Fannie Mae Raises Condo Reserve Minimum to 15% in January 2027

Fannie Mae's lender letter of March 18, 2026 raises the minimum condominium reserve allocation from 10% to 15% of annual budgeted assessment income for Full Review loan applications dated on or after January 4, 2027.

Key points

• The date that matters is the loan application date, not the association's fiscal year.
• Applications dated before January 4, 2027 still use the 10% test.
• Associations that do not meet the threshold may make some units harder to finance with conventional loans.

Why Florida condo owners should pay attention

Florida associations are already adjusting budgets after the state's structural-inspection and reserve laws. A higher Fannie Mae minimum may mean higher HOA dues in some buildings, and buyers may need cash or portfolio loans where a building does not qualify.

What to do

• Buyers: ask for the current budget and reserve allocation before making an offer.
• Sellers: check whether your building will meet the 15% test so buyers can finance.
• Investors: include possible dues increases in your cash-flow projections.

Need help checking a building? Request a building check or call (786) 656-0732.

Sources: Ballast Planning (reviewed Nov 3, 2026), O&L Law (Sep 24, 2026), Habitat Magazine (Sep 2026). Not legal or lending advice. Image is illustrative.