For any application dated on or after August 3, 2026, Fannie Mae no longer lets lenders approve a conventional condo loan with a light review of the association. Every attached project that used to qualify for Limited Review now goes through Full Review, unless it qualifies for a waiver. Freddie Mac retired its Streamlined Review on the same date. In Delray Beach, the buyer's credit file and the condition of the unit still matter. What has changed is that the association's budget, reserves and insurance now decide how many people can bid on the unit at all.
A second date is coming. For Full Review applications dated on or after January 4, 2027, Fannie Mae's minimum for replacement reserves rises from 10% to 15% of the association's annual budgeted assessment income. That's about 12 weeks from today. A building that clears the bar for a December application could miss it for a January one.
What Full Review Asks of an Association
Limited Review let lenders approve conventional mortgages without a deep look at the association's finances. The Real Deal's August 9 analysis explains it plainly: The Real Deal reported that all conventional applications now go through full review unless they qualify for a waiver, and that lenders are also asking for insurance coverage and maintenance history.
Under Fannie Mae's Full Review process, the lender looks at the association's projected budget, its insurance, and whether the project is eligible. It also applies a 15% ceiling on units that are 60 or more days behind on regular dues or on any special assessment. Fannie Mae's condo FAQ adds an inspection rule. If a structural or mechanical inspection was completed in the past three years, the lender has to review it, though Fannie doesn't require one to be commissioned if none exists. A failed mandatory local inspection, or no way to show that critical repairs aren't needed, can make the project ineligible.
The change also closed off one shortcut. A lender that relies on a reserve study to show adequate reserves now has to confirm the budget carries the study's highest recommended allocation. Studies built on the baseline funding method, which lets the reserve balance approach zero without going below it, no longer count.
Who Can Bid When a Building Can't Clear Review
If a project fails Full Review, a conventional Fannie or Freddie loan isn't available on its units. The buyers left are mostly the ones who don't need that financing.
The other routes are narrow. According to the MIAMI REALTORS® + RWorld September 16 release, only 21 of the 2,397 condominium buildings in Miami-Dade, Broward and Palm Beach counties are approved for FHA loans. That's 0.9%. Freddie Mac's 30-year fixed rate averaged 6.67% in August 2026 and reached 7.17% as of September 15.
Here are the Palm Beach County numbers for August 2026 from that release. Countywide figures are the most recent available. September data is scheduled for October 16, and no Delray-only figures were published in the sources we reviewed.
| Palm Beach County, August 2026 | Condos | Single-family homes |
|---|---|---|
| Median sale price | $300,000, up 5.26% year over year | $650,000, up 3.17% |
| Months' supply | 6.7 | 3.5 |
| Median percent of original list price received | 93% | 95% |
| Median days from listing to contract | 69 | 40 |
Cash made up 48.1% of all closed Palm Beach County sales in August 2026, up from 45.5% a year earlier. County condo inventory fell 17.09% year over year to 5,770 listings, yet supply still sat at 6.7 months, the range the release calls balanced. Fewer listings and a balanced market at the same time point to slower condo sales. A countywide median can't show the split underneath, where some buildings can be sold to financed buyers and some mostly can't.
Palm Greens and the Associations Beyond the Deed
Delray Beach shows how many sets of books one sale can depend on. Palm Greens sits north of Lake Ida Road between Military Trail and Jog Road and has more than 1,400 condominiums and villas. Two separate condo associations, Condo 1 and Condo 2, govern the homes. A third body, the Palm Greens Recreation Association, runs the pool, clubhouse and tennis courts.
The Recreation Association filed for Chapter 11 in February. As The Palm Beach Post reported, it listed $43.7 million in liabilities, and neither condo association is a party to the bankruptcy. The same coverage described the condo associations as solvent and reported that buyers were waiting for the dispute to be resolved before purchasing.
By August, court-appointed trustee Robert Furr was preparing to pursue claims against those who may be responsible. The Palm Beach Post's August 6 report said any money recovered could reduce the cost of coming out of bankruptcy for residents, who may otherwise face special assessments. That is the latest report we found.
