When does Fannie Mae's 15 percent reserve requirement start?
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Fannie Mae's Full Review minimum remains 10% for loan applications dated before January 4, 2027. For Full Review applications dated on or after January 4, 2027, LL-2026-03 raises the minimum reserve allocation to 15% of annual budgeted assessment income.
Which date controls?
The lender-letter effective date is tied to the loan application date, not the association's fiscal-year start or the date the budget was adopted. The current Selling Guide still displays the 10% test; the lender letter is the primary instrument announcing the future step-up.
How is the percentage calculated?
The numerator is annual budgeted replacement-reserve allocation. The denominator is annual budgeted assessment income, subject to four permitted exclusions stated in the Guide: qualifying incidental income, owner-paid utility collections, income allocated to reserve accounts, and special-assessment income.
An acceptable reserve study may be used instead of the percentage calculation only when all substitution conditions are met. That is a lender review, not a promise that having a study makes the project eligible.
Sources
- Fannie Mae Lender Letter LL-2026-03, issued March 18, 2026 — 15% requirement effective January 4, 2027.
- Fannie Mae Selling Guide B4-2.2-01, Full Review Process, version August 5, 2026 — current 10% calculation and exclusions.
Primary sources accessed September 11, 2026.