In Florida, the building gets underwritten too. Start there.

Why Florida condos are different

After the 2021 Surfside collapse, Fannie Mae and Freddie Mac tightened project standards around deferred maintenance, structural inspections, and special assessments. Florida then passed laws requiring milestone structural inspections and structural integrity reserve studies for buildings three stories and taller, with reserve funding requirements phasing in. The result: more projects fail agency review, and association documents matter more than ever.

Insurance compounds it. Master policies with high wind deductibles, dropped carriers, or inadequate coverage can block agency financing on their own, and the association’s premiums flow into your dues.

How the project review works

For a conventional loan, the lender orders a condo questionnaire from the association and reviews the budget, reserves (at least 10% of the budget going to reserves is the standard), owner-occupancy and investor concentration, commercial space, single-entity ownership, litigation, insurance, and any special assessments or deferred maintenance. Projects that pass are “warrantable”. Limited reviews with less documentation are possible for primary residences with larger down payments.

FHA requires the project to be on its approved list or to qualify for single-unit approval; VA requires VA project approval. Both lists are public and worth checking before you fall in love with a unit.

A “non-warrantable” project isn’t unfinanceable; it means agency loans are out and portfolio or Non-QM financing, with larger down payments and higher rates, is the path.

What a good condo lender does for you

• Checks FHA and VA approval status and asks for the association documents at contract, not two weeks before closing
• Reads the budget, reserve study, and meeting minutes for special assessments and structural findings before you spend on an appraisal
• Prices the alternatives if the project is non-warrantable, instead of discovering it late
• Flags insurance issues early: master policy coverage, wind deductible, flood zone
• Builds the full payment with realistic dues and assessments so your debt ratio is right the first time

Tradeoffs and eligibility

• Agency pricing adds small adjustments for condos, more with higher loan-to-value
• Condotels, projects with mandatory rental pools, and timeshares are generally ineligible for agency loans
• Pending special assessments may need to be paid or escrowed; large ones can sink approval
• New construction and recently converted projects have their own presale and completion requirements
• Investor-heavy buildings (high percentage of rentals) can fail owner-occupancy tests for second-home and investment loans

What to request from the association

• Completed condo questionnaire (lender provides the form)
• Current budget and year-end financials
• Reserve study and structural integrity reserve study if required
• Milestone inspection report for buildings three stories and taller
• Master insurance policy declarations (hazard, wind, flood, liability, fidelity)
• Meeting minutes for the last 12 months
• Pending or planned special assessments and any litigation disclosure
• Governing documents (declaration, bylaws, rental restrictions)

Common questions

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