Lending Guidelines
Fannie Mae & Freddie Mac Guidelines
Understand how lender eligibility standards can affect Florida condo associations, unit sales, refinancing, and insurance planning. Use this page as a practical overview for board members reviewing risk, maintenance, reserves, and marketability.
Key Areas
What Boards Should Review
Fannie Mae and Freddie Mac do not insure associations directly, but their project eligibility standards can influence financing availability for buyers and owners. Boards should understand how insurance, deferred maintenance, reserves, and special assessments may affect lender review.
Insurance Adequacy
Review master property, flood, general liability, ordinance or law, fidelity or employee theft, and other core coverages to confirm the association maintains a sound insurance program.
Reserve Strength
Lenders and buyers often look closely at reserve funding, structural repair planning, and whether the association appears financially prepared for major capital needs.
Maintenance & Repairs
Visible deferred maintenance, unresolved structural issues, or major remediation projects can raise concerns during underwriting and project review.
Special Assessments
Large or recurring special assessments may signal financial strain and can prompt additional scrutiny from lenders, buyers, and unit owners.
Board Focus
Three Practical Priorities
Frequently Asked Questions
General guidance for Florida condo and HOA boards evaluating lender-facing risk issues.
Do Fannie Mae and Freddie Mac set insurance rules for every association?
They establish project eligibility standards tied to mortgage financing, not direct insurance regulation. Even so, insurance quality can influence how a project is viewed during lender review.
Can deferred maintenance affect financing availability?
Yes. Significant deferred maintenance, structural concerns, or unresolved repair issues may create underwriting concerns for lenders and secondary market participants.
Why do reserves matter?
Strong reserves can demonstrate financial preparedness. Weak funding or unclear repair planning may raise questions about the association’s long-term stability.
Do special assessments create concern?
They can. A special assessment is not automatically disqualifying, but large or repeated assessments may prompt closer review of the association’s finances and capital planning.
Should boards review their master policy after major repairs?
Yes. Material changes to property condition, replacement costs, deductibles, or risk exposures should trigger a policy review to confirm the program still fits the association.
Can this page replace legal or lending advice?
No. This page is educational only. Boards should consult qualified legal, lending, engineering, reserve, and insurance professionals for project-specific guidance.