Fannie Mae's own rules treat these layers as part of the project. Its waiver of project review covers small projects of 5 to 10 units only when they sit outside a larger development or master association. In a Delray community with an umbrella body, the association that affects a sale may not be the one named on the deed.
The January 4 Clock, Step by Step
| Application date | How Fannie Mae project review works |
|---|---|
| Before August 3, 2026 | Limited Review allowed, with the archived Florida LTV limits |
| August 3, 2026 to January 3, 2027 | Full Review unless the project qualifies for a waiver; under Full Review, reserves of at least 10% of budgeted assessment income and no baseline-method reserve studies |
| On or after January 4, 2027 | Same paths; the Full Review reserve minimum rises to 15% |
Freddie Mac set the same January 4, 2027 date for its 15% minimum. The trigger is the application date, not the contract date. A Delray condo that goes under contract in late December, with the loan application dated in early January, is underwritten against the higher bar. An association budgeting reserves between 10% and 15% of assessment income qualifies on one side of that line and not the other.
"The biggest difference is that buyers now need to evaluate the financial health of the condominium association just as carefully as they evaluate the home itself."
Robert Smith, a regional president at FirstService Residential, said that to The Real Deal. He added that buildings still working through reserve funding or big capital projects such as roofs, concrete restoration, hurricane windows and elevators will be harder to finance. The publication also suggested that associations that have been proactive could see that premium built into their prices.
Where Florida Compliance and Fannie Mae Eligibility Differ
Delray associations have spent the past few years on state requirements. Florida requires milestone inspections for condo buildings at least three habitable stories tall, generally starting at 30 years of age. It also requires a structural integrity reserve study, or SIRS, covering key structural components and setting a funding plan. The state's 2025 HB 913 lets associations fund reserves through regular or special assessments, credit lines or loans, and allows a baseline funding plan.
An association can follow a baseline plan that state law allows. Fannie Mae, though, bars lenders from using a baseline-method study to show adequate reserves for applications dated on or after August 3. Fannie also says lenders aren't required to evaluate a reserve study in every eligibility review. So a SIRS on file shows state compliance, but it doesn't settle eligibility for a conventional loan.
The Paperwork That Usually Decides It
Fannie Mae doesn't require a single questionnaire form. Lenders can use their own forms or other records, as long as they have enough evidence to decide eligibility. Fannie names HOA minutes, financial statements and engineer reports as possible evidence. In practice, a Delray condo sale financed with a conventional loan tends to depend on these records:
- The current adopted budget and its line for replacement reserves, measured against 10% now and 15% for Full Review applications from January 4, 2027.
- Any structural or mechanical inspection completed in the past three years, plus the milestone inspection status where it applies.
- The insurance declarations for the project.
- Delinquency figures, measured against the 15% ceiling for units 60 or more days behind.
- Board minutes that mention pending special assessments, litigation or capital projects, including those of any recreation or master association above the condo association.
Detached units, 2 to 4 unit projects, and qualifying 5 to 10 unit projects outside a master association can be eligible for a waiver of project review instead.
FAQ
Does every Delray Beach condo now need a Full Review?
No. Full Review replaced Limited Review for attached established projects. Detached units and certain small projects can qualify for a waiver of project review. Cash purchases don't involve a GSE project review at all.
Does Fannie Mae publish a list of ineligible buildings?
Fannie Mae says it doesn't disclose project eligibility decisions to other parties. Its Condo Status Finder is a registration-based tool for associations, management companies and authorized advisors, and a "no findings" result doesn't mean Fannie reviewed or approved the project.
Did the August change affect investor loans?
Fannie Mae dropped the 50% owner-occupancy requirement for investor loans in established projects. Presale rules for new projects stay in place.
If you own or are considering a Delray Beach condo, the date that matters most right now may be January 4, 2027. Julio Nunez and our team can go through the building's budget, reserve line and inspection record with you before a buyer's lender does. Schedule Your Free Consultation.
This article is general information, not legal, tax or financial advice. Consult a qualified professional about your situation.
