The dates that matter
| Date | Change | Who |
|---|---|---|
| March 18, 2026 | Lender Letter LL-2026-03 announces new project standards and insurance rules; master policies may insure roofs on something other than a replacement cost basis | Fannie Mae |
| August 3, 2026 | Limited Review retired for loan applications dated on or after this date; baseline funding in a reserve study no longer accepted | Fannie Mae |
| August 3, 2026 | Streamlined Review available only for applications received before this date; baseline funding no longer accepted for reserve study exceptions | Freddie Mac |
| January 4, 2027 | Minimum budgeted reserve allocation rises from 10% to 15% of annual assessment income under Full Review | Fannie Mae |
Why the Limited Review change reaches so many Georgia condos
Until August 2026 many established condominiums never had their finances examined in detail, because a buyer with a large enough down payment qualified for Fannie Mae's Limited Review. With that route gone, most condo loans delivered to Fannie Mae now go through a Full Review (or, for projects of 2 to 10 attached units, a Waiver of Project Review in some cases). A Full Review looks at the association's budget, its reserve line, its insurance and any known repair needs.
The budget test, and the study alternative
The test is simple arithmetic. Divide the budgeted reserve allocation by budgeted assessment income. Today the answer must be at least 10%; for applications dated on or after January 4, 2027, Fannie Mae requires 15%. Special assessments cannot stand in for the allocation.
A reserve study is the way out for an association that falls short. Both agencies allow a study in place of the percentage, and both now insist that the budget carry the study's highest recommended contribution. Freddie Mac's FAQ points to its Guide Sections 5701.5 and 5701.6 for the study requirements. Baseline funding, which only keeps the balance above zero, no longer counts; a threshold or full funding plan does.
A 120-unit Georgia condo with $1.2 million in annual assessments needs $120,000 in the reserve line today and $180,000 for loans applied for from January 4, 2027, unless a qualifying study supports a different figure.
Inspections and repairs
Fannie Mae's FAQ says the lender must obtain and review any inspection completed within the past three years, including structural or mechanical reports, though it does not require one to be done. Projects needing critical repairs, such as roof failure, unsafe balconies, or foundation or parking structure problems, are ineligible until the work is finished. The policy also looks at unfunded repairs costing more than $10,000 per unit that should be undertaken within twelve months.
A reserve study is not a structural inspection, but its component schedule is where a lender sees what is coming due and whether money is set aside for it.
What a board can do before January
- Work out your reserve percentage from the current budget.
- If you are under 15%, decide between raising the line in the 2027 budget and commissioning a study that supports your figure.
- If you have a study, check its funding method and that the budget uses its highest recommendation.
- Keep any inspection reports from the last three years ready for questionnaires.