A conventional decline
Identify the specific project condition instead of repeating applications with the same obstacle.
Non-warrantable condo loans in Florida.
Buying a condo, refinancing one, or facing a lender decline? Bennett Capital Partners Mortgage Brokers helps identify the building issue, compare eligible non-warrantable condo financing, and prepare the records a lender needs to review your loan.
On the quote form, use “Property address or other details” to add the building address and any lender decline reason. We will discuss the project with you afterward.
Philip Bennett, MBAFounder · NMLS 1098318
What is a non-warrantable condo?
A non-warrantable condo is a unit in a project that does not meet one or more applicable Fannie Mae or Freddie Mac eligibility requirements for conventional financing. The label does not explain the underlying issue. Some projects may fit portfolio or specialty programs; others need a problem corrected before financing is possible.
A warrantable condo meets the applicable agency project requirements; a non-warrantable condo falls outside at least one of them. If the concern is resolved, compare warrantable condo financing before paying for a specialty option.
Before you make an offer
Ask about financing before committing to a building. Start with its address and any listing note about loan restrictions.
A refinance request
Evaluate current project records and equity under the proposed new loan.
Non-warrantable condo loan requirements.
The lender reviews your ability to repay and the condominium project separately. A strong credit profile helps with the loan, but the building must also meet that program's requirements.
Down payment or equity
Confirm the maximum loan-to-value ratio for your property, occupancy and loan purpose. Cash-out refinancing may have different limits from a purchase.
Credit and cash reserves
Your credit score, payment history, debts and funds remaining after closing affect eligibility. Borrower reserves are separate from the association's reserve fund.
Income and intended use
Establish whether you will live in the unit, use it as a second home or rent it out. Then compare an eligible income-documentation method.
Project eligibility
Review the actual exception, current insurance, association finances and unresolved conditions. A larger down payment does not override every project restriction.
There is no single minimum credit score, down payment or reserve requirement for every non-warrantable condo loan. Request written terms for the program that accepts your complete scenario.
Compare non-warrantable condo loan options.
Portfolio financing
A portfolio lender may consider an eligible project outside agency rules. Standard income records can still be used.
Request a Condo ReviewCondotel financing
Fannie Mae excludes projects managed or operated as hotels. Specialty condotel programs review the hotel and rental structure separately.
Explore this routeBank statement loans
For eligible self-employed borrowers, bank statements may support income qualification.
Explore this routeInvestor financing
For eligible investment properties, DSCR compares rental income with the housing expense.
Explore this routeChoose a loan that fits both you and the building.
Portfolio financing describes a lender holding a loan under its own guidelines. Bank statement and DSCR describe ways a borrower or rental property may qualify.
How non-warrantable condo lenders review your application
| Your situation | Route to discuss | What still needs approval |
|---|---|---|
| Income documented with tax returns or employment records | Full-documentation specialty or portfolio financing | Income, debts, assets, occupancy and the project exception. |
| Self-employed with business deposits | Bank statement loans | Eligible deposits, business expenses, reserves and the condominium project. |
| Buying or refinancing a rental unit | DSCR investor financing | Rental income, housing expense, permitted rental use and project eligibility. |
| Income or assets documented outside the U.S. | Foreign national mortgage review | Residency documentation, acceptable financial records and the same project requirements. |
Before assuming specialty financing is necessary, ask the lender whether another agency route fits. FHA project approval or eligible Single-Unit Approval may offer a route for an eligible borrower. Eligible VA borrowers can consider a unit in a VA-approved project. Neither route overrides its own borrower and property requirements.
A non-QM loan is not automatically a non-warrantable condo loan. Likewise, a jumbo loan amount does not establish that the lender accepts the project. Ask for the specific project exception to be reviewed before relying on a program label or preliminary quote.
What makes a condo non-warrantable?
