.com/widget/book... Solume is an all-in-one management platform built for HOA and condo communities, with budgeting, financial management, reserve study management, community records, projects, maintenance, and board oversight in one system. If this video was helpful, like, subscribe, and share it with another condo board member or owner who needs to understand the January 2027 changes. This video is intended for educational purposes and should not be considered legal, lending, accounting, or financial advice. Associations should confirm requirements applicable to their specific project with their lender, reserve professional, attorney, or other qualified professional. #CondoAssociation #FannieMae #FreddieMac #ReserveStudy #CondoBoard #CondoFinancing #HOAManagement #CondoManagement #ReserveFunding #Solume