By Justin Pierce (JP) | Branch Manager / Certified Mortgage Advisor
Gold Star Mortgage Financial Group | October 20, 2026A bright condo, a manageable price, and fewer weekend chores can be an appealing combination when you run a business. Before you picture morning coffee on the balcony, though, look beyond the monthly association fee. The community’s finances matter, too.
Quick answer: A low homeowners association (HOA) fee does not prove a condo is affordable or eligible for your mortgage. Review what the fee covers, the money set aside for major repairs, and any additional assessments. Your lender also needs to evaluate the property under the selected loan program. [1]
What changes in January 2027
Fannie Mae announced on March 18, 2026, that its minimum replacement-reserve allocation will rise from 10% to 15% of annual budgeted assessment income for condo loans using its Full Review process. The change applies to applications dated January 4, 2027, onward, not based on the closing date. [2, 6]
These are association reserves: funds for major shared-property repairs and replacements. They are different from cash a lender may require an individual borrower to have after closing.
The 15% figure is not a required down payment, and it does not mean every owner’s dues must increase by 15%. It concerns the association’s budget allocation. The effect on a particular community depends on its finances. [2]
There is also an alternative based on an acceptable reserve study, a professional assessment of future repair needs and funding. That route has specific conditions; it is not an automatic exception for a community with too little money set aside. Ask the lender which review applies. [2, 3]
Compare the full cost of living there
The Consumer Financial Protection Bureau explains that HOA dues are usually paid separately from the mortgage payment. Include them in your budget even if an online mortgage calculator leaves them out. [4]
Ask what those dues actually buy. Maintenance, amenities, utilities, and insurance coverage differ among communities. Review the association’s master insurance policy with an insurance professional to understand what coverage you need for your own unit. [1]
A special assessment deserves a closer look
A special assessment is an additional charge to owners, often for a significant project or expense. Ask about current and planned assessments, including the amount, payment schedule, and work being funded. [5]
The reason for the charge matters to financing. Under Fannie Mae’s rules, a special assessment tied to an unresolved critical repair can make the project ineligible. Paying your unit’s assessment does not, by itself, establish that the underlying repair is complete. Have the lender review the issue before assuming it is resolved. [5]
Request the documents before getting attached
For a condo on your shortlist, ask your agent and lender to help obtain and review these items:
The current association budget, available proposed budget, reserve balance, and latest reserve study. Ask how upcoming repair needs will be funded. [1, 3]
Recent board meeting minutes and notices about assessments or major repairs. Ask what remains unfinished. [5]
Master insurance information and a clear explanation of what regular dues include. [1]
Confirmation from the lender of the project review needed for your specific loan and any outstanding concerns. [3]
For buyers comparing condos in Las Vegas, Phoenix, or San Diego, these national financing standards make the individual association’s documents more useful than assumptions about an entire city. Confirm local requirements and document-review deadlines with your real estate professional. [1, 2]
Keep room for your business and your life
My recommendation for self-employed buyers is to evaluate the condo payment against a slower business month, not only your strongest month. Keep tax obligations, business operating cash, and personal emergency savings in the conversation.
A well-funded association may charge more today while planning responsibly for future work. The goal is to understand the home’s ongoing costs before committing, rather than choose solely by the lowest advertised dues.
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Which condo feature would matter most to you: a private balcony, covered parking, or less exterior maintenance? Share your pick in the comments, no financial details needed.
Sources for the article[1] Fannie Mae — What to Know When Buying a Condo Undated consumer guide; accessed October 20, 2026.[2] Fannie Mae — Lender Letter LL-2026-03 Issued March 18, 2026; reserve allocation change on page 3 effective for Full Review applications dated January 4, 2027 onward.[3] Fannie Mae — Full Review Process, B4-2.2-01 Dated August 5, 2026; includes reserve-study alternative and project review requirements.[4] CFPB — Are HOA dues included in my mortgage payment? Reviewed September 11, 2024; modified September 13, 2024.[5] Fannie Mae — Ineligible Projects, B4-2.1-03 Dated August 5, 2026; critical repairs and special assessments.[6] Fannie Mae — Selling Guide Announcement SEL-2026-07 Issued August 5, 2026; confirms January 4, 2027 timing for the new reserve standard.