Warrantable and Non-Warrantable Condo Loans in Florida
Condo financing can depend on much more than the borrower. Insurance, reserves,
litigation, special assessments, structural concerns, ownership concentration and
association documentation can determine whether a project qualifies for conventional
financing.
If your bank declined the condo project, the transaction may not be over.
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Why Florida Condo Financing Can Be Different From Financing a House
A borrower can have excellent credit, substantial income, significant assets and a
large down payment and still have a condominium loan declined. The reason may have
nothing to do with the borrower. The condominium project itself must also satisfy
the lender’s requirements.
Mortgages Done Right Inc. works with conventional, jumbo and specialty non-QM lenders.
When a project does not satisfy Fannie Mae or Freddie Mac standards, Greg Hayden can
review why it was declined and determine whether a non-warrantable condo lender may
have another solution.
Warrantable vs. Non-Warrantable Condominiums
Projects That Meet Agency Eligibility Requirements
A warrantable condominium generally meets the applicable project requirements for
conventional financing through Fannie Mae or Freddie Mac.
Depending on the transaction and project, review may include insurance, financial
condition, reserves, structural condition, special assessments, litigation,
ownership and other association information.
A Project That Does Not Meet Standard Agency Guidelines
A condominium may be considered non-warrantable because one or more project
characteristics do not satisfy conventional agency requirements.
That does not automatically mean the condominium cannot be financed. Specialty
non-QM and portfolio lenders may evaluate the project under different guidelines,
depending on the specific issue and overall risk.
Limited Review Ended for New Applications Beginning August 3, 2026
Fannie Mae retired the Limited Review process for loan applications dated on or after
August 3, 2026. Established condo projects that previously qualified for Limited Review
generally must now use Full Review or, when permitted, a Waiver of Project Review.
Freddie Mac also ended availability of its Streamlined Review path for applications
received on or after August 3, 2026.
No longer available for new applications beginning August 3, 2026.
More established projects may now require a more comprehensive project review.
Fannie Mae also retired the mandatory Florida PERS path for many new attached condo projects.
Condo guidelines are detailed and can change. Final eligibility depends on the loan
program, lender, project and transaction.
Your Bank Declined the Condo — That Does Not Always Mean the Deal Is Dead
Many conventional lenders follow agency project standards and may have additional
lender overlays. When the association cannot satisfy those requirements, the lender
may decline the loan even though the borrower is highly qualified.
Mortgages Done Right has access to non-QM and specialty condo lenders that may
consider projects with certain insurance issues, reserve deficiencies, litigation,
special assessments, ownership concerns, mixed-use characteristics or other
non-warrantable conditions.
The reason the project failed matters. Greg can review the project
documentation and determine whether another lender may look at the situation differently.
Already Have Condo Documents?
Send Greg the condo questionnaire, budget, insurance information, reserve study or
SIRS, special-assessment information and any litigation documents you already have.
What Can Make a Florida Condo Non-Warrantable?
There is no single reason a project becomes difficult to finance. The lender needs
to understand the specific project issue and how much risk it creates.
- Master insurance coverage or deductible concerns
- Insufficient association reserves
- Pending or active litigation
- Special assessments
- Structural or critical-repair concerns
- Single-entity ownership
- New-project presale requirements
- Commercial or mixed-use space
- Condo-hotel or transient-use characteristics
- Incomplete condo questionnaire or association documents
Why the Details Behind the Project Issue Matter
Master Insurance
Conventional financing requires the condominium project’s insurance to meet
applicable standards. Coverage amounts, deductibles, policy terms and the type
of coverage can create eligibility problems.
Specialty lenders may use different project standards, although adequate acceptable
insurance is still required.
Association Reserves
Reserve funding has become increasingly important in condominium underwriting.
A project with insufficient reserves or significant deferred maintenance may not
satisfy conventional project requirements.
Some non-QM lenders may evaluate the project’s overall financial condition differently.
Special Assessments
The amount of an assessment is only part of the story. A lender may also consider
why the assessment was imposed, whether the underlying work is complete and whether
additional financial exposure remains.
Litigation — The Story Matters
The word “litigation” does not tell the entire story. A lender may want to know
who is suing whom, what the dispute involves, the potential financial exposure,
whether insurance is providing a defense and whether an assessment could result.
