What are the new condo reserve rules? Fannie Mae and Freddie Mac, which back most conventional condo mortgages nationwide, have raised the share of a condominium’s annual budget that generally must go to reserves and tightened how lenders review association finances. The rules apply in every state, not only on the coast. A building that falls short can see its units become harder to finance, and that affects every owner.

Myrtle Beach broker Abe Safa laid out the local impact in an October post on the new Fannie Mae and Freddie Mac condo rules. He notes that the streamlined review many condo loans once received is gone, replaced for most buildings by a full review of association finances. The higher reserve minimum, he adds, reaches nearly every association. As he puts it, “the deadline that counts is the fall 2026 budget season.”

There are two reasonable positions on reserves. Owners on fixed incomes feel every dollar moved into savings, and boards that underfund are usually trying to spare neighbors pain, not hide anything. Owners who need to sell or refinance pay the price when a lender flags the budget, and a special assessment later costs more than steady contributions now.

With over 40 years managing Carolina communities, we have found that the buildings that stay financeable treat the reserve study as a working document rather than a filing. A current reserve study is the cheapest insurance a condo board can buy. Lending guidelines generally accept a study funded at its highest recommended level as an alternative to a flat percentage.

If you are deciding how to choose an HOA management company, ask how it handles lender questionnaires and reserve study tracking, and how the reserve line will be presented to owners before the budget vote. We cover reserve funding in Dollars, Decisions, and Better Stewardship.