08/17/2026
Monday Brief on condos:
Condo financing rules tightened August 3
For Freddie Mac loan applications received on or after August 3, 2026:
* Streamlined condo review has been eliminated.
* If a reserve study is used, the association’s budget must fund its highest recommended reserve allocation.
* That recommendation cannot use “baseline funding,” under which reserves approach but never fall below zero.
* Beginning January 4, 2027, the standard budget allocation for replacement reserves rises from 10% to 15% of annual assessment income when the reserve-study alternative is unavailable.
* Freddie relaxed the 50% owner-occupancy test for established condo projects, which may help investor-heavy buildings.
* HO-6 requirements now receive greater scrutiny when the master policy has a per-unit deductible.  https://guide.freddiemac.com/app/guide/bulletin/2026-C
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