A routine insured dispute may be viewed very differently from litigation involving
major construction defects, structural safety or substantial unfunded liability.
Structural / SIRS Issues
Florida structural inspections, reserve studies and building repairs can affect
mortgage eligibility. Significant unresolved structural or life-safety concerns
can make financing difficult even with specialty lenders.
Condo Questionnaire Problems
Sometimes the problem is incomplete documentation rather than a fundamentally bad
project. Associations may not answer questions completely or may be unable to provide
documents required for an agency review.
Investor Concentration, Single-Entity Ownership and New Projects
These issues need to be separated because the rules are not all the same.
Investor Concentration
Fannie Mae retired its previous 50% investor-concentration limit for established
projects reviewed under Full Review. However, lender overlays and other project
eligibility requirements may still apply.
Single-Entity Ownership
A large number of units owned by one individual, company, investor group or related
entity can still create a project eligibility issue.
New Condo Projects
New projects can have additional presale, control, completion and legal-document
requirements that do not apply in the same way to established projects.
How Non-QM Condo Lenders May Approach a Project Differently
Non-QM lenders are not required to make every project fit the same agency box.
Depending on the lender, transaction and project, there may be solutions for condos
that cannot obtain conventional agency approval.
Some specialty lenders may consider projects with certain insurance deficiencies,
reserve issues, litigation, assessments, ownership characteristics, mixed-use
components or other non-warrantable features.
These are not automatic approvals. The lender still evaluates the borrower,
property, project, insurance and overall risk. The advantage is having more than
one set of project guidelines available.
Condotels, Mixed-Use Projects and Other Difficult Condo Scenarios
Certain condominium projects have characteristics that fall outside traditional
agency eligibility even when the individual unit is attractive and the borrower
is financially strong.
Condotels
Projects with hotel-style services, short-term rental activity, front desks,
rental programs or other transient-use characteristics may require specialty financing.
Mixed-Use Projects
Projects containing significant retail, restaurant, office or other commercial
space can require additional review or a specialty lender.
Unique Projects
Small associations, unusual ownership structures, high investor participation or
other project characteristics may need a lender experienced with non-standard condos.
One Bank Has One Condo Box — Greg Can Compare Multiple Lenders
Condo financing can change dramatically from one lender to another. Mortgages Done
Right works with more than 25 wholesale lenders, including conventional, jumbo and
specialty non-QM sources.
Condo Financing Throughout South Florida
Explore mortgage information for Palm Beach County, Palm Beach, Boca Raton, Delray Beach, Fort Lauderdale, Broward County, Jumbo Loans, and our No Income Verification Mortgage Loans.
Warrantable and Non-Warrantable Condo Loan Questions
What is a non-warrantable condo?
A non-warrantable condominium is a project that does not satisfy one or more
requirements for standard agency condominium financing. The issue may involve the
project rather than the individual borrower.
Can I finance a condo that my bank declined?
Possibly. The first step is identifying exactly why the project was declined.
Specialty non-QM or portfolio lenders may have different project guidelines depending
on the issue, borrower and transaction.
Can a condo with litigation still get financing?
Sometimes. The lender may review the nature of the litigation, financial exposure,
insurance coverage, potential assessments and whether the dispute involves structural
or safety concerns. The story behind the litigation matters.
Can a condo with low reserves obtain a mortgage?
It depends on the project and lender. Insufficient reserves can create conventional
eligibility problems, while some specialty lenders may evaluate the association’s
overall financial condition under different standards.
What changed for Florida condo financing on August 3, 2026?
Fannie Mae retired Limited Review for applications dated on or after August 3, 2026.
Projects previously eligible for Limited Review generally must now use Full Review
or an applicable Waiver of Project Review. Freddie Mac also ended Streamlined Review
availability for new applications beginning on that date.
Do you finance condotels and mixed-use condo projects?
Mortgages Done Right works with specialty lenders that may consider condotels,
mixed-use projects and other non-standard condominium properties. Eligibility
depends on the specific project and loan program.
What documents should I send if my condo was declined?
If available, send the condo questionnaire, association budget, master insurance
information, reserve study or SIRS, special-assessment documentation, litigation
information and the reason your previous lender declined the project.
Talk With Greg About Your Condo Project
If a bank or lender declined the condominium because of the project, call Greg Hayden
before assuming the property cannot be financed. There may be another conventional,
jumbo or non-QM solution.