What got easier
Rental-heavy buildings. An established building no longer fails because most of its units are rented. That single rule kept a great many resort-market and urban buildings out of conventional lending for investors; it no longer does. New projects still need at least half their units sold to owner-occupants or second-home buyers.
Small buildings. The waiver of project review now reaches new and established projects of ten units or fewer (five-to-ten-unit projects must not be part of a master association), so many small buildings skip the project review entirely.
New Florida projects. Fannie Mae dropped the requirement that new or newly converted attached projects in Florida go through its Project Eligibility Review Service.
What got harder
The full review, for almost everyone. Limited Review let lenders approve many established projects on a short list of checks. Industry groups estimated it handled roughly 40% of project reviews. Its retirement means more attached buildings are reviewed on budget, reserves, delinquency, insurance and litigation in full — which surfaces problems a lighter review could miss.
Reserves. The 15% minimum from January 2027 is a meaningful step up for associations that budget close to 10%. Boards that have not planned for it may see their building fail on reserves alone.
Deductibles. The $50,000-per-unit cap on the master policy deductible is a real constraint in coastal markets, where some associations raised deductibles to keep premiums manageable.
What did not change
Critical repairs, special assessments for unfinished critical repairs, litigation, condotel characteristics, single-entity ownership, commercial space and delinquency limits all stand. The 2021–2023 critical-repair rules adopted after the Surfside collapse remain in force.
What it means in Florida specifically
Florida gained the most from the PERS change and the end of the rental-concentration test, the latter especially in resort markets from Orlando to the Panhandle. It is also exposed to the two tightening changes: coastal associations that raised deductibles to hold down premiums now meet a $50,000-per-unit cap, and associations rebuilding reserves under the state's structural reserve rules face a 15% agency minimum from January 2027.
What this means for you
- If you were declined in 2024 or 2025 for rental concentration, ask again — that reason may no longer apply.
- If you are buying in a building that passed on a Limited Review before, do not assume it passes the full review now.
- If you own in a building budgeting near 10% for reserves, the January 2027 change is worth raising with the board now.
Sources, checked September 2026: Fannie Mae Lender Letter LL-2026-03 (March 18, 2026) · Freddie Mac condo project review fact sheet · Community Associations Institute, March 2026 · Fannie Mae Selling Guide B4-2.1-03, Ineligible Projects. Agency guides change; a lender confirms the rules in force on your application date.
Common questions
Did Fannie Mae remove the investor concentration limit for condos?
Yes, for established projects, effective March 18, 2026. New projects still need at least 50% of units sold to principal-residence or second-home buyers.
When does the 15% condo reserve requirement start?
For loan applications dated on or after January 4, 2027.
Is Limited Review still available?
No. Fannie Mae's Limited Review and Freddie Mac's Streamlined Review were retired for applications dated on or after August 3, 2026.
What is the maximum master policy deductible now?
Fannie Mae capped it at $50,000 per unit in its March 2026 changes.