You found the condo, the price works, and your income qualifies. Then the lender comes back with two words: non-warrantable. In Florida, this happens more often than anywhere else in the country, and it has little to do with you.
This page explains what non-warrantable means, why Florida buildings fail so often after the post-Surfside laws, and which loan programs still close on them.
What “warrantable” means
Fannie Mae and Freddie Mac buy most conventional mortgages. Before they buy a condo loan, the building itself must meet their project standards. A building that meets them is warrantable. A building that does not is non-warrantable, and no conventional loan can be sold on it.
The lender learns this from a condo questionnaire the association fills out, plus the budget, the insurance policies, and, in Florida, the structural reports. If the answers fail, the building fails, no matter how strong the buyer is.
Why a Florida building fails agency review
The common reasons, roughly in the order we see them in Florida:
Reserves and structural funding. Since 2022, Florida law requires condo buildings of three or more habitable stories to fund reserves for structural items identified in a Structural Integrity Reserve Study. Fannie Mae and Freddie Mac now ask directly about reserve funding, deferred maintenance, and unfunded repairs. A building that waived reserves for years, or has not completed its SIRS, is the single most common Florida failure.
Milestone inspection status. Florida Statute §553.899 requires a milestone structural inspection when a building of three or more habitable stories reaches 30 years (25 years if within three miles of the coast), then every ten years. A Phase 2 finding of substantial structural deterioration, or repairs that have not started, will stop an agency loan.
Special assessments and pending repairs. Large assessments for structural work, or repairs identified but not funded, trigger further review and often a decline.
Litigation. Construction-defect suits, structural claims, or disputes over safety issues can make a building ineligible while the case is open.
Insurance. Agency rules require adequate property coverage, and in Florida that means windstorm and, where applicable, flood coverage on the building. Underinsured buildings fail. Rising premiums have pushed some associations to reduce coverage, which creates this problem.
Investor and rental concentration. Too many units owned by investors, or a building that operates like a hotel with short-term rentals and a front desk, falls outside agency rules. Condotels in Miami Beach, Orlando, and the Panhandle are non-warrantable by design.
Single-entity ownership. One person or company owning too large a share of the units.
Commercial space. Ground-floor retail or offices above a certain share of the building.
Delinquent dues. Too many owners behind on association fees.
New construction. Buildings that have not sold or closed enough units yet.
Fannie Mae keeps a list of projects it has flagged as ineligible, and Florida makes up a large share of it. A building can also be non-warrantable simply because the association did not answer the questionnaire, which is common when a management company is overwhelmed.
The 2022–2026 laws behind this
After the Surfside collapse, Florida passed SB 4-D in 2022, refined it with SB 154 in 2023, and amended it again with HB 913, effective July 1, 2025. The parts that matter to a lender:
- Milestone inspections at 30 years (25 coastal) for buildings of three or more habitable stories, repeated every ten years, with Phase 1 and Phase 2 stages.
- Structural Integrity Reserve Studies every ten years, with reserves for structural items that can no longer be waived.
- SIRS deadline of December 31, 2025 for existing associations, or alongside a milestone inspection due by December 31, 2026.
- Reserve item threshold raised to $25,000 and indexed each year; the Florida DBPR set the 2026 figure at $25,675.
- A temporary pause allowing an association that has completed a milestone inspection to redirect reserve contributions toward required repairs for a limited period.
- Insurance appraisals on a set cycle so buildings carry adequate coverage.
For lenders, these laws created paper. Milestone reports and SIRS documents now exist for most buildings, and underwriters read them. A building that ignored the deadlines is easy to spot. See Florida condo financing after SB 4-D for the buyer-side view of the same laws.
The loan programs that close on non-warrantable condos
Non-warrantable does not mean unfinanceable. It means the loan cannot be sold to Fannie Mae or Freddie Mac, so a lender that keeps the loan, or sells it elsewhere, has to make it.
Portfolio lenders. Banks and credit unions that hold loans on their own books set their own condo rules. This is the traditional non-warrantable answer, including for jumbo-sized condo loans. See portfolio loans.
Non-QM condo programs. Wholesale non-QM lenders offer condo programs built for buildings that fail agency review, including bank statement and asset-based versions for self-employed and retired buyers. See non-QM loans.
DSCR loans for investors. If the unit is a rental, a DSCR lender qualifies on rent instead of your income, and many accept non-warrantable buildings and some condotels. See DSCR loans in Florida.
