New Mortgage Guidelines
Boston Condos for Sale and Apartments for Rent
New Mortgage Guidelines
There are important changes you should know about if you’re planning to purchase a Boston condo for sale using a conforming loan. Fannie Mae and Freddie Mac introduced new condo guidelines in mid-March that will make financing more challenging, particularly in larger buildings.
A bit of background: These agencies help keep money flowing in the housing market by purchasing loans from lenders. Their new guidelines are designed to reduce lender risk.
www.bostonreb.com 2026 Conforming Loan Limits for Greater Boston
- Suffolk County (Boston): $1,249,125
- Middlesex, Norfolk, Essex, & Plymouth Counties: $962,550
- Standard Massachusetts Baseline: $832,750www.bostonreb.com +4
Key Requirements for Condo Conforming Loans
- Borrower Qualifications:
- Credit Score: Typically, a minimum of 620 is required.
- Down Payment: Minimums can be as low as 3% to 5% for primary residences.
- Debt-to-Income (DTI): Generally capped around 45% to 50%.
- Condo Project Approval:
- The condo building must be “warrantable,” meaning it meets Fannie Mae or Freddie Mac guidelines regarding owner-occupancy rates, insurance coverage, and financial reserves.
- Projects with excessive litigation or a high percentage of units owned by a single entity may be “non-warrantable,” requiring specialized portfolio or jumbo financing.
Boston-Specific Assistance Programs
- ONE+Boston: A partnership between the City of Boston and the Massachusetts Housing Partnership (MHP) that provides discounted interest rates and enhanced down payment assistance for first-time buyers.
- Co-Purchasing Housing Pilot: Offers zero-percent interest deferred loans of up to $50,000 for down payments on multifamily properties in Boston.
- MassHousing Loans: Provides options with lower Mortgage Insurance requirements for qualified residents.
Here’s what’s changing, according to the National Association of Realtors:
Smaller condo projects (10 units or fewer) may now qualify for a waiver of project review. This is especially helpful in markets like San Francisco, where smaller HOAs are common.
The Limited Review process is being eliminated. More properties will now require a Full Review, meaning additional documentation and scrutiny.
There will be higher reserve requirements. condo resevere will need to allocate 15% of their annual budget toward reserves (up from 10%) for projects undergoing Full Review, starting in 2027. However, one- to four-unit condo buildings should still be eligible for a project review waiver—though the lender may ask for a letter from the HOA stating that there are no unaddressed significant repairs outstanding.
What this means for buyers and sellers:
• Smaller buildings may benefit from a more streamlined financing process
• Larger buildings will face stricter documentation and reserve requirements, which could lead to higher HOA dues or special assessments
• Lenders will place greater emphasis on HOA financials, including budgets, reserve studies and insurance
• Expect longer loan approval and closing timelines for larger condo projects.
A good rule of thumb: Have your lender review key condo documents before submitting an offer.
Peace be with you
Ford Realty Beacon Hill – Condo for Sale Office
Boston condos for sale – Ford Realty Inc
Updated: Boston Condos for Sale Blog 2025
Byline – John Ford Boston Beacon Hill Condo Broker 137 Charles St. Boston, MA 02114
Ford Realty – Google Business
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Beginning Jan. 1, 2010 Freddie Mac and Fannie Mae will be required to obtain loan-level identifiers for the loan originator, loan origination company, field appraiser and supervisory appraiser. The purpose of the requirement is to prevent fraud and predatory lending, to ensure mortgages owned and guaranteed by those Enterprises are originated by individuals who have complied with applicable licensing and education requirements. In addition, they will use the data collected to identify, measure, monitor and control risks associated with originators and appraisers performance, negligence and fraud.
Here is the PDF from the Federal Housing Finance Agency, Fannie and Freddies new regulator.
This represents a major industry change. Requiring identifiers allows the Enterprises to identify loan originators and appraisers at the loan-level, and to monitor performance and trends of their loans, said Lockhart. If originators or appraisers have contributed to the incidences of mortgage fraud, these identifiers allow the Enterprises to get to the root of the problem and address the issues.
The purpose of FHFAs requirement is to prevent fraud and predatory lending, to ensure mortgages owned and guaranteed by the Enterprises are originated by individuals who have complied with applicable licensing and education requirements under the S.A.F.E. Mortgage Licensing Act, and to restore confidence and transparency in the credit markets. In addition, the Enterprises will use the data collected to identify, measure, monitor and control risks associated with originators and appraisers performance, negligence and fraud.
