A condo mortgage in Florida needs two approvals: yours and the building's. Lenders review the association's budget, reserves, insurance, owner-occupancy, delinquencies and lawsuits, and since the Surfside collapse, its milestone inspection and structural reserve study. If a building has unfinished critical repairs, many conventional and FHA loans aren't available until the work is done.
Why Florida condos get a second look
After the Champlain Towers South collapse in Surfside in 2021, Florida passed new condo safety laws (SB 4-D in 2022, updated by later bills including HB 913 in 2025). Two of them matter for your loan:
- Milestone inspection. Condo buildings with three or more habitable stories need a structural inspection by December 31 of the year they turn 30, then every 10 years. Local governments can require it earlier for buildings near the coast. If the first visual phase finds substantial deterioration, a more detailed second phase follows.
- Structural Integrity Reserve Study (SIRS). Associations must study and fund reserves for the roof, structure, fireproofing, plumbing, electrical, waterproofing and other key components, and can no longer waive that funding.
Lenders read these reports. A building that has done its inspection and funded its reserves is usually straightforward to finance. A building with open findings may not be, at least for now.
What the lender checks on the building
Fannie Mae, Freddie Mac and FHA each publish their own condo rules, so the details depend on the loan. In general, expect questions about:
| What we look at | Why it matters |
|---|---|
| Budget and reserves | For a full Fannie Mae project review, at least 10% of the association's budgeted income should go to reserves. |
| Critical repairs | A project with unaddressed critical repairs isn't eligible for Fannie Mae loans until the work is completed and documented. |
| Special assessments | How large, what they're for, and whether they're paid or still coming. |
| Insurance | The master policy, flood coverage where required, and the policy you'll need on your unit (HO-6). |
| Delinquencies | How many owners are behind on dues. |
| Litigation | Lawsuits involving the association, especially over construction or safety. |
| Owners, renters and investors | The occupancy mix, short-term rentals, and whether one person or company owns many units. |
Warrantable vs. non-warrantable
A warrantable condo meets Fannie Mae or Freddie Mac rules, so it qualifies for a regular conventional loan. A non-warrantable condo doesn't, often because of a pending lawsuit, a high share of units owned by one investor, a large commercial space, hotel-style rentals or an unfinished project. Non-warrantable doesn't mean unfinanceable: it usually means a portfolio or non-QM loan, with a larger down payment and different pricing. Beycome Mortgage offers warrantable and select non-warrantable condo financing, including programs for some eligible condotels.
FHA and VA condos
- FHA: the building can be on HUD's approved condominium list. If it isn't, a lender can request a single-unit approval for your unit; the project needs at least five units, and HUD limits how many units can carry FHA loans.
- VA: the condo project generally needs to be accepted by VA. Ask us to check its status before you make an offer.
What to do before you sign
- Get the association documents early: budget, the latest reserve study or SIRS, the milestone inspection report if the building is old enough, recent board minutes and any special-assessment notices. Florida law gives resale condo buyers a short window to review the documents and cancel.
- Send them to us before your inspection period ends. We'll tell you which loan types the building can support.
- Price in dues and assessments. Use the mortgage calculator with the real HOA figure, not the listing estimate.
- Budget for HO-6 and flood insurance. Get a quote before you go under contract.
Buying through Beycome
If you're buying through the Beycome buyer program, eligible buyers may receive up to 2% back at closing.* Beycome Title can handle the closing in Florida. You are never required to use Beycome Mortgage or Beycome Title to get the buyer credit, and you're free to choose any lender or title company.
*Subject to available brokerage compensation, transaction eligibility, lender and loan-program limits, and applicable law. Not available in every transaction. Affiliated Business Arrangement Disclosure.
Common questions
Can I get a mortgage on a Florida condo that hasn't finished its milestone inspection?
It depends on the building's age, what the inspection or reserve study found, and the loan type. If a required inspection is overdue, or the report lists critical repairs that aren't done, many conventional and FHA loans aren't available yet. Send us the documents and we'll tell you what's possible.
What is a non-warrantable condo?
A condo that doesn't meet Fannie Mae or Freddie Mac rules, often because of a lawsuit, high investor or single-owner concentration, commercial space or hotel-style rentals. It can still be financed with portfolio or non-QM loans, usually with a larger down payment.
How much do I need down for a condo in Florida?
For a warrantable condo, conventional loans can start at 3% down for eligible buyers, and FHA at 3.5% if the building qualifies. Non-warrantable loans usually need more money down. The right number depends on the building, the loan and your credit.
Does a special assessment affect my loan?
Yes. The lender looks at what it's for and how much it is. Large assessments for structural repairs can affect whether the building qualifies, and your share adds to your monthly costs or your cash at closing.
How do I check if a condo is FHA-approved?
Search HUD's condominium approval list by project name or ZIP code. If the building isn't listed, ask us about a single-unit approval.
Sources: Florida Statutes s. 553.899 (milestone inspections) and s. 718.112 (reserves, SIRS); Florida HB 913 (2025); Fannie Mae Selling Guide B4-2.1-03 and B4-2.2-02; HUD Handbook 4000.1 and HUD single-unit approval requirements (2025).
Educational content, not a commitment to lend. All loans are subject to credit approval, property eligibility and underwriting. Program rules are set by Fannie Mae, Freddie Mac, FHA, VA and state law, and change over time.