CONTACT US

Contact Form

    News Details

    Roof insurance rules easing for government-backed mortgages on homes, condos
    • March 19, 2026

    Fannie Mae and Freddie Mac are loosening roof insurance requirements for condo and single-family home owners while tightening mortgage lender approvals.

    As of August 2026, Fannie and Freddie will begin accepting mortgage applications with properties that carry “at cash value” roof insurance, which typically come with lower premiums. Traditionally, the mortgage giants only accepted full replacement value coverage for roofs.

    “Lower insurance costs and mortgage rates shrink the monthly payment of a new mortgage, giving new homebuyers confidence that they can afford the American dream,” wrote the Federal Housing Finance Agency in a statement.

    The changes come as home insurance premiums are set to rise for a fifth straight year while insurers grapple with losses from extreme weather and high rebuilding costs.

    Also see: State Farm rate hike stands at 17% for California homeowners after settlement with state

    Under the new rules, mortgage lenders also will be required to complete full application reviews to determine loan eligibility.

    At least one California mortgage lender thinks the new rules could have reverse consequences. Rajat Jetley says requiring complete application reviews for a demographic that has often received limited reviews will lead to fewer approvals.

    He added that the option of exempting roof coverage from the overall homeowners’ insurance, where it has traditionally been, could add confusion where many coverage types are already required. Full replacement value insurance is still required for the rest of the home.

    He also said that lowering the level of insurance in a state prone to environmental risks could set buyers up for loss later.

    “Someone’s going to get a rude sticker shock in a couple of months or years when the insurance is actually needed,” Jetley said.

    ​ Orange County Register 

    News