Start with the lender's written explanation. A missing document, a lender-specific policy and an agency project restriction can lead to different next steps. Ask which requirement was not met and what evidence the reviewer used.
| Issue to investigate | Records to request | What the review should establish |
|---|---|---|
| Missing questionnaire or records | List of missing items and the association contact | Complete the file before treating the building as ineligible. |
| Master insurance concerns | Full policy, declarations and endorsements; per-unit and named-storm deductibles; replacement-cost evidence; renewal date | For Fannie Mae loans, master coverage must equal at least 100% of estimated replacement cost. Each per-occurrence deductible, including windstorm, is capped at 5% of master coverage; the per-unit cap is $50,000. Specialty lenders apply their own requirements. Master-policy requirements. |
| Reserve funding or assessments | Current budget, reserve study and assessment notice | Establish the funding plan, payment obligation and any related repair issue. |
| Litigation | Current case description and appropriate legal documentation | Under Fannie Mae rules, project litigation affecting safety, structural soundness, habitability or functional use makes the project ineligible. Other pending association litigation needs review against the documented minor-litigation exceptions. |
| Repairs or structural concerns | Inspection report, repair scope and completion evidence | Under Fannie Mae rules, unaddressed critical repairs make the project ineligible until the work is completed and documented. |
| Ownership or commercial space | Unit ownership schedule and project-use records | Check the applicable threshold and any available program exception. |
| Recreational leases or mandatory memberships | Governing documents, amenity ownership, lease or membership agreement and fee schedule | Fannie Mae excludes recreational leases and required memberships paid to an outside amenity owner. HOA-owned amenities and certain shared-HOA arrangements are treated differently. Have the lender review the actual agreement. |
| Hotel-style operation | Rental agreement, management contract and occupancy restrictions | Use the condotel financing review for the hotel and rental structure. |
New construction, commercial space or a lawsuit should prompt a specific review, not an automatic conclusion. A prior loan in the same building also does not guarantee approval today.
Roof coverage and litigation rules: details
An HOA deductible buy-back policy may meet the deductible limit if it satisfies the other insurance requirements.
Fannie Mae requires roofs to be insured, but permits settlement terms other than replacement cost for the roof. Confirm the actual policy terms with the insurance professional and lender. For insurance details, see Fannie Mae's master-policy requirements.
A minor litigation exception may include a qualifying non-monetary dispute or a claim the insurer is defending and covering. The lender must document the exception under Fannie Mae's project criteria.
Ask about arbitration or mediation reasonably expected to become a lawsuit; Fannie Mae applies its litigation rules to that pre-litigation activity. An association suing over construction defects does not qualify as a minor matter unless the affected work is already corrected and failure to recover the money would not materially harm the association.
2026 agency changes that can affect a decline
August 3, 2026: review and reserves
Applications dated August 3, 2026 or later use Full Review or an applicable waiver instead of Limited Review. Under reserve-study flexibility, the budget must include the study's highest recommended allocation; baseline funding is not accepted.
Small projects
A review waiver can cover projects with up to ten units, subject to conditions. Projects with five to ten units cannot belong to a master association or larger development.
Florida and investors
New or newly converted attached projects in Florida can use lender-delegated Full Review without separate PERS submission. The 50% investment-property concentration limit was retired for established projects under Full Review on investor loans. Single-entity ownership rules still apply.
January 4, 2027: higher reserve minimum
For applications dated January 4, 2027 or later, Full Review's minimum reserve allocation rises from 10% to 15% of annual budgeted assessment income. The qualifying reserve-study alternative above remains available.
These are Fannie Mae standards, not promises of specialty-loan approval. A prior decline may warrant another review. Read Lender Letter LL-2026-03 and our condo guideline guide for context.
Florida condo inspections, reserves and insurance.
For a Florida condominium purchase or refinance, ask the association for current records and the status of any required work. A milestone inspection and a structural integrity reserve study (SIRS) serve different purposes. Florida's SIRS requirement covers residential condominium associations with buildings three or more habitable stories high. Milestone inspections also depend on the building's age and applicable local requirements.
Milestone inspection
Assesses the building for substantial structural deterioration. Request the report, any required follow-up and documentation of completed repairs.
Structural integrity reserve study
Evaluates specified building components and the funds needed for future repair or replacement. Read the funding plan alongside the adopted budget.
Master insurance
Ask for the current policy package and relevant endorsements. Have the lender identify the coverage, deductible or other condition affecting its review.
Special assessments
Request the purpose, amount, payment schedule and remaining balance. If an assessment funds repairs, ask for the work's current status. Under Fannie Mae rules, an assessment tied to an unresolved critical repair makes the project ineligible.
Florida DBPR explains milestone inspections and structural integrity reserve studies. Confirm the requirements and timing that apply to the particular building with its association and appropriate professionals.
A Florida-compliant reserve plan is not automatically acceptable for agency financing. DBPR describes a baseline funding plan for SIRS, while Fannie Mae excludes baseline funding when a lender relies on reserve-study flexibility. Ask the lender to compare the adopted budget and study with the applicable agency requirements.
Two declines, two different next steps.
