Miami Condo Mortgage Rules Tighten Ahead of August 2026 Deadline

Effective August 3 2026, Fannie Mae and Freddie Mac will eliminate the “Limited Review” shortcut that previously covered roughly 40 % of condominium project reviews. Every condo project in Miami must now undergo a full financial and structural assessment before lenders can approve a mortgage. The change follows a rise in ineligible buildings – about 700 in Miami‑Dade and 1,438 statewide – and is expected to push more developments into non‑warrantable status.

The new rules also raise the minimum reserve allocation for condo associations from 10 % to 15 % of annual budgeted income starting January 4 2027, and tighten requirements on reserve studies, maintenance logs, and delinquent owner dues. Buyers, sellers and owners face longer closing times, higher chances of loan denial, and price discounts of 15‑30 % for units in buildings that fail the new criteria. Lenders and investors must conduct deeper due‑diligence, potentially reshaping financing flows in the South‑Florida residential market.