From 3 August 2026, the way lenders assess Miami condo buildings changes — and a lot of buildings are about to fail a test they were never properly given before. Limited Review, the shortcut that covered roughly 40% of all condominium project reviews, is eliminated for loan applications dated on or after that date. Every project now faces a full assessment.
If you are buying, selling or holding a Miami condo, this is the most consequential thing happening in the market this quarter, and almost nobody is talking about it.
Key Takeaways
- Limited Review is eliminated from 3 August 2026. It covered roughly 40% of condo project reviews and let lenders approve a unit without fully assessing the building.
- Around 700 South Florida buildings — 1,438 statewide — are already ineligible for conventional financing. That count has doubled in two years.
- Units in ineligible buildings typically trade 15% to 30% below comparable units in eligible ones.
- The minimum reserve allocation rises from 10% to 15% on 4 January 2027.
- Expect more buildings to be found ineligible over the next two quarters, not fewer.
What changes on 3 August
Four adjustments to Fannie Mae and Freddie Mac condominium rules land across 2026 and into 2027. Three have already taken effect. The fourth is the one that bites.
| Date | Change |
|---|---|
| 18 March 2026 | Investor concentration limits removed · small-condo waiver expanded · roof actual-cash-value carve-out |
| 1 July 2026 | Master insurance per-unit deductible capped at $50,000 |
| 3 August 2026 | Limited Review eliminated — every project faces full review |
| 4 January 2027 | Minimum reserve allocation rises from 10% to 15% of annual budgeted assessment income |
Limited Review existed so that a lender approving a mortgage in a large, apparently healthy building did not have to audit the entire association. In practice it meant a great many Florida buildings were never examined closely. That ends for any loan application dated 3 August or later.
The list nobody can see
Fannie Mae maintains a roster of condominium projects it will not lend against. It is not published. Buyers usually discover their building is on it when their lender declines the loan, often weeks into a transaction.
Roughly 700 buildings across Miami-Dade, Broward and Palm Beach are currently ineligible, out of 1,438 statewide — approximately double the number two years ago.
The consequence is financial and immediate. Conventional financing disappears, leaving cash buyers, seller financing or specialist lenders. Units in affected buildings typically sell 15% to 30% below comparable units in eligible buildings. On a $900,000 apartment that is a swing of $135,000 to $270,000 — considerably more than any negotiation over the asking price.
What makes a building non-warrantable
- Reserves below 10% of the annual budget — rising to 15% from 4 January 2027.
- Delinquencies of 15% or more of units 60+ days behind on assessments.
- Single-entity ownership above 20% of units, in projects of 21 units or more.
- Commercial space above 35% of the project.
- Deferred maintenance or inadequate insurance — the two most common triggers in South Florida since Surfside.
Read that list again with Florida’s post-Surfside reserve rules in mind. Associations that previously waived reserves were required to begin funding them on 1 January 2026. Buildings that have not caught up are now exposed on two fronts at once.
If you are buying
Verify warrantability before you write an offer, not after. It is the highest-value ten minutes in a Miami condo purchase and it costs nothing — your lender can check.
Then ask the association for the milestone inspection report, the structural integrity reserve study, the last three years of budgets, and any assessment voted or pending. A building that has completed its inspection and funded its reserves has usually already absorbed the pain. One that has done neither still has it ahead.
There is also an opportunity here, and it is a real one. A 15% to 30% discount on a building with a fixable problem — where the reserves are being funded and the work is scheduled — can be the best value in this market. The discount is priced for uncertainty, not for the outcome.
If you are selling
Find out now whether your building is eligible. If it is not, you are selling into a cash-only buyer pool and you need to price and market accordingly rather than discovering it through three failed contracts.
If your building is eligible and well reserved, that is now a genuine selling point and it should be in the listing. From August it is a shrinking club.
If you already own
Attend the budget meeting. Reserve funding decisions taken this year determine whether your building is financeable in 2027, and therefore what your apartment is worth to the next buyer. A board that votes to keep contributions low is not saving you money — it is transferring the cost to your resale price, with interest.
Miami condo financing rules: frequently asked questions
What exactly changes on 3 August 2026?
Limited Review is eliminated for conventional loan applications dated on or after that date. It previously covered roughly 40% of condo project reviews and allowed lenders to approve a unit without a full assessment of the building. From 3 August every project faces full review.
How do I find out if my Miami condo building is on the ineligible list?
The list is not public. A mortgage lender can check it for a specific project. Ask before you make an offer — not after you are under contract.
How many Florida condo buildings are affected?
Approximately 700 across Miami-Dade, Broward and Palm Beach, and 1,438 statewide — roughly double the number of two years ago.
How much less is a non-warrantable condo worth?
Units in ineligible buildings typically trade 15% to 30% below comparable units in eligible buildings, because the buyer pool shrinks to cash and specialist lending.
Can a building get back on the eligible list?
Yes. Eligibility generally follows the underlying problem — reserves, delinquencies, deferred maintenance or insurance. Buildings that fund reserves and complete required repairs can regain eligibility, which is why a discounted unit in a building that is actively fixing itself can be good value.
What is the reserve requirement changing to?
The minimum reserve allocation rises from 10% to 15% of annual budgeted assessment income for loan applications dated on or after 4 January 2027.
Tell me the building and I will tell you where it stands
I have been selling Miami condos since 2002 and this is the sharpest change to the financing landscape I have seen in that time. If you own, are buying, or are simply wondering whether your building is exposed, send me the address.
Get in touch — or read the full picture on Miami condos for sale and pre-construction, where none of this applies because the building is new.
Sources and further reading
- Fannie Mae and Freddie Mac 2026 condo rule changesReserve thresholds, Limited Review elimination and effective dates.
- South Florida condo ineligible-list analysisCounts of ineligible buildings and the price impact on affected units.
- Florida CS/CS/HB 913 (Chapter 2025-175, Laws of Florida)Milestone inspection and structural integrity reserve study requirements.