If you’re buying or selling a Delray Beach condo, mark August 3rd on your calendar.
Fannie Mae and Freddie Mac are tightening their condo project financing reviews and the change couldn’t hit the Delray Beach condo market more directly.
Here’s the short version: both agencies are retiring their shortcut review paths. Fannie Mae is dropping its Limited Review process, and Freddie Mac is doing the same with its Streamlined Review. Loan applications dated on or after August 3rd will need a Full Review unless the property qualifies for a waiver.
What changes if you’re considering a Delray Beach condo?:
* Deeper scrutiny. A Full Review digs into the association’s budget, reserves, insurance, financial condition and overall eligibility, not just the buyer’s qualifications.
* Higher reserve requirements. Starting January 2027, replacement reserve funding jumps from 10% to 15% of annual budgeted income for applicable loans.
* A small-project exception. Fannie Mae is expanding its Waiver of Project Review to cover new and established buildings with 10 or fewer units, which could spare smaller associations from the full process.
* Some relief on Florida projects. New or newly converted condo buildings no longer need to pass through Fannie Mae’s Project Eligibility Review Service; lenders can now handle that review directly.
* Insurance flexibility. Updated roof coverage standards are part of this broader package and have already caught attention among agents and lenders.
More to consider with a Delray Beach condo:
Reserve Scrutiny: Lenders can no longer use baseline funding methods to qualify building reserves, putting pressure on associations that are underfunded.
Stricter Budgets: Associations face intense scrutiny over financial health, delinquencies, and upcoming structural milestone inspections, which may cause delays for pending real estate transactions.
delays for pending real estate transactions
My take: I could be wrong, but this is a paperwork problem before it’s a deal-killer.
Buyers should expect more questions about a building’s reserves and insurance. Sellers and associations need clean documentation ready, not scrambled together after an offer lands.
If you’re on the fence about listing your condo, getting ahead of the August 3rd deadline could save your buyer’s lender a headache — and save your closing timeline.
(Main Photo: Delray Beach Condo Coastal House along A1A during sunset)
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*** My 2026 Florida real estate theme is playing out to plan. Condo sales are surging. Look at their strong double digit increases here.
*** Tonight is the Delray Beach DRONE Show, Delray in the Sky! Show starts at 8:30 pm at Old School Square.
*** Walkability – check. Good value – yup. Security – uh huh. Fitness n pool – you bet. This Pineapple Grove Condo unit may be of interest. Can’t rent in first year of ownership, but after that…
*** Stunning, new(er) Stuart & Shelby 2025-built downtown Delray home puts Delray Beach’s finest dining, boutiques, and beach scene within easy reach — while the city grows around you.
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*** South Florida Inventory is BELOW 2019 ***
Last week’s supply was 50,398
Today’s supply is 50,137
*** Supply is DOWN 51 of the last 64 weeks ***
