{"id":228,"date":"2025-01-16T05:40:10","date_gmt":"2025-01-16T05:40:10","guid":{"rendered":"https:\/\/nysck.com\/NonWarrantableCondos.com\/?p=228"},"modified":"2025-07-31T14:33:10","modified_gmt":"2025-07-31T14:33:10","slug":"fannie-mae-vs-freddie-mac-key-differences-in-condo-fidelity-insurance-requirements","status":"publish","type":"post","link":"https:\/\/nysck.com\/NonWarrantableCondos.com\/fannie-mae-vs-freddie-mac-key-differences-in-condo-fidelity-insurance-requirements\/","title":{"rendered":"Fannie Mae vs. Freddie Mac: Key Differences in Condo Fidelity Insurance Requirements"},"content":{"rendered":"<p>When securing financing for a condo, understanding lender requirements is crucial, especially when it comes to fidelity (crime) insurance. Fannie Mae and Freddie Mac have slightly different rules, and knowing these differences can help streamline your loan approval process.<\/p>\n<p>Fannie Mae\u2019s Fidelity Insurance Rules<\/p>\n<p>&#8211; Required for condos with 20+ units \u2013 Developments with fewer than 20 units are exempt. <\/p>\n<p>&#8211; No exceptions for reduced coverage \u2013 Fannie Mae will not accept lower coverage limits under any circumstances. <\/p>\n<p>Freddie Mac\u2019s Fidelity Insurance Rules<\/p>\n<p>&#8211; Required for ALL condo developments \u2013 Unlike Fannie, Freddie mandates fidelity insurance regardless of the number of units.<\/p>\n<p>&#8211; Reduced coverage may be allowed \u2013 If the HOA meets at least one of the following conditions:<\/p>\n<ul>\n<li> Separate accounts \u2013 Operating budget and reserve funds are kept in distinct accounts. <\/li>\n<li> Direct bank reporting \u2013 Monthly statements are sent directly to the HOA (not just management). <\/li>\n<li> Dual authorization \u2013 At least two board members must approve any fund withdrawals. <\/li>\n<\/ul>\n<p>Why This is Important for Buyers &#038; Lenders<\/p>\n<ul>\n<li> Fannie Mae loans may be simpler for smaller condos (under 20 units) since fidelity insurance isn\u2019t required. <\/li>\n<li> Freddie Mac loans could offer flexibility for HOAs that meet their reduced coverage criteria. <\/li>\n<li> Non-compliance could delay or derail financing, so confirming a condo\u2019s insurance setup early is key. <\/li>\n<\/ul>\n<p><a href=\"https:\/\/nysck.com\/NonWarrantableCondos.com\/\">We<\/a> Can Help Navigating Condo Financing<\/p>\n<p>Whether you&#8217;re a buyer, realtor, or HOA manager, understanding these requirements can prevent last-minute hurdles. <a href=\"https:\/\/nysck.com\/NonWarrantableCondos.com\/contact-us\/\">Contact<\/a> our team for expert guidance on condo project approvals and lender requirements.<\/p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>When securing financing for a condo, understanding lender requirements is crucial, especially when it comes to fidelity (crime) insurance. Fannie Mae and Freddie Mac have slightly different rules, and knowing these differences can help streamline your loan approval process. Fannie Mae\u2019s Fidelity Insurance Rules &#8211; Required for condos with 20+ units \u2013 Developments with fewer [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":544,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[6],"tags":[],"class_list":["post-228","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"_links":{"self":[{"href":"https:\/\/nysck.com\/NonWarrantableCondos.com\/wp-json\/wp\/v2\/posts\/228","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/nysck.com\/NonWarrantableCondos.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nysck.com\/NonWarrantableCondos.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nysck.com\/NonWarrantableCondos.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/nysck.com\/NonWarrantableCondos.com\/wp-json\/wp\/v2\/comments?post=228"}],"version-history":[{"count":4,"href":"https:\/\/nysck.com\/NonWarrantableCondos.com\/wp-json\/wp\/v2\/posts\/228\/revisions"}],"predecessor-version":[{"id":545,"href":"https:\/\/nysck.com\/NonWarrantableCondos.com\/wp-json\/wp\/v2\/posts\/228\/revisions\/545"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/nysck.com\/NonWarrantableCondos.com\/wp-json\/wp\/v2\/media\/544"}],"wp:attachment":[{"href":"https:\/\/nysck.com\/NonWarrantableCondos.com\/wp-json\/wp\/v2\/media?parent=228"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nysck.com\/NonWarrantableCondos.com\/wp-json\/wp\/v2\/categories?post=228"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nysck.com\/NonWarrantableCondos.com\/wp-json\/wp\/v2\/tags?post=228"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}