HOATalkNews (Other)
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Posts: 2
Posted:
Anyone have views on this or want to share how it may affect your community?
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On March 18, 2026, Fannie Mae issued Lender Letter LL-2026-03, changing whether buyers in a condominium can get a conventional mortgage. A building's eligibility affects how easily units sell and what they're worth, so boards should note four changes:
Reserves (Jan. 4, 2027): minimum reserve funding rises from 10% to 15% of annual assessment income — which Hirzel Law says "will likely require many associations to increase assessments." Alternatively, fund to the highest level in a reserve study; baseline funding is no longer accepted.
Reviews (Aug. 3, 2026): the "Limited Review" process is retired, so many established condos now face a Full Review of reserves, insurance, and finances.
Insurance (July 1, 2026): master policies must cover 100% of replacement cost, with the deductible capped at $50,000 per unit.
Investors (now): the 50% investor-concentration cap is dropped for established condos under Full Review (single-investor and new-construction limits remain).
Hirzel Law advises getting a reserve study and budgeting accordingly "rather than waiting until a sale is delayed."
Sources: Fannie Mae Lender Letter LL-2026-03, Hirzel Law analysis, and a client alert from Whiteford, Taylor & Preston.
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