News Articles

Recent changes to Fannie Mae and Freddie Mac lending guidelines affect how condominium properties approach reserve funding and financing eligibility. For homeowners, these changes can have a direct impact on the financial health of their building/home, future assessments, property value, and the ability of buyers to secure financing in order to sell your property.

 

Linked below for your review, a recent Alexandria Living Magazine article also highlights this important trend: lenders are increasingly underwriting the entire condominium building—not just the individual buyer and unit.

That means a condominium building’s reserves, insurance, maintenance, special assessments, and overall financial health can affect whether a buyer is able to obtain financing. Fannie Mae and Freddie Mac have both updated their condominium project requirements to place greater emphasis on these issues.

 

For our community, this reinforces the importance of strong reserves, responsible maintenance, adequate insurance, and proactive financial planning.

Virginia law also requires condominium associations to conduct a reserve study at least every five years and review the results annually to determine whether reserves are sufficient.

For more information:
• Alexandria Living Magazine — The Condo Building Is Being Underwritten, Too
• Fannie Mae — 2026 Project Standards Updates
• Freddie Mac — Condominium Project Risk Requirements
• Virginia Code §55.1-1965 — Reserve Studies & Reserves

 

Additional reading on the growing Freddie/Fannie Condo Blacklist: 

https://www.housingwire.com/articles/a-growing-fannie-mae-blacklist-is-paralyzing-home-sales/ 

Attached summary one pager of our 2023 Reserve Study. 

Sincerely,
The Fairlington Towne Board of Directors