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FANNIE MAE CONDO STANDARDS, 2026

Is Your Condo Building Lender Friendly?

What HOA boards need to know about today's Fannie Mae condo rules — before a buyer's loan application uncovers a problem you didn't know you had.

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See the Checklist ↓
See the Checklist ↓

What Lenders Check

  • Building safety & structural soundness

  • No significant deferred maintenance

  • Financial stability: realistic budget & reserves

Serious issues can make loans in your project ineligible with many lenders — and harder for owners to sell or refinance.

Three questions every lender asks about your building

WHY THIS MATTERS

01 Is the building safe & structurally sound?

02 Is there significant deferred maintenance or are critical repairs needed?

03 Is the association financially stable with a realistic budget and reserves?

Litigation, Code Issues & Transparency

Lenders also review pending lawsuits and code matters that could affect a building's safety, finances, or marketability.

  • Pending lawsuits affecting safety, finances, or marketability

  • Code violations or regulatory actions signaling unresolved concerns

HOW YOUR HOA CAN HELP OWNERS

  • Work with association counsel to manage and resolve matters

  • Keep organized files so lender questionnaires get answered fast

  • Stay transparent with owners and buyers about the plan ahead

Structural Safety & Deferred Maintenance

Fannie Mae focuses on safety, soundness, structural integrity, and habitability. Watch for these red flags:

  • Units or common areas evacuated because of building issues

  • Known structural problems that remain unrepaired

  • Long-term temporary fixes instead of recommended permanent repairs

A LENDER-FRIENDLY HOA DOES THIS

  • Acts quickly on engineer or inspector recommendations

  • Keeps clear records of inspections, reports, and city/code notices

  • Documents a timeline and plan for major work

10%

of annual income should be reserved for a typical Fannie Mae "Full Review," separate from day-to-day operating expenses

BUDGET, RESERVES + SPECIAL ASSESSMENTS

Lenders want to see your association planning ahead

Special assessments usually don't replace the reserve line — lenders view them as a supplement, not a substitute.

  • Include a clear reserve line, ideally informed by a recent reserve study

  • Update the budget annually for realistic maintenance and capital costs

  • Document each special assessment's purpose, amount, and repayment schedule

A five-step checklist for your HOA

NEXT STEPS

Download the Full Guide (PDF)

  • Confirm no unresolved safety or structural issues remain open.

  • Compare current contributions with reserve study recommendations.

  • Outline major projects, funding sources, and timelines.

  • Work with association counsel and document the resolution strategy.

  • Keep budgets, reserve studies, insurance, and inspection reports lender-ready.

PRESENTED BY

Joe Burke, Origin Point

Have questions about keeping your building aligned with current lending standards? Joe works directly with HOA boards and management companies to make sales and refinances go smoothly for owners.

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Call Joe 
Joe Burke NMLS #251383, OriginPoint NMLS #2185899. For licensing information, visit nmlsconsumeraccess.org. Equal Housing Lender.