WASHINGTON – Congressman Byron Donalds (R-FL) and Director Bill Pulte of the United States Federal Housing Finance Agency (FHFA) led the effort to successfully eliminate the restrictive Fannie Mae and Freddie Mac Limited Review process for condominium borrowers and owners in the State of Florida.

For decades, Florida condominium borrowers and owners have been harshly subject to a 25% down payment — a rate significantly higher than those applied in other states under the same Limited Review lending process. An extensive evaluation of the Limited Review process by the FHFA concluded that the program disproportionately burdened consumers and penalized owners in Florida.

By returning to the traditional underwriting process and simplifying access to documentation, lenders will be able to provide conventional financing options in a far more efficient manner. Floridians will now have access to the same nationwide traditional lending terms with down payments ranging from 3% to 5%. Congressman Donalds released the following statement:

"For the last 17 years, the Florida condo market has been singled out and subjected to overly burdensome Fannie Mae and Freddie Mac restrictions that don’t apply to any other state in the country. These 2008 policies are not only outdated and unfair to the Sunshine State, but they are an unnecessary barrier to condo financing and have limited the available housing options for Floridians. I want to thank Director Pulte for his leadership and his decisive action to ensure prospective condo owners in Florida are subject to the same terms and conditions as the rest of the nation."

See video summarizing the Donalds-FHFA action HERE.

What This Means For You:

This change effectively retires the remaining geographic restrictions that apply to the state of Florida. Geographic restrictions remain in effect until the Limited Review process is retired on August 3, 2026.

Lenders may implement the retirement of Limited Review immediately, but must do so for all loan applications dated on or after Aug. 3, 2026.

Established projects previously eligible for Limited Review must now be reviewed using the Full Review process or, when applicable, the Waiver of Project Review process in Selling Guide B4-2.1-02 Waiver of Project Review.

More:

• See Selling Guide B4-2.1-02 Waiver of Project Review HERE.

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