Florida Non-Warrantable Condo Financing Guide
Buying a condo in Miami or South Florida? Learn how SIRS, milestone inspections, special assessments, and building repairs can affect your mortgage options.
What makes a Florida condo non-warrantable?
Your mortgage preapproval covers your qualifications as a borrower. For a condo purchase, the lender also evaluates the condominium project. A non-warrantable condo is one that falls outside the project guidelines for a particular agency loan. A unit can be in excellent condition while the building has an issue that affects financing.
Fannie Mae identifies several reasons a project may be ineligible, including critical repairs, inadequate master insurance, and significant pending litigation. Ask the lender which issue it found. The answer will help you determine whether to look for more documentation, wait for repairs, or explore another loan program.
How do SIRS, milestone inspections, and special assessments affect condo financing?
In Florida, a Structural Integrity Reserve Study (SIRS) helps a condo association plan and fund future work on major building components. A milestone inspection evaluates the building’s structural condition. If someone tells you a building is undergoing “SIRS repairs,” ask for the actual reports and the current scope of work so your lender can see what prompted the repairs.
A special assessment can pay for different kinds of work. Fannie Mae’s Selling Guide calls for lenders to review what an assessment funds. If it covers a critical repair and the issue remains unresolved, the project is ineligible under that guidance. A completed repair may still need an engineer’s report or similar documentation showing the issue was resolved.
For example, if you’re looking at an Aventura condo with a balcony assessment, ask whether the work is routine maintenance or addresses a structural concern. Ask for the engineer’s findings, current repair status, and what the unit owner owes. Those details matter for both the lender’s review and your cost of ownership.
What should buyers and Realtors ask for before making an offer?
Start with the building name, address, and unit number. Ask the seller or condo association which documents are available, then confirm with your lender what it needs for project review.
- The latest milestone inspection and SIRS, if applicable, along with any engineer letters or repair completion reports.
- Details of current or approved special assessments, including what they fund, what the unit owes, and when payments are due.
- The current association budget, reserve information, master insurance documents, and any relevant board meeting minutes.
- A completed condo questionnaire if the lender requests one.
Can you finance a non-warrantable condo in Florida?
Some portfolio or non-QM lenders use different condo project criteria and may consider a building that falls outside agency guidelines. Availability depends on the specific issue, your qualifications, and how you’ll use the property. Unresolved safety concerns can still limit your options.
If an alternative loan is available, compare the down payment, rate, APR, lender fees, and reserves. For a condo in Miami, Aventura, or elsewhere in South Florida, send Neev the building and unit details early so you can discuss financing options before committing to a closing timeline.