Florida's Condo Financing Rules Just Changed for Good: What the End of Limited Review Means for Buyers and Owners
Starting August 3, 2026, Florida is eliminating limited review condo financing for any condo building with more than 10 units, requiring lenders to fully vet the entire building — not just the buyer — before approving a loan.
I'm Joe Vairo — a 2x eXp ICON Agent, ranked the #3 real estate agent in Fort Lauderdale by Fort Lauderdale Magazine, and founder of the Vairo Group, ranked the #3 real estate team in Fort Lauderdale. I track financing changes like this closely because they directly affect how fast — and whether — condo buyers can get to the closing table. Here is the full breakdown.
What Was Limited Review, and Why Is It Going Away?
Limited review was a streamlined mortgage approval process that let buyers in established condo buildings skip a full building-level review, typically when putting down 25% to 30% and financing the purchase. It sped up closings by focusing mainly on the buyer rather than digging deep into the building's finances. As of August 3, 2026, that option is gone statewide for any condo building with more than 10 units.
What Changes Under Full Review?
Under full review, lenders now look at the entire building, not just the individual buyer. That means examining the building's reserves, its insurance coverage, its financial statements, and its overall financial standing before a loan gets approved. It's a more thorough process, but it also holds buildings accountable for maintaining their reserves and completing required inspections — which protects long-term property values.
What Happens in January 2027 With Reserve Requirements?
Condo buildings will be required to raise their reserve funds from the current 10% to 15% starting in January 2027. That's a meaningful jump, and it's on top of the full review requirement that starts this August — buildings have a limited runway to get their reserves and paperwork in order.
Does This Affect New Construction and Pre-Construction Condos?
New and pre-construction condos shouldn't be affected much by any of this. These buildings are delivered brand new with fully funded reserves already in place, so the full review requirement doesn't create the same friction it does for older, established buildings.
What About Condos Built Before 2005?
Condos built before 2005 — many from the '70s, '80s, and early 2000s — are the segment most affected, since older buildings often carry more deferred maintenance or structural work that needs attention. Despite that, the average sales price for condos built before 2005 sits around $424,000, up about $30,000 compared to the same time in 2021.
How Have Prices Moved for Newer Condos Built After 2005?
Condos built after 2005 have appreciated far more sharply over that same window. In 2021, the average sales price for these newer condos was about $816,000; today it sits just over $1.3 million.
What This Means for Buyers and Owners Right Now
If you're financing a condo purchase going forward, expect your lender to ask for more building-level documentation than before — reserve studies, insurance details, and financial statements — so build extra time into your closing timeline. If you already own in an older building, this is a good moment to check in with your association on where reserves and inspections currently stand, since the 15% requirement is coming in January 2027 regardless.
Am I Bullish on the South Florida Condo Market?
Yes, with the caveat that buyers need to understand exactly what they're getting into. There's real opportunity here, especially now that full review is forcing more transparency around a building's financial health before you commit.
FAQ
When do Florida's new condo financing rules take effect?
The change takes effect August 3, 2026, statewide, for any condo building with more than 10 units.
What is "limited review," and why is it ending?
Limited review was a streamlined mortgage approval process that skipped a full building-level review; it's being replaced by full review, where lenders examine the entire building's reserves, insurance, and financial statements.
How much are condo reserve requirements increasing?
Reserve funds are required to rise from 10% to 15%, effective January 2027.
Will this affect new construction condos?
It shouldn't have much impact, since new and pre-construction buildings are delivered with fully funded reserves already in place.
Want to Talk Through the South Florida Condo Opportunity?
I'm Joe Vairo with the Vairo Group. If you want an honest, current conversation about buying or financing a condo under these new rules, reach out.
📲 Text or call me at 954-830-1126
📩 Email me at [email protected] anytime — I respond personally
Joe Vairo is a 2x eXp ICON Agent, South Florida real estate agent, and Fort Lauderdale Magazine's #3 ranked agent in Fort Lauderdale. The Vairo Group, ranked the #3 real estate team in Fort Lauderdale, specializes in waterfront properties and luxury relocation in the $1M+ market.
Watch the original Short: Buying A Condo In South Florida Just Changed Forever
