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Fannie Mae and Freddie Mac are government-sponsored enterprises that buy mortgages from lenders and package them into mortgage-backed securities to ensure a stable supply of mortgage funds in the U.S. housing market.

 

Fannie Mae & Freddie Mac have made changes to conventional financing guidelines for condominium communities. ‍These new changes affect how these communities qualify for conventional mortgage financing. (FHA loans are not directly affected by these changes and have their own guidelines).

 

Effective January 4, 2027, the minimum reserve funding requirement will increase from 10% to 15% of the annual operating budget. Lenders will fully examine your association's financial condition including:

 

Funding levels of your reserves
Coverage under master insurance policies
Delinquent accounts
Pending litigation
 

There will be longer closing timelines and more scrutiny on every loan application. Condominium associations below 15% risk losing warrantable status. As such, loss of warrantable status directly impacts resale value for individual unit owners, decreases the number of potential buyers, and may result in buyers being unable to close on their units, and could possibly affect property values.

 

Fond Farewell For Flags
Residents can drop off worn, torn, or faded American flags for proper retirement. The City of New Albany can help ensure it receives a dignified farewell. Our flag retirement drop box is now located on Village Hall Road near the back entrance to Village Hall (99 E. Main Street).