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FLORIDA CONDO FINANCING
Financing options for Florida condo buyers and investors, including condo projects that may not meet standard conventional requirements.
With a condo, the lender looks at you and at the whole condo project: its finances, insurance, owners and any legal issues. If the project doesn't meet standard conventional rules, it is often called "non-warrantable". Other loan programs may still be available. Requirements vary by lender and loan program.
A warrantable condo is generally a condo project that meets the project eligibility requirements for standard conventional financing. These requirements can include the project's finances, insurance, ownership, litigation and other project characteristics.
A project may be treated as non-warrantable when one or more project items fall outside standard guidelines. Common examples:
Exact thresholds vary by lender and loan program. We can review available project information early in the financing process.
Your unit shares a roof, insurance and budget with every other owner. If the association is short on money or facing a lawsuit, that can affect the value of every unit. That's why lenders often ask for a condo questionnaire, the HOA budget, insurance details and sometimes building inspection reports.
If the project is warrantable, a conventional loan may be an option. If it isn't, non-QM or portfolio lenders (lenders that keep the loan instead of selling it) may still finance the unit, often with different down payment and rate terms.
International buyers who live outside the U.S. may be able to finance an eligible Florida condo through Foreign National programs, depending on the project, the lender and your documentation. Many buyers from abroad choose condos because the building handles exterior maintenance.
Investors may use programs such as DSCR, where qualification may focus mainly on the unit's rental income. In Miami and South Florida, check rental rules, HOA dues, insurance costs and any building repair plans before you make an offer. Florida's newer condo safety and reserve rules can also lead to higher HOA dues or special assessments in some older buildings.
Often, yes. Some non-QM and portfolio lenders finance non-warrantable condos. Terms such as down payment and rate usually differ from a standard conventional loan, and requirements vary by lender and program.
It may be possible through Foreign National programs, depending on the project, the lender and your documents. The building must also be acceptable to the lender.
Common reasons include high investor ownership, HOA delinquency, litigation, large special assessments, insurance issues or condotel operation. Each lender sets its own limits.
Yes. Pending litigation involving the association can limit which loan programs are available. Some lenders accept certain minor cases after review.
It can. Lenders look at the size, purpose and payment schedule of the assessment, and the payment may count in your monthly costs.
Some investment programs, such as certain DSCR loans, allow LLC ownership. It depends on the lender and program.
Some specialty lenders finance condotel units, usually with larger down payments. Many standard programs do not.
Requirements vary by lender and loan program. This page is general information, not a loan offer or approval.
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