"It feels like you're having your wisdom teeth pulled out." That is how South Florida mortgage executive Melissa Cohn described arranging condo loans in the weeks after Aug. 3, 2026, when she spoke with The Real Deal. She added that the deals are still closing, and that "the question is the pricing."
Pricing is the word to hold onto. A Miami condo buyer who finances is approved twice. The first approval covers the buyer's income and credit. The second covers the building: its reserves, its budget, its insurance and the repairs it still owes. This fall the second approval got stricter, and it is now quietly sorting Miami condos into two markets. One sells to everyone. The other sells mostly to people who can pay cash.
Half the Buyers Never Face the Building Review
In August 2026, cash paid for 50.5% of Miami-Dade existing condo sales and 24.2% of single-family sales, according to MIAMI REALTORS. The association credits Miami's high cash share partly to foreign buyers and to domestic movers bringing equity from pricier markets. At the top of the market the pattern is stronger still: 82% of Miami condo sales at $1 million and up were all-cash in 2025.
Wealth is part of that story. So is the rulebook. A cash buyer never deals with Fannie Mae's or Freddie Mac's project standards. A financed buyer depends on them, and so does any seller hoping to reach a financed buyer. The government-backed alternative barely exists here. Of the 2,397 condominium buildings in Miami-Dade, Broward and Palm Beach counties, MIAMI REALTORS reports that only 21 are approved for FHA loans, about 0.9%.
The timing data shows the same pattern. In August 2026, a Miami-Dade condo took a median 66 days to go under contract and 108 days to close. A single-family home took 40 days and 80 days. Condos also carried 12.1 months of supply in August, down from 14 a year earlier. The county condo median was $408,000, down 0.5% year over year. That median blends buildings that every lender will finance with buildings few lenders will touch, and the portals cannot show you which is which.
What Aug. 3 Changed, and What Florida Already Had
On March 18, 2026, Fannie Mae issued Lender Letter LL-2026-03. It retired the Limited Review process for loan applications dated on or after Aug. 3, 2026. Lender Letter LL-2026-03 is the primary text. Under Limited Review, a lender could approve a loan without a deep look at the association's finances. Freddie Mac ended its matching Streamlined Review the same day. Nationally, 40% of condo loans used Limited Review last year, The Real Deal reported.
Florida's version of the shortcut was already narrower, and that changes what Aug. 3 means for a Miami buyer. Freddie Mac's Florida rules capped Streamlined Review at 75% loan-to-value for a primary residence and 70% for second homes and investment properties. In most other states, Fannie's Limited Review reached 90% for a primary home.
| Buyer scenario, established condo | Before Aug. 3, 2026 | On or after Aug. 3, 2026 |
|---|---|---|
| Miami primary residence, 20% down | Full Review already required under Florida caps | Full Review |
| Miami primary residence, 25% down | Shortcut review available | Full Review, unless a waiver applies |
| Primary residence in most other states, 10% down | Shortcut review available | Full Review, unless a waiver applies |
| Building of 10 or fewer units | Varies | Expanded waiver eligibility |
So the typical Miami buyer putting 20% down was already getting a full building review. What disappeared for Florida was the shortcut for buyers putting at least 25% down, along with the looser reserve math described below. The Real Deal wrote that Florida is "likely feeling the biggest effects" because the state has more condos than any other and many associations lack professional management. Both readings hold up. The leverage rule moved less in Florida than elsewhere. The reserve rule landed on more buildings here than anywhere else.
The Reserve Math Is the Part That Bites
The same Aug. 3 date brought a second change that has drawn less attention. Lenders sometimes rely on a reserve study to show that an association has enough set aside. When they do, they must now confirm that the budget funds the highest reserve allocation the study recommends. They can no longer accept the "baseline funding" method, which lets the reserve balance fall toward zero without going below it.
