03/23/2026
MAJOR UPDATE FOR THE CONDO MARKET STARTING AUGUST 3, 2026 & JANUARY 4, 2027!
Here’s a quick breakdown of what this means for you.
🛑 THE CONS: WHAT'S RAISING CONCERNS
• More Time & Cost: End of Limited Review, Full Review Only means lenders must now verify condo association compliance on every loan, a burden that ultimately falls on buyers and sellers. This starts August 3, 2026.
• HOA Reserve Requirements: Raising mandatory reserve thresholds from 10% to 15% will likely cause many buildings to become newly ineligible. Current owners may be unable to sell or refinance, potentially causing property values to drop.
• Loss of Affordable Options: First-time homebuyers lose entry-level options when these properties become harder, or impossible to finance with conventional loans.
• Timeline: The Limited Review ends on August 3, 2026, with the reserve increase taking effect January 4, 2027.
✅ THE PROS: WHAT'S WORKING IN OUR FAVOR
• Insurance Relief: Allowing ACV roof coverage immediately ends a major bottleneck, potentially qualifying hundreds of buildings.
• Deductible Clarity: A capped $50,000 per-unit master policy deductible provides a clear standard for lenders, removing ambiguity.
• Waiver Expansion: Smaller buildings (5–10 units) may now bypass the full review under certain conditions, reducing friction.
These updates represent significant shifts in the real estate landscape. Contact me to learn how these changes might impact your next condo transaction!