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Non-Warrantable Condo Florida — Portfolio Financing

Non-Warrantable Condo Loans Florida

Financing for Florida condos that fail Fannie Mae and Freddie Mac rules. When a conventional loan is declined, our portfolio and non-QM lenders get the deal done. NMLS# 1859012.

10%
Min Down
Portfolio
Lenders
Condotel
OK
Get Pre-Approved📞 (561) 300-0380
By Onias Derilus, NMLS# 1859012 · Licensed FL Mortgage Broker · Last Updated: May 2026
Non-Warrantable Condo Loans Florida

Non-Warrantable Condo Loans in Florida

When a condo building does not meet agency guidelines, a normal conventional loan disappears. A non-warrantable condo loan steps in and finances the unit anyway, through lenders who look past the agency rulebook.

This matters more in Florida than anywhere else. Reserve studies, structural inspections, and special assessments have flagged hundreds of buildings, and a lot of good units now sit on lender blacklists through no fault of the buyer.

Who is it for? Buyers who found the right unit in the wrong building on paper, investors in rental-heavy projects, and anyone eyeing a condotel or short-term rental condo.

Eligibility & Requirements

✓Down payment from 10% depending on the building
✓Portfolio and non-QM lenders, not agency loans
✓Primary, second home, or investment
✓Condotels and rental-heavy projects considered
✓Litigation and low reserves reviewed case by case
✓Credit score requirements vary by lender

Official resource: CFPB — Owning a Home.

Why This Loan Exists
Agency loan declinedBackup Path
Litigation in the HOAConsidered
Investor-heavy buildingAllowed
Condotel or rental unitFinanced
Terms depend on the building and your file.
Example — Illustration
Purchase price$400,000
Down payment (15%)$60,000
Loan amount$340,000
Loan sourcePortfolio
Building statusNon-warrantable
OccupancyPrimary or investment
Illustration only — not a rate quote or approval.
Rates & Costs

What Non-Warrantable Financing Costs

A non-warrantable condo loan runs a bit above a conventional rate because the lender holds the risk on its own books. The trade is simple: a slightly higher rate and a larger down payment in exchange for a loan that would otherwise be declined outright.

The Building
Why the project failed review drives your rate and down payment.
Down Payment
More equity lowers the lender's risk and can improve your terms.
Broker Shopping
We compare portfolio lenders for the best terms on your building.

We do not post a rate — pricing depends on the building and your file. Request a personalized quote.

Pros & Cons

Non-Warrantable Condo Loan Pros and Cons

Advantages
✓Finances units agency loans decline
✓Litigation and low reserves considered
✓Condotels and rentals allowed
✓Buy the unit you actually want
✓Refinance later if the building qualifies
Trade-offs
✓Larger down payment required
✓Rate runs above conventional
✓Fewer lenders to choose from
✓Building docs get more scrutiny
✓May refinance out once building is fixed
How It Works

How Buyers Get Approved

1. Review the building
We check why the condo failed agency review and what lenders need.
2. Match the lender
We place your file with a portfolio or non-QM lender for that building.
3. Set the down payment
We find the lowest down payment the deal allows for your file.
4. Close on the unit
We manage the condo questionnaire and reserve docs to closing.
Florida Notes

Non-Warrantable Condos in Florida

After the Surfside collapse, Florida tightened its rules on condo reserves and structural inspections. The result is a wave of buildings now flagged for underfunded reserves or pending assessments, which knocks them off conventional lender lists even when the units are fine.

That is why this loan is so useful here. Coastal towers, older beachfront buildings, and rental-heavy projects in Miami, Fort Lauderdale, and along the Gulf routinely need non-warrantable financing. We know which lenders say yes to which buildings.

Compare Options

Non-Warrantable vs. Standard Condo Loans

How a non-warrantable condo loan compares with a conventional condo loan and FHA condo financing.

FeatureNon-WarrantableConventional CondoFHA Condo
Building Meets Agency RulesNoYesN/A
Loan SourcePortfolio / non-QMFannie / FreddieFHA-approved list
Down Payment10-25%3-5%3.5%
Litigation AllowedOftenNoNo
Investor-Heavy OKYesNoNo
Non-Warrantable Condo FAQ

Non-Warrantable Condo Questions, Answered

What is a non-warrantable condo?
A non-warrantable condo is a unit in a building that does not meet Fannie Mae or Freddie Mac guidelines, so a standard conventional loan will not touch it. Common reasons include high investor ownership, ongoing litigation, or low reserves. Mortgage Capital (NMLS# 1859012) arranges non-warrantable condo financing across Florida through portfolio and non-QM lenders.
Why do so many Florida condos become non-warrantable?
Florida leads the country in condo issues after the 2021 reserve-study and structural-inspection reforms. Many associations were flagged for low reserves, deferred maintenance, or special assessments, which pushes buildings onto lender blacklists. It is a bigger problem here than almost anywhere else.
Can I still get a mortgage on a non-warrantable condo?
Yes. We work with portfolio and non-QM lenders who underwrite the loan on its own merits instead of the agency condo rules. You will usually need a larger down payment and the rate runs a bit higher, but the deal gets done when a conventional loan would be declined.
How much down do I need for a non-warrantable condo?
Most non-warrantable condo loans want 10 to 25 percent down, depending on the reason the building failed review and whether it is a primary home or investment. We match your file to the lender with the lowest down payment for your specific building.
What makes a condo non-warrantable in the first place?
The usual triggers are more than half the units owned by investors, one owner holding too many units, pending litigation, inadequate reserves, high delinquency on HOA dues, or the project not being complete. Any one of these can flip a building to non-warrantable.
Do you finance condotels and short-term rental condos?
Often yes. Condotels and units in buildings with heavy short-term rental use are usually non-warrantable, and we have lenders who specialize in exactly that. We review the building's rental rules and reserves, then quote the terms that fit.
Explore Related Programs
Condo Loans FloridaNon-QM Loans FloridaPortfolio Loans FloridaAll Florida Loan Programs

Finance the Condo Others Declined

Portfolio and non-QM lenders · Condotels welcome · Licensed FL mortgage broker NMLS# 1859012

📞 (561) 300-0380

Rates are illustrative only. APR and payments vary by credit score, loan amount, and market conditions. Subject to credit approval. Not a commitment to lend. NMLS# 1859012. Equal Housing Lender.