Lending Is Shifting—Here’s What That Means for Buyers, Sellers, and Condos Right Now
Latest In Lending
By Chase Herd
I recently sat down with a great friend and trusted lender, Tuesday Blair, for a real conversation about what’s actually happening in today’s lending environment. There’s a lot of noise out there—but what we uncovered was something far more nuanced (and honestly, more optimistic) than most headlines suggest.
Let’s break it down.
Lending Isn’t Tightening—It’s Evolving
Contrary to what many buyers and sellers assume, lending hasn’t simply been getting stricter—it’s been evolving over the past few years. In some areas, guidelines have actually loosened or become more flexible, but that doesn’t necessarily mean the process feels easier.
Tuesday pointed out that we’re seeing more appraisal inconsistencies, largely because the market itself has been fluctuating. Homes aren’t always fitting neatly into past comparable sales anymore, which creates more variability in how properties are valued.
At the same time, there’s a quieter shift happening behind the scenes—and it’s one worth paying attention to.
Delinquency rates are rising across parts of the industry. In some recent reports, government-backed loans (like FHA and USDA) have seen notable year-over-year increases in loans that are 60+ days past due—meaning more homeowners are falling behind on their payments.
And that matters.
As more homeowners begin to feel financial pressure, we’re starting to see a subtle shift in seller behavior—more willingness to negotiate, price realistically, and consider stronger offers. It’s one of several factors contributing to a market that’s gradually moving toward balance.
Big Changes in Condo Lending (Finally, Some Good News)
If you’ve worked in real estate lately—especially in Florida—you know condos have been… complicated.
But there’s been a noticeable shift.
Tuesday shared that we’re starting to see some flexibility return in condo lending guidelines, particularly around insurance requirements and how certain projects are evaluated.
What’s changing:
More flexibility in how insurance policies are reviewed in some cases
Adjustments to how occupancy and project eligibility are evaluated
Increasing attention on reserve funding and financial stability within associations
While requirements are still stricter than they were years ago, these adjustments are helping open doors for buyers in situations that may have previously been more difficult to finance.
Transparency Is the New Standard
One of the most important shifts happening right now is around disclosure and transparency.
Lenders are placing greater emphasis on understanding the full condition of a condo association, including:
Deferred maintenance
Structural concerns
Upcoming or planned repairs
When this information is disclosed, it can be documented and may impact a project’s eligibility for certain types of financing.
At first glance, that might sound like a hurdle—but it’s actually a major advantage for buyers.
It helps ensure issues are addressed before a property changes hands, associations are held accountable and long-term property values are better protected.
The Fine Line of Disclosure
We also talked about something that doesn’t get discussed enough: over-disclosure.
While transparency is essential and required — there’s a difference between properly disclosing material issues and overemphasizing routine or minor items in a way that creates unnecessary concern.
Not every cosmetic or routine maintenance item needs to be presented in a way that escalates it into a major issue. However, all required disclosures should always be handled accurately and responsibly in accordance with guidelines.
The key is balance.
For any condo transaction, having the right documentation in place is critical:
Bylaws and covenants
Plat maps
Insurance details
Condo questionnaires
This is where experience truly matters—because missing or mishandling any of these can delay or even derail a deal.
Why Relationships Matter More Than Ever
One thing Tuesday emphasized—and I couldn’t agree more with:
Not all lenders are created equal.
In a market like this, working with a knowledgeable, accessible lender is everything—especially when navigating more complex transactions like condos.
Large, automated platforms may offer convenience, but they often lack the flexibility and problem-solving ability needed when challenges arise.
As agents, our role goes far beyond opening doors. It’s about:
Guiding strategy
Setting realistic expectations
Connecting clients with trusted professionals
The best agents don’t just provide a service—they build a network their clients can rely on. They have a team.
Where the Market Is Headed
We’re no longer in the frenzy of a seller’s market—and we’re not in a crash either.
We’re in something in between. A rebalancing - if you will.
Pricing matters more. Strategy matters more. Honesty matters more.
Sellers need to be realistic.
Buyers need to be informed.
And both need the right team behind them.
A Conversation That Meant More Than Market Data
As our conversation wrapped up, what stayed with me wasn’t just the data—it was the perspective.
Tuesday didn’t just talk about numbers. She talked about people—the families behind the loans, the quiet pressure many are navigating, and the responsibility we carry as professionals in this space.
There was a moment where the conversation shifted from strategy to something deeper.
A reminder that behind every transaction is someone navigating uncertainty, making big decisions, and hoping they’re doing the right thing.
And that’s why this matters.
Not just understanding the market—but showing up with clarity, honesty, and care.
This isn’t just real estate. It’s people’s lives.
A Conversation That Changed My Approach
That conversation didn’t just give me insight into lending—it reshaped how I approach every client interaction.
Whether it’s a condo deal, a single-family home, or an investment property, I’m walking away from this with a sharper mindset: lead with clarity, stay honest about the market, and guide clients with both strategy and empathy.
Because the reality is, every transaction has layers right now. There are more moving pieces, more nuance, and more responsibility on our end to make sure clients truly understand what they’re stepping into.
And having the right people in your corner makes all the difference.
That’s exactly why I trust working alongside Tuesday Blair.
She’s not just knowledgeable—she’s honest to her core, operates with a level of integrity that’s hard to find, and genuinely works her butt off for her clients. She’s the kind of lender who doesn’t just push deals through—she protects people, educates them, and shows up every step of the way.
And that’s the standard I hold myself to as well.
Because at the end of the day, it’s not just about getting to the closing table—it’s about making sure the people we’re helping feel confident, informed, and taken care of long after the deal is done.