Condo financing guidelines in Florida continue to evolve, especially after recent structural concerns, reserve requirements, and insurance challenges throughout the state.

Several major changes to condo lending are now being implemented that could impact buyers, investors, condo associations, and even existing owners.

These updates are extremely important for anyone purchasing or refinancing a Florida condo.

Limited Condo Reviews Are Being Eliminated

One of the biggest changes in Condo Financing Florida involves limited condo reviews.

Previously, some established condo projects could qualify for a limited or streamlined review process if they met certain loan-to-value requirements.

That is changing.

Beginning August 3, 2026, the limited review process will be eliminated entirely. All condo projects will now require either:

• Full Condo Review
• Project Review Waiver

This is a major shift in Florida condo financing, as many transactions previously relied on streamlined approvals.

Buyers should expect:

• More HOA documentation requests
• Additional underwriting review
• More scrutiny of reserves and insurance
• Longer approval timelines in some projects

This makes it even more important to work with an experienced mortgage broker who understands condo financing guidelines before making an offer.

Condo Reserve Requirements Are Increasing

Another major Condo Financing Florida update involves HOA reserve requirements.

Currently, many conventional condo projects require that at least 10% of the HOA budget be allocated to replacement reserves.

Beginning January 4, 2027, the minimum reserve requirement increases to 15%.

This means lenders will be looking even closer at:

• HOA budgets
• Reserve funding
• Deferred maintenance
• Special assessments
• Financial stability of the association

Associations with weak reserves may face additional financing challenges moving forward.

Florida Condo Insurance Guidelines Are Changing

Insurance has become one of the biggest issues in condo financing in Florida.

New guidelines now allow Actual Cash Value (ACV) coverage for roofs and certain non-building structures, rather than requiring full replacement cost coverage in every situation.

This change became effective immediately.

In addition, lenders are now allowing standardized per-unit deductibles up to $50,000 for all perils, provided the deductible exposure is covered by the borrower’s HO6 policy.

These insurance updates are important because insurance affordability has become a major concern for Florida condo owners and associations.

Condo Project Review Waivers Expanded

Another positive Condo Financing Florida update affects smaller condo projects.

Previously, only projects with 2 to 4 units could potentially qualify for Waiver of Project Review or Exempt From Review status.

Now, projects with 2 to 10 units may qualify.

This change may help financing options for:

• Smaller condo buildings
• Boutique developments
• Townhome-style projects
• Certain investment properties

However, these projects still require:

• Warranty review for critical repairs
• HOA questionnaire addendums
• Insurance review
• Financial review

Florida Attached Condo Projects No Longer Require PERS

Another major Condo Financing Florida change affects new condo projects in Florida.

Previously, many attached-unit condo projects required submission through Fannie Mae PERS approval.

That requirement has now been retired. Florida attached-unit condo projects may now qualify under Full Review instead.

This may help:

• Builders
• Developers
• Buyers in newer projects
• Realtors working with pre-construction condos

Investor Concentration Rules Are Changing

Condo Financing Florida guidelines for investors have also improved.

Previously, established condo projects could not exceed 50% investor concentration for certain Full Review investor loans.

That restriction has now been retired on established projects.

This is important for:

• Real estate investors
• Vacation condo buyers
• Rental property financing
• Florida investment condos

However, new condo projects still maintain occupancy and presale requirements.

What These Condo Financing Florida Changes Mean for Buyers

These guideline changes show that condo financing is becoming more detailed and documentation-driven.

Lenders are focusing heavily on:

• HOA financial stability
• Insurance coverage
• Structural integrity
• Reserve funding
• Deferred maintenance
• Special assessments

Buyers should expect lenders to request:

• Condo questionnaires
• HOA budgets
• Reserve studies
• Master insurance policies
• HOA meeting minutes
• Structural inspection reports
• Condo bylaws and declarations

At North Star Mortgage Network, we help buyers and Realtors review these items early to avoid surprises during underwriting.

In today’s market, having a local mortgage expert review a condo project before making an offer can save significant time, money, and frustration later in the process.

Nathan Young
North Star Mortgage Network, Inc.
NMLS# 325206

Cell/Text: 904-613-7700