Missing questionnaire: obtain the answers and let the lender complete its review. The missing document alone does not establish a structural problem.
Unresolved critical repairs: obtain the findings and repair status. Under Fannie Mae's ineligible-project criteria, a project with unaddressed critical repairs is ineligible until the required work is completed and documented. A failed mandatory inspection concerning structural safety, soundness or habitability is a critical-repair condition. Do not assume a specialty lender can disregard the condition.
Illustrative scenarios, not actual transactions or approval predictions. Financing approval does not replace a building inspection.
Buying or refinancing a non-warrantable condo.
For a purchase, ask about the project before committing to a contract or paying nonrefundable costs. If you already have a deadline, share it with the lender along with the building's records.
Should you buy a non-warrantable condo?
- Compare total costs. Weigh the price against financing costs, association obligations and unresolved building conditions. Assessments or more expensive financing can outweigh a lower price.
- Consider resale. Ask how the current restriction could affect a future buyer’s financing options.
- Plan for today’s loan. Do not assume the project will become warrantable or that refinancing will be available later.
- Review before committing. Discuss inspection findings and contract protections with the appropriate professionals.
Refinancing a non-warrantable condo
The lender reviews the building again; acceptance when you purchased does not carry over. Compare the existing loan's payoff and any prepayment charge with the new loan's closing costs, term and payment. For cash-out, confirm the program's equity requirements and the proceeds remaining after liens, charges and any assessment payment.
If the project now meets agency requirements, compare warrantable condo financing before choosing a specialty refinance. Do not assume a future refinance will be available to make today's loan affordable.
| Transaction | Additional facts to establish |
|---|---|
| Purchase | Before an offer: financing restrictions and document access. Under contract: deadlines, assessment allocation and any lender decline reason. |
| Rate-and-term refinance | Current payoff, present project condition and the cost of replacing the existing loan. |
| Cash-out refinance | Net proceeds after liens and charges, current valuation, ownership history and permitted use of funds. |
Non-warrantable condo rates and ownership costs.
Non-warrantable condo mortgage rates can differ from conventional pricing. The project exception, credit profile, loan amount, equity, occupancy and documentation all affect the available terms. Compare current written offers for the same scenario.
| Compare | Questions to resolve |
|---|---|
| Rate and loan structure | Is the rate fixed or adjustable? Compare the APR when disclosed, amortization, maturity and any interest-only terms. |
| Project approval and rate-lock timing | Has this building been reviewed, or is the offer conditional on project approval? Does the lock cover expected association-document and underwriting time? Who pays extension costs if records arrive late, and what changes could trigger repricing? |
| Fees and cash to close | What are the origination charges, points, lender credits, appraisal and project-review charges? Which costs are refundable? |
| Required funds after closing | How much must remain in reserves after your down payment, closing costs and any assessment payment? |
| Prepayment and refinancing | Is there a prepayment charge or other exit cost? Do not base affordability on an unapproved future refinance. |
For a consumer mortgage, compare the Loan Estimates when provided. The CFPB's loan-offer comparison guide explains how to review costs. Business-purpose financing may use different disclosures; request an itemized written comparison.
The mortgage is only part of the monthly cost.
Illustrative ownership budget. Replace each figure with the unit's actual expenses.
- Association dues
- $850
- Property taxes
- $500
- Unit-owner insurance
- $175
- Assessment installment
- $250
- Monthly subtotal
- $1,775
Before mortgage principal and interest, utilities, maintenance and any additional insurance. This is an example, not a loan payment or quote. Avoid counting taxes or insurance twice if they are already included in your quoted payment.
Ask who pays an outstanding assessment at closing and what continues afterward.
Under Fannie Mae's unit-owner insurance rules, required coverage must be sufficient for uncovered unit improvements and at least equal to any master-policy per-unit deductible. Ask your insurance professional how this affects your premium.
For an investment condo, also allow for vacancy, management and operating expenses. Gross rent is not the same as spendable cash.
How your condo financing review works.
Start with our mortgage quote form to share the loan purpose, property type and financing amount. In “Property address or other details,” add the building address and any lender decline reason. A complete association package is not required for this first inquiry.
Have ready for the conversation
- Building address and unit number
- Purchase or refinance goal and intended use
- Any lender decline reason or financing restriction
- Contract or refinance deadline, if applicable
Records the lender may request later
- Association contact, questionnaire and governing records
- Budget, reserve study and master insurance package
- Relevant assessments, inspections, repairs or litigation records
- Borrower income, credit, assets and mortgage information
Copy this request for your association or property manager
Replace the brackets before sending. Ask the lender which records are needed before ordering paid reports.
