Mortgage Navigator • Conventional • Condos

Condo project insurance

The borrower's HO-6 policy does not replace the HOA's master-policy requirements.

Master project coverage

The condo association must maintain the project-level property and other required insurance under the agency rules. Coverage, deductible and named-insured requirements can affect loan eligibility.

Fannie general liability

Fannie's current rules require general liability insurance for condo and co-op projects unless the transaction qualifies for the applicable waiver of project review.

Fidelity / crime coverage

Fannie also imposes fidelity/crime insurance requirements based on project characteristics and HOA financial controls. The August 5, 2026 update includes current coverage and control standards.

Common problem: an HOA can be financially healthy yet still create a financing issue if the master policy has inadequate coverage or an unacceptable deductible.

Official guide baseline

Fannie Mae Selling Guide · Freddie Mac Seller/Servicer Guide

Condo eligibility is both loan-level and project-level. A strong borrower does not cure an ineligible project.