Your Chicago condo could be worth less after January 4th.

It has nothing to do with the market. Fannie Mae and Freddie Mac are changing the rules for condo buildings, and if your board isn’t ready, a lot of your buyers won’t be able to get a loan.

Here’s the free checklist to bring to your next board meeting. No sign-up, no email required.

Download the free checklist (PDF)

Two pages. Print it, bring it to your board meeting, and send the link to your neighbors.

What’s changing

August 3, 2026: Lenders can no longer use the quick “Limited Review” for condo buildings with more than 10 units. Almost every conventional loan now comes with a full review of the association’s budget, reserves, delinquencies, and insurance. This one already happened.
January 4, 2027: Associations have to put at least 15% of the annual budget into replacement reserves, up from 10%. The other option is a reserve study done or updated in the last 3 years, with the board funding at the highest recommended level. Baseline funding doesn’t count.

If your building doesn’t pass, buyers can’t use a regular Fannie Mae or Freddie Mac loan there. That’s most buyers. Fewer buyers means a harder sale and a lower price.

Some good news: buildings with 10 units or fewer may qualify for a waiver from the review (it used to be 4), and the old 50% cap on investor-owned units is gone.

Questions to ask your board

What percent of our annual budget goes to reserves? Is it 15% or more?Under 15%, without a current reserve study, the building can fail the review after January 4.
Do we have a reserve study done or updated in the last 3 years?It’s the other way to qualify if reserves are under 15%.
Are we funding at the highest recommended level in that study?Baseline funding no longer qualifies.
If we’re short, what’s the plan before January 4? Higher assessments? A special assessment?Better to know now than when a buyer’s loan gets denied.
How many units are 60 or more days behind on assessments?A high delinquency rate can fail the review on its own.
Are there any critical repairs, safety issues, or deferred maintenance we haven’t funded?Unfunded critical repairs can make the building ineligible.
Is the association involved in any lawsuits?Lenders ask about this in the review.
Is our master insurance policy current, and does it meet lender requirements?Insurance is part of every full review.
Has our management company filled out a lender condo questionnaire recently? Any problems?Lenders use it to decide if the building passes.
If we have 10 units or fewer, do we qualify for the review waiver?Many Chicago buildings are this size, and the waiver makes things simpler.

Documents to ask for

Current annual budget, most recent reserve study, latest financial statements, delinquency report, master insurance declarations page, and recent board meeting minutes.

Download the free checklist (PDF)

Read the official rules

Fannie Mae Lender Letter LL-2026-03:
Read it on fanniemae.com

Freddie Mac Bulletin 2026-C:
Read it on freddiemac.com

This is general information, not legal or lending advice. These rules apply to conventional loans. FHA and VA loans have their own approval process. Requirements can change and each lender makes its own decisions, so confirm details with your lender, management company, or attorney.

Want to know if your building is ready?

Send me your info below and I’ll look at your building’s budget and reserve numbers and tell you where you stand. Free, no obligation. If you’re thinking about selling in 2027, now is the time to find out.