Getting a Mortgage on a Florida Condo: Warrantable vs. Non-Warrantable, SIRS and FHA/VA Approval

Florida condo buyers keep running into the same surprise: they qualify for a loan, but the building doesn't. Buyers often report lenders stalling because an association wouldn't answer the structural section of a condo questionnaire, or because a building showed up as ineligible after its inspections. This guide explains why, and what to check before you write an offer.

What does "warrantable" mean?

A condo loan is reviewed twice: once for you and once for the project (the building and its association). "Warrantable" is lender shorthand for a project that meets Fannie Mae or Freddie Mac eligibility rules, so a conventional loan on a unit can be sold to them. "Non-warrantable" means the project does not meet those rules right now. It is a snapshot of the association's finances, insurance, legal status and physical condition, not a permanent label.

Fannie Mae lists characteristics that make a project ineligible (Selling Guide B4-2.1-03). The ones Florida buyers hit most often:

• Critical repairs. This includes material deficiencies, water intrusion, advanced deterioration, failing a required structural inspection, or unfunded repairs over $10,000 per unit needed within 12 months.
• Litigation involving the association that relates to safety, structural soundness or habitability.
• Hotel-style operation, such as rental pools, daily rentals, front-desk services or "resort" branding.
• Single-entity ownership above the limits (for example, one owner holding more than 20% of units in a project of 21 or more units).
• Commercial space above 35% of the project or building.

Fannie Mae also says that if a structural or mechanical inspection was done within three years of the lender's review, the lender must get and review it. If it shows unaddressed critical repairs, the project is ineligible until the repairs are completed and documented.

How do Florida's milestone inspections and SIRS affect financing?

After the 2021 Surfside collapse, Florida added two requirements for condo buildings three habitable stories or higher:

• Milestone inspection (s. 553.899, F.S.). A structural inspection by a licensed architect or engineer is due by December 31 of the year the building turns 30, and every 10 years after that. Local officials can require it at 25 years near salt water. Phase one is visual. If it finds substantial structural deterioration, a phase two inspection follows, and repairs must begin within 365 days of the phase two report.
• Structural integrity reserve study (SIRS) (s. 718.112(2)(g), F.S.). Required at least every 10 years, it covers the roof, structure, fireproofing, plumbing, electrical, waterproofing, windows and exterior doors, along with their remaining life and replacement cost.

These reports are exactly what a lender's project review reads. Findings that point to unfunded critical repairs can make a project ineligible for conventional financing until the work is done. An assessment that has already been levied to pay for repairs is treated differently from repairs that are needed but unfunded.

What documents can I get as a buyer?

Under s. 718.503(2), F.S., a buyer of a resale unit is entitled, at the seller's expense, to:

• the declaration, articles, bylaws and rules
• the annual financial statement and budget
• the inspector's summary of the milestone inspection, if one applies
• the most recent SIRS, or a statement that one hasn't been completed
• the "Frequently Asked Questions and Answers" document

Review these, plus the board minutes and any special assessments, before your deposit goes hard. Share them with your loan officer early.

Can I use an FHA loan on a Florida condo?

Yes, if the project is FHA-approved, or if the unit qualifies for Single-Unit Approval. HUD says Single-Unit Approval is available in a project that isn't FHA-approved if it is complete, has at least five units, is not manufactured housing and meets a subset of FHA rules on concentration, owner-occupancy and finances (HUD FHA Condominiums). You can check a project's status with HUD's condo search. See our FHA loans in Florida page.

Can I use a VA loan on a condo?

Yes, if the project is VA-approved. VA approves the project, not the individual unit. Search the VA Condo Report by state and project name. You and the unit still have to qualify on their own. See VA loans in Florida.

What if the condo is non-warrantable?

Non-warrantable doesn't always mean "no loan." Some portfolio and non-QM lenders finance units in projects that don't meet agency rules, and investors sometimes use DSCR loans. Terms, required equity and costs vary widely by lender, and these loans often carry higher rates and costs than agency loans. Compare the Loan Estimates line by line; our Loan Estimate guide shows you how.

A pre-offer checklist

1. Ask the listing agent for the condo questionnaire status and whether the building is three or more habitable stories.
2. Request the milestone inspection summary and the SIRS.
3. Ask about pending or planned special assessments and any litigation.
4. Check the HUD and VA lists if you plan to use FHA or VA.
5. Get an HO-6 insurance quote and confirm the master policy meets your lender's requirements.
6. Include HOA dues and any assessment payment in your budget. Lenders count them.

How Skyline Mortgage helps

As a broker, we can review a project against more than one lender's condo guidelines. Start with our Florida mortgage broker page or see conventional loans in Florida. Contact us or call (407) 663-4743.

Buying a condo in South Florida? See our Miami mortgage broker page.