Condo Dream Deferred: Low HOA Reserves and New Fannie Mae Rules
The dream of condo ownership can quickly turn into a financial nightmare when hidden details emerge. One prospective buyer recently faced this reality, discovering her desired condominium association held only 1% in cash reserves. This scenario underscores a growing concern in the real estate market, amplified by recent changes from Fannie Mae designed to protect lenders and homeowners from financially unstable HOAs. Understanding these new rules and the importance of robust reserves is critical for anyone considering a condo purchase.
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