Fannie Mae
Fannie Mae LL-2026-03: The 15% Condo Reserve Rule Boards Must Meet by January 2027
If your condominium association's 2027 budget puts less than 15% of assessment income into reserves, owners in your building may soon have trouble selling or refinancing. On March 18, 2026, Fannie Mae issued Lender Letter LL-2026-03, a broad update to its condo project standards and property insurance requirements. Fannie says it made the changes in alignment with Freddie Mac and in coordination with FHFA. The headline change for boards: the minimum reserve allocation for condo projects rises from 10% to 15% for loan applications dated on or after January 4, 2027. Most associations are approving next year's budget right now. That makes this the moment to check your number.
MYFrontYard · November 12, 2026