In July, Fannie Mae and Freddie Mac introduced updates to project eligibility standards for condominiums and housing cooperatives in the United States.
As of 2023, Fannie Mae and Freddie Mac support roughly 70% of the mortgage market, making their standards crucial for condominiums and housing cooperatives. The new requirements, set to take effect on September 18, have significant implications for these community associations.
The changes will necessitate thorough documentation, including insurance policies, budgets, financial reports, reserve studies, and more. Failure to provide this information as requested by lenders could render a project ineligible, potentially causing financial difficulties for the association.
Find the key highlights of the updated standards here.