I am reviewing financing for [building address and unit]. Please confirm the contact, fee and turnaround for a lender condo questionnaire.
Please advise how I can obtain:
- The current budget and reserve study
- Master insurance policy and endorsements
- Applicable inspection reports
- Notices about assessments or unfinished repairs
Please also identify any litigation or anticipated legal proceedings, rental restrictions, and mandatory third-party amenity memberships or recreational leases.
If records are unavailable, please identify the missing items and expected availability.
This request starts document collection. It does not replace the lender’s questionnaire or project approval.
- 01
Identify the issue
Separate a missing record from a project or lender-policy restriction.
- 02
Gather the evidence
Collect the documents needed to understand the actual condition.
- 03
Compare available paths
Review eligible programs and their complete costs and requirements.
- 04
Coordinate underwriting
Track project questions, borrower conditions, appraisal, and closing.
We compare available lending sources and coordinate the submission. The selected lender makes the credit and project decision.
Request a Condo ReviewYour mortgage broker
Philip Bennett, MBAFounder, Bennett Capital Partners Mortgage BrokersNMLS 1098318 · Miami, Florida
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Continue with related financing guides.
For a deeper explanation of the topic, read our non-warrantable condo financing guide, then explore the related questions below.
Fannie Mae Condo Guidelines 2026: New 15% Reserve & Review Rules
Explore project review changes and confirm the rules that apply to your transaction.
Read guide
How Much Is A Down Payment On A Condo? A Florida 2026 Guide
Understand the factors behind equity requirements and funds needed for closing.
Read guide
Condotel Financing in Florida: Loan Requirements & Costs
Learn how hotel operations and rental arrangements affect the financing review.
Read guideExplore related loan programs.
Condo Mortgage Loans
Start with the borrower, unit and project review to identify the appropriate financing channel.
View the briefWarrantable Condo Mortgages
Agency-eligible condo financing when the project and loan meet the applicable requirements.
View the briefCondotel Loans
Review hotel-style operation, rental arrangements and property-specific financing requirements.
View the briefNon-QM Loans
A broader category for qualified scenarios outside standard agency or qualified-mortgage channels.
View the briefAll loan programs
Browse financing by the property, income documentation and transaction.
Open the directoryNon-warrantable condo loans FAQ
Does non-warrantable mean the condo cannot be financed?
No. Some projects qualify through portfolio or specialty financing. Others need missing information or a condition corrected. The specific reason for the classification determines the next step.
Is every condo with litigation non-warrantable?
No blanket conclusion should be drawn from the word litigation. The nature of the dispute and the applicable program requirements matter. The lender may request legal information to determine whether the project is acceptable.
Can a higher down payment overcome every project issue?
No. More equity may improve some financing options, but it does not automatically make an unsafe, uninsurable, or otherwise prohibited project eligible.
Can I buy a non-warrantable condo as my primary residence?
Some specialty programs permit an eligible primary residence. Others are limited to specific uses. Borrower, occupancy, and project requirements must all be met under the same program.
Can I use a DSCR loan for a non-warrantable condo?
Potentially, if the selected investor program accepts the project and rental use. Rental income qualification alone does not establish condo eligibility. A DSCR investor loan is not for a home you intend to occupy.
Are non-warrantable condo rates higher?
They can be, but pricing depends on the complete transaction. Compare rate, fees, required equity, reserves, payment structure, and prepayment provisions using current written terms.
Can a condo become warrantable later?
Yes, circumstances can change. Required repairs, ownership changes, resolved disputes, or complete documentation may affect eligibility. A new lender review is needed; a future refinance should not be assumed.
Is a condotel the same as a non-warrantable condo?
A condotel is a project operating with hotel-style characteristics. It can fall outside conventional project rules, but it needs a specific review of the hotel and rental structure. Other non-warrantable condos have unrelated issues.
Does one lender declining the condo rule out every conventional loan?
Not necessarily. A decline may reflect an incomplete file, a lender-specific policy or an agency project requirement. Ask for the exact reason. Another review still must establish eligibility and cannot disregard a material property or safety issue.
Bennett Capital Partners Mortgage Brokers, NMLS 2046862. Not a commitment to lend. All loans are subject to credit and property approval. Programs, terms, and eligibility are subject to change and to borrower and property qualification.