The FHFA says Fannie Mae and Freddie Mac are removing certain homeowners insurance requirements. They say these rule changes mean lower monthly payments, more first-time buyers able to close on homes, and rural communities keeping access to insurance they were at risk of losing.
Key points from their media release;
- Big Wins for Condo Owners and Buyers
- Condo buildings can now use the cheaper ACV roof coverage.
- The complicated “maximum per-unit deductible” rule has been simplified.
- Result: Many condo buildings that were getting priced out of the mortgage market will now qualify again.
- A Confusing 2024 Rule Is Gone
- The agencies are scrapping an unnecessary “clarification” from 2024 that would have slowed down insurance claims and driven up costs for no good reason.
- Roof Insurance Gets Way More Affordable
- Fannie and Freddie will now accept Actual Cash Value (ACV) coverage on roofs for single-family homes and condos. → ACV pays what your roof is actually worth today.
- The rest of the house still gets full Replacement Cost Value (RCV) protection – meaning it will be rebuilt brand-new if disaster hits.
- This fixes a real problem: full replacement roof coverage has become ridiculously expensive and hard to find in many states.
“These updates mean lower monthly payments, more first-time buyers able to close on homes, and rural communities keeping access to insurance they were at risk of losing. Homeowners still get strong protection – just at prices that actually make sense in 2026. Bottom Line: if you’re buying a home or condo, or already own one with a Fannie or Freddie mortgage, your insurance bill just got easier to swallow.”
Click here to read the full release at the FHFA.