That is how a building can look fine on a listing sheet and still fail a loan review. Cohn told The Real Deal that brokers now wait on associations for documents. Once the documents arrive, more buildings are falling short of Fannie or Freddie thresholds, which pushes buyers toward non-QM lenders that typically charge higher rates. U.S. News, reporting nationally on Aug. 10, quoted an estimate that non-QM rates run 25 to 50 basis points higher. The same article noted that inspection and appraisal costs tied to project reviews may now fall on borrowers.
No one has yet published Miami-Dade counts of deals delayed or canceled since Aug. 3. MIAMI REALTORS reported that condo sales rose 1% year over year in August 2026, from 903 to 911. Condos priced between $500,000 and $600,000 rose 32%, from 78 sales to 103. The association expects the new guidelines to make lending more transparent and financially secure. So the market is still clearing. The open question is which buildings it clears in, and at what price.
The Calendar Tightens Again This Winter
Three dates matter for anyone buying or selling a Miami condo over the next few months:
- Dec. 31, 2026. Florida's Department of Business and Professional Regulation says an association completing its structural integrity reserve study together with a milestone inspection due by this date may finish both by then. Unit-owner-controlled associations that existed on or before July 1, 2022 otherwise faced a Dec. 31, 2025 SIRS deadline.
- Jan. 4, 2027. For Full Review loan applications dated on or after this day, Fannie Mae raises the minimum reserve contribution from 10% to 15% of the association's annual budgeted assessment income.
- No state relief this year. Florida's 2026 SB 722 would have narrowed SIRS coverage and let some associations waive or reduce reserves. It died in committee on March 13, 2026. The governing framework is still HB 913, signed June 23, 2025. Among other things, it allows a pause in reserve contributions so associations can put critical milestone repairs first.
The second and third dates can pull against each other. An association using state flexibility to pause reserves for repairs could still come up short of a lender's 15% floor. "A lot of these buildings don't have the financial capacity to increase their reserves to 15 percent," Cohn said. In her view, the rules "will put a premium on the value of the buildings that are compliant."
Reading a Building Before You Write the Offer
Fannie Mae does not publish its project eligibility decisions. It does say it has updated the status of more than 2,000 projects since 2022 after associations showed their problems were fixed. Status can change in either direction, and no public list tells you where a building stands today. Florida Realtors warned in May that buyers should expect more questions about reserves and insurance, and that gaps in association paperwork could delay financing. Before committing, ask for:
- The most recent structural integrity reserve study, along with the reserve line in the current budget it supports
- The last two annual budgets, to see whether reserve contributions are rising toward 15% or flat
- Milestone inspection status, and what any follow-up phase found
- Whether the association has already given a lender's condo questionnaire to another buyer this fall
- Master insurance details, which Fannie lists among the most common reasons a project fails review
For sellers, the same documents set the size of the buyer pool. Two units listed at the same price in similar towers can draw very different crowds if only one building passes a full lender review. Our guide to luxury condo living in Miami covers amenities and building styles. Our Miami neighborhood page shows how those buildings are spread across the city.
FAQ
Does the Jan. 4 reserve rule depend on when I sign the contract? Fannie Mae ties it to the loan application date, so it applies to Full Review applications dated on or after Jan. 4, 2027. The date your lender records your application is the one that counts.
Are small buildings treated differently? Yes. Under the 2026 revisions, projects with 10 or fewer units can qualify for expanded waivers of project review if they meet Fannie's conditions.
Is an FHA loan a realistic backup? Rarely in South Florida. MIAMI REALTORS counts 21 FHA-approved buildings out of 2,397 across the three counties.
Does this post replace advice from a lender or attorney? No. Loan eligibility depends on your lender's review of your file and the building's file. Treat the details above as questions to bring to them.
If you own a Miami condo and are weighing a sale before the Jan. 4 reserve change, Stephanie Muzzillo and The Luxury Palms Group can review your building's documents alongside your unit and tell you which buyers can realistically finance it. Start with a complimentary home valuation, and we will price your condo against buildings with the same financing status as yours.
