23d • General discussion
Massachusetts Trustees: A Major Condo Financing Change Is Coming
Most boards are focused on budgets, insurance renewals, and maintenance projects. Few are paying attention to a change that could affect every owner's ability to sell their unit.
Fannie Mae and Freddie Mac recently announced updates to condominium lending requirements, including:
📅 July 1, 2026
Master policy per-unit deductibles will generally be capped at $50,000. If your association's deductible exceeds that amount, it could create financing issues for future buyers.
📅 August 3, 2026
The "baseline" reserve funding option is being phased out for condo warrantability reviews.
📅 January 4, 2027
Reserve funding expectations increase from 10% to 15% of annual assessment income.
Why does this matter?
Because these aren't just lender rules—they affect whether buyers can obtain conventional financing. If a condominium becomes non-warrantable, financing options shrink, buyer demand drops, and property values can suffer.
Trustee Action Items:
◦ Pull your master insurance declarations page
◦ Confirm your per-unit deductible amount
◦ Review your reserve funding strategy
◦ Discuss warrantability with your insurance agent and property manager
Does your board know your current per-unit deductible? If not, who's responsible for pulling the declarations page this week?
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Massachusetts Trustees: A Major Condo Financing Change Is Coming
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