What Florida Buyers and Sellers Need to Know

If you've thought about buying or selling a condominium in Northern Palm Beach County this year, the conversation with your lender just got more complicated, and it likely has nothing to do with your credit score.

Beginning August 3, 2026, Fannie Mae and Freddie Mac retired the streamlined review process that let many buyers, especially those with larger down payments, close on a condo loan without much scrutiny of the condominium association itself. Now most transactions require a Full Project Review, meaning the lender examines not just the borrower but the financial and physical health of the building.

For anyone with a condo purchase or sale on the horizon, understanding what this means is quickly becoming as important as choosing the right floor plan.

How We Got Here

This shift traces back to June 2021, when the collapse of Champlain Towers South in Surfside claimed 98 lives and forced a nationwide reckoning with aging buildings, deferred maintenance and underfunded reserves. Florida responded with new milestone inspection and Structural Integrity Reserve Study requirements, and associations across the state have spent the past few years catching up, often through higher reserve contributions and special assessments.

Fannie Mae and Freddie Mac announced this latest round of updates in March 2026, giving lenders several months to prepare before the rules took effect August 3.

What a Full Project Review Looks Like

Where a Limited or Streamlined Review once let many buyers skip past the association's paperwork, a Full Project Review asks lenders to dig into:

Annual operating budgets
Reserve funding and reserve studies
Insurance coverage
Special assessments and delinquent accounts
Pending litigation
Deferred maintenance and structural inspection reports

Not every project is affected equally. Buildings with 10 or fewer residences still qualify for a waiver of full review, and loan applications dated before August 3 can still move forward under the prior rules. But for most established communities, the streamlined path is gone.

There is a second change on the horizon worth tracking separately: starting in January 2027, reserve studies will need to follow a higher funding minimum. That is a distinct deadline from the review process change, so a well-prepared association still has time to plan.

Why Florida Communities Should Pay Close Attention

Florida holds one of the nation's largest condominium markets, and many of our most sought-after coastal buildings were constructed decades ago. Associations here are managing several requirements at once: Structural Integrity Reserve Studies, milestone inspections, rising insurance premiums and higher reserve contributions.

Communities that have stayed ahead of these obligations are likely to see little disruption. Others may face longer underwriting timelines or a smaller pool of buyers who qualify for conventional financing, particularly across Jupiter, Tequesta, Juno Beach, Palm Beach Gardens, North Palm Beach, Singer Island and Palm Beach.

What This Means If You're Buying

A residence's location and finishes still matter, but so does the health of the association behind it. Before writing an offer, it is worth asking whether reserves are adequately funded, whether special assessments are pending, whether required inspections are complete and whether the association responds promptly to lender questionnaires. A well-managed association with strong reserves and transparent reporting can make financing far smoother.

What This Means If You're Selling

Preparation now can prevent delays later. Gather budgets, insurance certificates and financial statements ahead of listing, confirm whether any assessments or capital projects are pending, and build some flexibility into your financing and closing timeline. The easier it is for a lender to evaluate the association, the easier it is to keep your closing on schedule.

The Bigger Picture

These changes are not meant to discourage condo ownership. They are meant to bring more transparency to a market that, in places, has been carrying deferred costs for years. For buyers, understanding the association is now just as important as understanding the home itself. For sellers, complete documentation can be the difference between a smooth closing and a stalled one.

If you are considering a condo purchase or sale in Jupiter, Tequesta, Juno Beach, Palm Beach Gardens, North Palm Beach or Palm Beach, I would be glad to help you think through how these lending changes affect your next move.