Non-Warrantable Condo Loans in Florida
Found the right unit, but the building does not qualify for a standard conventional loan? A non-warrantable condo loan may still get you to closing. We help you understand why the building was flagged and which financing paths remain open.
When the building, not the buyer, is the issue
A condo is called warrantable when the project meets the standards Fannie Mae or Freddie Mac set for conventional loans they buy. When a building falls outside those standards, the project is non-warrantable. Your credit and income can be excellent, and a standard conventional loan may still be unavailable for that unit.
That does not end the conversation. Some portfolio and non-QM lenders keep these loans on their own books and set their own building standards. Terms are often different, typically with a larger down payment, more reserves, or higher pricing, so the earlier you know a building’s status, the better you can plan your offer.
Why a Florida condo becomes non-warrantable
Too much commercial space
Nonresidential space above 35% of the project's square footage.
Concentrated ownership
In projects with 21 or more units, one entity owning more than 20% of the units, with limited exceptions.
Owners behind on dues
In a full review, more than 15% of units 60 or more days delinquent on association assessments.
Pending litigation
The association party to pending litigation, with some minor exceptions.
Critical repairs or failed inspections
Material deficiencies, significant water intrusion, advanced deterioration, failed mandatory structural inspections, or large unfunded repairs due within 12 months.
Hotel-style operation
Projects run like hotels, with rental pools or hotel services, are generally ineligible for standard conventional financing. See condotel loans.
A path forward for the right unit
Buy in the building you want
Waterfront and high-rise buildings in South Florida are frequently affected. A portfolio loan can keep those units within reach.
Lender-set building standards
Portfolio lenders evaluate the project against their own criteria, which can accept issues that rule out agency financing.
Primary, second home, or investment
Programs exist for different occupancy types, subject to each lender's rules.
Clear trade-offs
Expect different pricing, down payment, and reserve requirements than a warrantable condo. We put the numbers side by side.
Insurance reviewed up front
The master policy, windstorm deductible, and flood coverage are reviewed early so they do not derail closing.
Fewer surprises
Checking the building before you make an offer protects your deposit, inspection, and appraisal costs.
The building gets underwritten too
Portfolio lenders set their own standards. These are the areas they typically examine.
- Condo questionnaire
- The association or management company completes the lender's questionnaire on budget, reserves, ownership, delinquencies, insurance, and litigation.
- Budget and reserves
- The annual budget, reserve contributions, and any structural integrity reserve study.
- Inspections
- Florida milestone inspection status and findings for buildings three habitable stories or taller, and the plan to address required repairs.
- Special assessments
- Purpose, amount per unit, approval status, and payment schedule of any assessment.
- Insurance
- Master policy coverage, windstorm deductible, flood coverage, and your own HO-6 policy.
- Your profile
- Credit, income, assets, and reserves, reviewed under the lender's program.
What to gather
Some of these come from you and some from the association or listing agent.
The listing or unit address and the building's name
The association's current budget and most recent financial statement
Milestone inspection summary and structural integrity reserve study, if available
Master insurance policy summary, including windstorm deductible
Details of any approved or proposed special assessments
Your income, asset, and credit documents for pre-approval
From building review to closing
Identify the building
Share the unit you are considering so we can check its likely status early.
Review the project
Gather the budget, reserves, insurance, inspection status, and any litigation or assessments.
Match the program
Compare warrantable options, if any, against portfolio and non-QM programs.
Pre-approval and offer
Write the offer with financing terms and timelines that fit the chosen program.
Questionnaire and underwriting
The lender reviews the association's questionnaire and your file together.
Closing
Review the Closing Disclosure at least three business days before closing and confirm wiring instructions by phone.
Warrantable vs. non-warrantable condo financing
A general comparison. Exact terms depend on the lender and the building.
| Feature | Warrantable condo | Non-warrantable condo |
|---|---|---|
| Building standards | Meets Fannie Mae or Freddie Mac project criteria | Falls outside those criteria |
| Loan types | Conventional, plus FHA or VA if separately approved | Portfolio and non-QM programs |
| Down payment | Set by the agency program | Often higher, set by the lender |
| Pricing | Agency pricing | Often higher |
| Reserves | Program-specific | Often more required |
| Resale considerations | Broader pool of financed buyers | Future buyers face the same financing limits |
Non-Warrantable Condo Loans FAQs
How do I know if a condo is non-warrantable?
The lender reviews the project, usually through a condo questionnaire completed by the association. Common triggers include high commercial space, concentrated ownership, high dues delinquencies, litigation, critical repairs, and hotel-style operation.
Can I still get a mortgage on a non-warrantable condo?
Often, yes. Some portfolio and non-QM lenders finance units in buildings that do not meet agency standards, typically with different down payment, reserve, and pricing requirements.
Do Florida's condo safety laws affect financing?
They can. Florida requires milestone inspections for condominium buildings three habitable stories or taller once they reach 30 years of age, and structural integrity reserve studies. Failed or unaddressed findings can affect eligibility and future costs.
Can a building become warrantable again?
Sometimes. If the issue is resolved, such as litigation ending, delinquencies falling, or repairs being completed, the project may meet agency standards again. Status is reviewed at the time of each loan.
Will it be harder to sell a non-warrantable condo later?
It can be, because future buyers face the same financing limits unless the building’s status changes. Factor this into your price and plans.
Is a condotel the same as a non-warrantable condo?
A condotel is one type of non-warrantable project, defined by hotel-style operation. It has its own financing considerations, covered on our condotel loans page.
Check the condo before you make an offer
Send us the unit you are considering. We will help identify the building's likely status and the financing paths that fit.
Important disclosures
Programs, rates and requirements are subject to change and borrower qualification. This is not a commitment to lend.