Florida Condo Loan

What is a Florida Condo Loan? Otherwise known as a Florida Warrantable Condo Loan. The term “Warrantable Condo” means a Condominium Complex that meets Freddie Mac or Fannie Mae’s Condo Requirements. A non-warrantable condo is a condominium property in which the loan is not eligible to be sold to Freddie Mac or Fannie Mae, and as such, mortgage financing for this type of property is considered by most banks to be more “risky.”

Florida Condo Down Payment Requirements

  • 3% Down Down Payment for First Time Home Buyers.
  • 3.5% Down on FHA Condo Loans.
  • 5% Down Payment for Non-First Time Home Buyers.
  • 10% Down on Second Home Condo Loans.
  • 5% Down on Jumbo Condo Loans.
  • 20% Down on a Non-Warrantable Condominium Loan.
  • 15% Down on an Investment Property Condo Loan.

There are several ways we get a Florida Condo Loan Approved.

  • First, we see if the condo association complex is listed on the Approved Lists
  • If the condo project isn’t listed on the FHA list we can do an FHA Spot Approval
  • If the condo project isn’t listed on the VA list, VA allows us to close loans on all condo projects listed on the FHA list.
  • If the condo project isn’t listed on the Fannie Mae approved list, then we will do a Fannie Mae full review.
  • If the condo project doesn’t meet the full review requirements, then we will do a Fannie Mae limited review.
  • If the Condo Project doesn’t meet the full review requirements, then we can do a piggie back second mortgage to meet the limited review down payment requirements.

Comparing Current Florida Condo Mortgage Rates

Finding the lowest Florida condo mortgage rates is very important, that’s why we’ve already searched them for you, getting the lowest rate possible could save you hundreds of dollars a year and thousands of dollars over the life of your loan. Yes, having us find you the best mortgage rates is a big deal.

Current Florida Condo Mortgage Rates

When you “CLICK HERE” you’ll instantly see today’s lowest Florida Condo mortgage rates. If you see an interest rate you like, you can click to head straight to get your custom rate quote.

Our reviews speak for themselves.

What is a Fannie Mae Condo Full Review?

The Fannie Mae full review requires that we review the condo associations budget and our condo questionnaire; it’s that simple. This process isn’t complicated, and we get this done within the first couple of days from the time you get an executed purchase contract.

Fannie Mae Full Review Condo Requirements

Below is a list of the most common items that can cause a Fannie Mae & Freddie Mac Full Condo Project Review to be denied.

  • The current year approved budget must show that 10% of the operating expenses are to be allocated to a reserve account.
  • A reserve study in lieu of 10% reserves allocated from the current year budget may be considered if prepared within the past 24 months by an independent 3rd party with expertise in Condominium Project Reserves.
  • No more than 15% of the unit owners may be more than 60 days delinquent on their monthly HOA dues or special assessments.
  • No one person or entity can own more than 20% of the total units.
    • Small 1-4 unit condo projects are eligible as long as no individual owns more than 1 unit.
    • 5-20 unit condo projects are eligible as long as no individual owns more than 2 units.
  • Commercial space can’t exceed 35% of the total project.
  • Litigation against the developer or contractor that is named as a party that relates to the safety, structural soundness, habitability is not allowed.
    • Pending litigation “litigation concerning localized damage to a unit in the project that does not impact the overall safety, structural soundness, habitability, or functional use of the project” is acceptable
    • Pending litigation when the amount of the claim is known is acceptable.
  • Investment properties ONLY, No more than 51% of the units can be investor-owned.

What is a Fannie Mae Limited Review for Florida Condo Loan?

A Fannie Mae limited review only requires that the project meet a few requirements listed below, Fannie Mae allows this because the down payment requirement is higher.

  • The developer has transferred control of the association to the individual unit owners.
  • The project must be 100% complete, with no additional phases to be built.
  • At least 75% of the total units are sold and closed.
  • Must not be a condotel or have condo-hotel type amenities such as a rental desk.
  • No one entity can own more than 75% of the units.
    • Small 1-4 unit condo projects are eligible as long as no individual owns more than 1 unit.
    • 5-20 unit condo projects are eligible as long as no individual owns more than 2 units.
  • Commercial space can’t exceed 35% of the total project.
  • Litigation against the developer or contractor that is named as a party that relates to the safety, structural soundness, habitability is not allowed.
    • Pending litigation “litigation concerning localized damage to a unit in the project that does not impact the overall safety, structural soundness, habitability, or functional use of the project” is acceptable
    • Pending litigation when the amount of the claim is known is acceptable.

A Limited review is much easier to get approved than a Fannie Mae Full Review approval because the condo complex questionnaire and condominium association budget isn’t required.

FHA Florida Condo Loan Spot Approval  Requirements

  • The project must have at least five units.
  • 10 or more units, up to 10% may be FHA-Insured.
  • Less than 10 units, up to two FHA-Insured units.
  • At least 50% owner-occupancy.
  • HOA Budget 10% reserve requirement (or amount supported by reserve study).
  • Maximum of 35% commercial space.
  • Maximum 10% individual ownership.
  • Manufactured homes, gut rehab or new construction is not eligible.
  • No more than 15% of units are 60 days delinquent.

Expert advice at your fingertips

Our home loan experts are available 7 days a week to answer all your home loan questions. We don’t keep bankers hours…. we understand that you have busy schedules, that’s why we’re available nights and weekends.

Eddie Hoskins Founder & CEO

“My mission is to give our clients their most enjoyable home buying experience, I’m focused on making sure there process is simple.”

Why should you choose us for your home loan?

We work for you & not the bank, we offer wholesale mortgage rates which are lower than retail rates not to mention, we offer a wide variety of loan options so your not stuck with one set of restrictive underwriting guidelines.

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We have a credit score analyzing tool that can provide us with options to improve your credit scores quickly through a rapid credit rescore that usually takes 48 hours.

“We Think Outside The Box”

Our “Outside The Box Thinking”  gets home loans approved and closed every day! From one-year business tax returns loans to 55% debt to income ratio approvals, we close them all.

We’ve streamlined the mortgage process, close in 30 days or less.

From application to closing, all from the palm of your hand.

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