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Florida Condo Mortgage Financing Loans, Best Rates

What is a Warrantable Florida Condo Mortgage Loan? The term “Warrantable Condo” means a condominium complex that meets Fannie Mae’s condo requirements.

Florida Condo Mortgage Financing Loan Down Payment Requirements for a Warrantable Condo.

  • 3% Down Condo Mortgage Loans for First Time Home Buyers with a 620 credit score.
  • 5% Down Payment for Non-First Time Home Buyers.
  • 10% Down on Second Home Condos.
  • 10% Down on Jumbo Condo Loans.
  • 20% Down on a Non-Warrantable Condominium Loan.
  • 20% Down on an Investment Property Condo Loan.

There are several ways we get Florida Condo Mortgage Loans Approved.

  • First, we see if the condo association complex is listed on the Fannie Mae Approved Condo 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.

What is a Fannie Mae Condo Full Review?

The Fannie Mae full review simply requires that we review the condo associations budget and our condo questionnaire, it’s that simple. This process isn’t difficult 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 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 10% 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 25% 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.
  • For Investment properties ONLY, No more than 50% of the units can be investor-owned.

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

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 90% 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 10% 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 25% 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.

Fannie Mae limited review condo borrower requirements?

  • Primary residences require a 25% down payment.
  • Second homes require a 30% down payment.
  • Investment properties are not allowed.
  • Minimum Credit Score is 620.

How Does a Piggle back Second Mortgage help get Condo Loans Approved?

If a condo project requires that we do a limited review and you don’t want to put a 25% down payment on a primary residence purchase, you only need to put 10% down and we add a piggyback second mortgage for 15% of the sales price to meet the 25% down payment limited review requirements.

For second homes you simply put 30% down which allows us to meet the Fannie Mae limited review requirements and then we will add a 15% second mortgage after the closing so you end up with only putting 15% down.

Click Here to check today’s Condo Mortgage Rates

Why would a Florida Condo complex not be considered a Warrantable Condo?

  • The condo complex association doesn’t allocate 10% of their revenue to fund the condo association reserves account.
  • One person or entity owns more than 10% of the units.
  • Slip and fall Litigation or the developer is named as a party that relates to the safety, structural soundness or habitability.
  • The commercial space exceeds 25% of the total square footage of the project.
  • For investment purchases only, at least 50% of the current unit owners must be occupied as primary residences or second homes.

Florida Non-Warrantable Florida Condo Mortgage Loan Requirements

A non-warrantable condo 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.” Freddie Mac and Fannie Mae would consider a condo to be non-warrantable if the condominium has any of the following.

  • The condo association doesn’t allocate 10% of their revenue to fund the condo association reserves account.
  • One person or entity owns more than 10% of the units.
  • Slip and fall Litigation or the developer is named as a party that relates to the safety, structural soundness, habitability.
  • The commercial space exceeds 25% of the total square footage of the project.
  • For investment purchases only, at least 50% of the condo units must be occupied as primary residences and second homes.
  • The developer hasn’t completed the project.
  • They allow daily rentals and or have condotel or condo hotel type amenities such as a check-in desk.

Has your Florida Condo Mortgage Financing loan been Denied by a Lender Because?

  • The condo complex budget doesn’t have 10% reserves.
  • The mortgage lender is requiring 20% to 30% down payment.
  • The condo master Insurance policy has coinsurance.
  • They require 50% of the units to be owner-occupied and/or second homes.
  • They require the condo complex to have law and ordinance insurance.
  • The mortgage lender has classified it as a non-warrantable condo or a condo hotel.
  • You don’t have enough Credit Report tradelines.
  • First time home buyer.
  • Your Credit Scores are a little Too Low, not to worry we can do a Rapid Rescore.
  • Prior Foreclosure or Bankruptcy or Loan Modifications.
  • Prior Mortgage Late Payments.
  • Don’t have Enough Reserves.
  • Debt to Income Ratio is too High.

Not to worry our Loan Officers overcome these problems all the time, we know the Florida Mortgage Business and can Close Easy, Complex and Tough Deals. We do this by utilizing our “Outside The Box Thinking” to get you pre-qualified for the maximum loan amount possible while keeping your down payment and closing costs as low as possible. Don’t just take our word for it, check out our prior client reviews!

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Can you get a Florida Condo Mortgage loan when it’s not listed on the Fannie Mae Condo approved list?

Yes, you can!

Can you get condo financing if the condo complex association doesn’t have 10% budgeted to fund their reserves account?

 Yes, you can for primary residences and second homes! For primary residences, you have to put down 25% and on second homes you put down 30% which allows us to do a Fannie Mae limited review so we don’t need to worry about the condo Association budget or get a condo questionnaire completed. If you don’t have 25% or 30% to put down, don’t worry because we can do a second mortgage so that you only have to put 10% down for a primary residence and 15% for a second home purchase.

Can you get a condo loan on a non-warrantable Florida condo?

Yes, you can just because a Florida condominium is Non-Warrantable doesn’t mean you won’t be able to get a condo mortgage loan.

Can you get a Florida condo loan with less than 25% or 30% down payment?

Yes, you can.

Can you get an FHA condo loan on a Florida Condo Mortgage Loan with 3.5% down payment?

Yes, you can as long as the Florida condo is listed on the FHA Approved Condo List.

Can you get a VA condo loan on a Florida Condo Mortgage Loan with 0% down payment?

Yes, you can as long as the Florida condo is listed on the HUD Approved Condo List.

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