Condo Financing in South Florida (2026)

Borrower approval is not building approval

A condo loan involves your finances and the condominium project. I need to understand the association’s financial condition, physical condition, insurance and legal structure. An attractive unit, a recent appraisal or another buyer’s completed loan does not establish that your transaction meets today’s requirements. I start the project discussion while you are still evaluating the listing.

What changed in August 2026

Fannie Mae’s Lender Letter LL-2026-03, dated March 18, 2026, retired Limited Review. Lenders had to apply that retirement to loan applications dated on or after August 3, 2026. Established projects previously eligible for Limited Review now require Full Review or, when eligible, Waiver of Project Review. The change also retired the remaining Florida-specific geographic restrictions associated with Limited Review.

Freddie Mac’s Bulletin 2026-C similarly retired Streamlined Review for applications received on or after August 3, 2026. Its available review paths and terminology are not identical to Fannie Mae’s. I confirm which agency and lender requirements apply rather than treating an old “limited” or “streamlined” approval as current authorization.

Fannie Mae also retired the requirement to submit new or newly converted Florida attached-unit condo projects to its Project Eligibility Review Service, or PERS. Lender-delegated Full Review may be used. This removed a required review channel; it did not remove underwriting of new projects.

Small projects and project-review waivers

Fannie Mae expanded Waiver of Project Review eligibility to new and established projects with 2–10 units. Projects with 5–10 units cannot be part of a master association or larger development for this option. Freddie Mac expanded its corresponding Exempt From Review category, with its own requirements.

I do not describe a waiver as an exemption from every rule. Applicable insurance and eligibility requirements remain, and the borrower still needs underwriting approval. The project’s legal structure, agency status and loan circumstances determine whether this route is available.

Reserve studies and the January 2027 change

For Fannie Mae applications dated on or after August 3, 2026, a reserve study used instead of the budget reserve test must support the study’s highest recommended funding, not baseline funding. The association’s budget must include that recommended allocation. I need the study and adopted budget together; the existence of a study alone does not settle the question.

For Full Review applications dated on or after January 4, 2027, Fannie Mae’s minimum replacement reserve allocation increases from 10% to 15% of annual budgeted assessment income. These are association budget requirements, not borrower down-payment requirements. Freddie Mac announced corresponding reserve changes with the same application-date milestones. I check current agency guidance and lender requirements for the specific file.

Florida milestone inspections

Under Florida Statutes section 553.899, covered residential condo and cooperative buildings with three or more habitable stories generally need a milestone structural inspection when they reach 30 years, or 25 years if the local enforcement agency requires the earlier inspection because of local circumstances. Inspections recur every 10 years. Statutory exceptions and building-specific deadlines require confirmation with the local authority.

I ask for the completed report, not just confirmation that an inspection was ordered. If further investigation or repairs are required, the lender may need the follow-up reports, scope of work and evidence of completion. An inspection report is not a promise of mortgage eligibility or a substitute for your own professional advice.

SIRS: the study behind structural reserves

Florida’s Structural Integrity Reserve Study, or SIRS, requirements apply to covered condo and cooperative buildings with at least three habitable stories, with studies generally repeated every 10 years. Existing, unit-owner-controlled associations subject to the initial requirement had a December 31, 2025 deadline. Qualifying associations with a milestone inspection due on or before December 31, 2026 may coordinate the SIRS with that inspection, but must complete it no later than December 31, 2026. This is not a blanket extension.

The SIRS covers the roof, structure, fireproofing and fire protection, plumbing, electrical systems, waterproofing and exterior painting, windows and exterior doors, and other qualifying items above the state’s applicable threshold. I review whether the adopted funding plan addresses the findings. Florida’s legal obligations and the lender’s reserve review are related but separate requirements.

Why an association issue can affect financing

Special assessments can affect qualifying and reveal unresolved work. Underfunded reserves, critical repairs, evacuation orders, material litigation or insurance deficiencies can restrict financing or require additional documentation. I ask what an assessment pays for, whether work is complete and what obligations remain for the buyer.

Investor ownership and commercial use also need context. Fannie Mae retired its established-project investor-concentration limit in LL-2026-03; I do not treat every investor-heavy building as automatically ineligible. New projects, other programs and individual lenders may apply different ownership, presale or commercial-use requirements.

Warrantable, non-warrantable, FHA and VA

“Warrantable” generally means a project meets the applicable conventional agency requirements for the transaction. “Non-warrantable” means it does not meet those requirements for that path; it is not a universal finding about every possible loan. Portfolio or non-QM options may be available, subject to lender and property eligibility. They do not make serious structural or insurance concerns disappear.

FHA has an approved-condominium list and, for eligible cases, a single-unit approval process in projects without current FHA project approval. VA maintains a separate condo approval list. I check the applicable list, project status and transaction requirements; approval under one program does not establish approval under another.

Send the documents before you write the offer

Ask the association for its questionnaire, adopted budget, reserve study or SIRS, milestone reports, insurance information and assessment notices. Share the listing and intended occupancy with me early. I explain which documents the lender still needs without promising an approval date. Programs and guidelines are subject to change and borrower and property qualification.