Jumbo portfolio programs. For higher-priced units in Brickell, Bal Harbour, Naples, or Palm Beach, portfolio jumbo lenders review the building on their own terms. See jumbo loans in Florida.
What changes on a non-warrantable loan: the lender usually wants more equity at closing, the pricing is higher than an agency loan, and the lender still reviews the building. “Non-warrantable” is not “no review.” Every lender on this list will still read the milestone report, the budget, the insurance declarations, and the litigation history. They are just willing to accept findings the agencies will not.
Some things remain hard to finance anywhere: a building with an open Phase 2 finding and no repair plan, a building that cannot get property insurance, or an association in active safety litigation.
Documents to gather before you apply
Get these from the seller, the listing agent, or the association early. Under Florida Statute §718.503, a resale buyer is entitled to the governing documents and a financial disclosure, and has a short window after receiving them to cancel the contract.
- Completed lender condo questionnaire
- Current budget and the most recent year-end financial statement
- Structural Integrity Reserve Study
- Milestone inspection report (Phase 1 and Phase 2 if performed)
- Insurance declarations for property, windstorm, flood, liability, and fidelity coverage
- Notice of any special assessment, approved or proposed
- Board meeting minutes for the past year
- Rental restrictions and any short-term rental policy
- Any litigation disclosure
- Estoppel certificate at contract stage
If the association cannot produce items 3 and 4, that is your answer about the building’s condition before any lender tells you.
How to protect yourself as a buyer
Ask about warrantability before you write the offer. A listing agent who has sold in the building recently usually knows. Your MLO can pull the questionnaire early.
Use the condo rider. The Florida Realtors/Florida Bar condominium rider and the statutory disclosure period give you a window to walk away after reviewing the documents. Do not waive it.
Get the insurance quote early. Both the building’s coverage and your own unit policy affect approval and your qualifying payment. See Florida homeowners insurance and your mortgage.
Price the building, not just the unit. A non-warrantable building narrows your future buyer pool too. That affects resale, and it should affect what you pay.
Sellers: why this matters to you
If your building is non-warrantable, most buyers using a conventional loan cannot buy your unit. Knowing that before you list lets you price for cash and portfolio buyers, and lets your agent point buyers to the programs above instead of losing them at the lender.
How MortgageQuote.com handles Florida condos
As a Florida mortgage brokerage, we work with agency lenders, portfolio lenders, non-QM lenders, and DSCR lenders. That matters on a condo because the first step is figuring out which category the building falls into, and the second is placing the loan with a lender that accepts it. Your MLO reviews the building documents before you spend money on an appraisal. See why use a mortgage broker.
Florida condo buyers
Find out which category your building falls into
Send us the address and the association documents you have. A licensed MLO will tell you whether the building is warrantable and which lenders will close on it.
Frequently asked questions
Is non-warrantable the same as a bad building?
No. Many well-run buildings are non-warrantable for reasons like rental concentration or commercial space. Others are non-warrantable because of real structural or financial problems. The documents tell you which.
Can a building become warrantable again?
Yes. Completing the SIRS, funding reserves, finishing milestone repairs, resolving litigation, or fixing insurance gaps can move a building back to eligible.
Does a non-warrantable loan take longer?
Usually a little, because the lender reviews more building documents. Starting the document request at contract signing keeps it on schedule.
Can I use an FHA or VA loan on a non-warrantable condo?
FHA and VA have their own project approval systems, separate from Fannie Mae and Freddie Mac. A building can be approved by one and not another. Ask your MLO to check each.
Can I refinance a condo that became non-warrantable after I bought it?
Yes, through the portfolio and non-QM programs above. This is common in Florida for owners whose buildings fell out of eligibility after the 2022 laws.
Related reading
Sources
- Florida Statutes §
- 553.899, mandatory structural inspections for condominium and cooperative buildings
- Florida Statutes §
- 718.112(2)(g), structural integrity reserve studies, and §
- 718.503, resale disclosure (plain-text citations)
- Florida House Bill 913 (2025), effective July 1, 2025
- Florida Department of Business and Professional Regulation, Division of Florida Condominiums, Timeshares, and Mobile Homes
- Fannie Mae Selling Guide, Chapter B4-2, Project Standards
This page is provided for general informational purposes. It is not legal, financial, or tax advice, and it is not a commitment to lend or an offer of any specific rate or term. Program availability, guidelines, and eligibility vary by lender and are subject to change without notice. All loans are subject to credit approval, property review, and applicable law. Equal Housing Opportunity.
