10/16/2026
What does a condo association’s 2027 budget have to do with financing? More than you might think.
Beginning January 4, 2027, Fannie Mae and Freddie Mac will increase the minimum replacement reserve allocation for applicable condo projects from 10% to 15% of annual budgeted assessment income. This is only on condo buildings with 11 or more units total.
Why does that matter now? Many condo associations are setting their 2027 budgets this fall. What gets adopted now could affect financing eligibility for buyers applying next year.
It’s also a good reminder that with condo financing, the property matters too. Factors involving the condo project itself can affect financing—not just the individual buyer.
Whether you’re considering buying or selling a condo, or you’re a real estate professional working with someone who is, bring us into the conversation early.