Complete Florida Condo Financing Guide
Written by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
Florida condo financing is the process of getting a mortgage on a condominium, which involves approving both you and the condo project itself. Lenders scrutinize the association's finances, occupancy, and structural reserves.
This guide explains warrantable versus non-warrantable condos, how Florida's inspection laws affect lending, and which loans work for condos. Mortgage Capital, NMLS# 1859012, finances condos statewide.
Why condos are reviewed twice
With a condo, the lender approves you and the building. They look at the homeowners association's budget, reserve funds, owner-occupancy ratio, and any litigation before lending.
A perfectly qualified buyer can still be denied if the project does not meet standards. Checking the building's status early saves heartache.
Warrantable versus non-warrantable
A warrantable condo meets Fannie Mae and Freddie Mac standards, opening conventional and lower-rate financing. A non-warrantable condo fails one or more tests, such as too many rentals or thin reserves.
Non-warrantable condos still finance through portfolio and non-QM lenders, usually at a higher rate and larger down payment.
Florida structural inspection laws
After recent building tragedies, Florida tightened condo safety and reserve requirements. Older buildings must complete milestone inspections and fully fund reserves, which affects lending and dues.
Special assessments and underfunded reserves can make a building harder to finance. Review the association's documents before you buy.
Loan options for condos
FHA and VA finance condos on approved project lists or through single-unit approval. Conventional loans require warrantability. Non-QM loans cover non-warrantable units.
Down payments range from 3.5% on FHA approved condos to 20% or more on non-warrantable financing.
Doing condo due diligence
Request the budget, reserve study, meeting minutes, and any assessment history. Healthy reserves and stable dues signal a well-run building that will finance smoothly.
We help confirm a project's lending status before you write an offer so you do not waste an inspection on an unfinanceable unit.
Complete Florida Condo Financing Guide: step by step
Frequently asked questions
What is a warrantable condo?
A condo that meets Fannie Mae and Freddie Mac standards for occupancy, reserves, and litigation, making it eligible for conventional financing.
What is a non-warrantable condo?
A condo that fails one or more agency tests, such as too many rentals or thin reserves. It finances through portfolio or non-QM loans.
Can I get an FHA loan on a condo?
Yes, if the project is FHA-approved or qualifies through single-unit approval. We check the list before you offer.
How do Florida inspection laws affect condo loans?
Older buildings must complete milestone inspections and fund reserves. Underfunded buildings can be harder to finance.
Why was my condo loan denied when I qualified?
The building, not you, likely failed a lender test. Project approval is separate from borrower approval on condos.
How much down payment for a condo?
3.5% on FHA approved condos, 3% to 5% on warrantable conventional, and 20%-plus on non-warrantable financing.
What documents should I review before buying a condo?
The association budget, reserve study, meeting minutes, and any special assessment history.
Are special assessments a red flag?
Not always, but frequent or large assessments and thin reserves can signal a building that is harder to finance.