Imnoba Team – August 8, 2026
1.What Actually Changed on August 3, 2026
For loan applications dated August 3, 2026 or later, Fannie Mae retired its Limited Review process for condo purchase loans, and Freddie Mac eliminated the matching Streamlined Review option. Both were shortcuts that let a lender skip a full inspection of a building’s finances and physical condition when the buyer had strong equity or a small loan amount. That shortcut is gone. Now almost every condo project with more than 10 units goes through a Full Review -- the lender examines the building itself, not just the borrower -- regardless of down payment size, according to Fannie Mae’s own Lender Letter LL-2026-03.
- Limited Review / Streamlined Review are gone for loan applications dated Aug 3, 2026 or later.
- Full Review now applies automatically to condo projects over 10 units, regardless of the buyer’s equity position.
- Master insurance deductible capped at $50,000 per unit for loans dated July 1, 2026 or later -- if a building’s deductible is higher, the individual buyer needs a personal HO-6 policy covering the gap.
- Reserve funding requirement raised toward 15% of the association’s budget.
- Florida PERS (Project Eligibility Review Service) has been retired, removing a Florida-specific fast-track that many local lenders relied on.
- By one industry estimate reported by local mortgage brokers, roughly 40% of Miami-area condo loan reviews used the now-eliminated Limited Review shortcut -- making South Florida the market most exposed to this change nationwide.
Translate this into a decision: before you sign a contract on any condo over 10 units, ask the HOA or condo association for the exact master policy deductible per unit. If it’s above $50,000, budget for a personal HO-6 policy to cover that gap -- and build in extra weeks for closing, since Full Review means more paperwork on the building’s side, not just yours.
2.Real Buildings This Now Touches
This isn’t abstract -- it applies to specific buildings buyers are actively looking at right now. The Perigon Miami Beach (83 residences, delivered 2025) and The Elser Residences (642 residences, delivered 2023) are both well past the 10-unit threshold, so any conventional purchase loan on a unit there now goes through Full Review by default. One Park Tower by Turnberry (303 residences, delivering through 2026) is in the same position for buyers closing this year. None of this means these buildings are riskier than before -- it means the paperwork and the timeline to close on a unit in any of them just got longer.
3.What Buyers Should Do Differently Now
Three things change in practice. First, ask your agent or the seller for the building’s condo questionnaire and most recent reserve study before you write an offer, not after -- under Full Review, the lender will need it anyway, and finding out late that a building doesn’t qualify can blow up a closing date. Second, if you’re financing (not paying cash), confirm your lender is actually running Full Review and not quoting you a Limited Review timeline that no longer exists. Third, factor in that this change coincides with a piece of good news: FIGA’s 1% emergency insurance assessment ends October 1, 2026, two years earlier than planned, which trims a small amount back off most Florida property insurance bills -- Florida’s insurance guaranty association estimates $20 to $50 a year in savings depending on premium size.
Does this apply if I’m paying cash? No. Full Review and Limited Review are lender underwriting processes -- an all-cash purchase never went through either one, so nothing changes for cash buyers.
What if the building was already Fannie Mae-approved before August 3? A prior approval doesn’t carry over automatically. Under the new guidelines, project approvals are tied to updated documentation standards, so a building’s status can still need to be re-verified for a new loan application, even if it was approved before.
Does this make Miami condos a bad investment? Not by itself. It makes the financing process slower and more document-heavy, which mainly affects your closing timeline and your lender’s paperwork demands -- not the value of the underlying property.
Disclaimer: This article is for informational purposes only and does not constitute investment, legal, tax, or mortgage advice. Requirements referenced above (Full Review thresholds, deductible caps, reserve percentages) come from Fannie Mae’s Lender Letter LL-2026-03 and public reporting as of August 2026 and can be updated or interpreted differently by individual lenders. Confirm current requirements directly with your lender and consult a licensed mortgage, legal, or tax professional before making any purchase decision.
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Sources
- Fannie Mae. (2026). Lender Letter LL-2026-03: Condo Project Standards and Property Insurance Requirements.
- Freddie Mac / FHFA coordination guidance on condo project review changes, 2026.
- National Mortgage Professional. (2026). Condo Review Deadline Puts Lenders On The Clock.
- Florida Insurance Guaranty Association (figafacts.com). (2026). Current FIGA Emergency Assessment Is Concluding.
- Insurance Journal. (2026). FIGA Moves to End 1% Assessment for Insolvent Insurer Claims 2 Years Early.