Supporting Resilient Condo Ownership
Plan for long-term costs, reduce financial surprises, and support access to reliable financing.
Helping condo communities plan for the future
Condos can be an affordable path to homeownership, especially for first-time buyers. Keeping condo ownership affordable over time also means preparing for major repairs, maintaining adequate insurance protection, and supporting the financial health of the community.
Condo and co-op communities rely on HOAs, condominium owners associations (COAs), co-op boards, and similar governing organizations to manage shared finances, property needs, and insurance. For simplicity, we use “HOAs” on this page to refer to these organizations collectively.
Prospective buyers
Spot potential financial or repair risks before you buy, helping you make a more informed decision and prepare for future costs.
Current condo unit owners
Build stronger reserves for future repairs, helping your community plan ahead and reduce the risk of large, unexpected expenses.
HOAs, boards, managers, and firms
Use clearer standards for reserves, documentation, project eligibility, and property insurance to help manage risk and support long-term financial health.
Real estate professionals
Help buyers make informed decisions and move eligible transactions through the financing process more efficiently.
How Fannie Mae supports affordable, resilient condo communities
Preparing for future expenses, maintaining appropriate insurance, and understanding a project’s financial health can help protect homeowners and support access to financing. Fannie Mae’s condo and property insurance requirements work together to address these priorities.
More flexibility for condo property insurance
Fannie Mae provides HOAs with flexibility to meet property insurance requirements while keeping important protections for owners and communities.
- Roof coverage is based on actual cash value.
- Inflation guard coverage is not required in master policies.
- Per-unit deductibles of up to $50,000 give HOAs more flexibility.
- HOAs and lenders have many ways to prove adequate insurance coverage.
A clearer picture of your community’s financial health
Understanding an HOA’s financial position helps buyers and owners plan, reduce unexpected costs, and support access to financing.
- A full project review looks at the HOA’s finances.
- Another full review may not be needed for projects with a current Fannie Mae or FHA approval.
- Established projects aren’t subject to an investor-concentration limit for project eligibility.
Building reserves for future repairs
Beginning January 4, 2027, our minimum reserve requirement for applicable condo projects will increase from 10% to 15% of annual budgeted assessment income. This is not a Fannie Mae fee.
- This means, on average, an additional $13 – $14 a month.
- A reserve study is not always required. Lenders can use the project budget or financial information to verify the 15% reserve level.
- The 15% is a Fannie Mae standard, not a cap.
Training: Understanding Engineers’ Reports
Strengthen your HOA’s ability to plan ahead and protect your property.
