20% Down-Florida Non Warratable Condo Lenders

Florida Non Warratable Condo Lenders

Steps to determine if a Florida Condo is Warrantable or Non Warrantable

There is no 1 location that lists Florida warrantable or non-warrantable condo complexes or projects.  However, there are several steps that can be taken to determine the eligibility of a Florida condo assocation and include:

1. Ask the Florida property management company or the realtor selling agent if the complex is condo considered “Warrantable.”
2. See if the Florida condominium complex has met Warrantable Standards:

  1. FHA – https://entp.hud.gov/idapp/html/condlook.cfm
  2.  Fannie Mae – https://www.fanniemae.com/singlefamily/project-eligibility
  3.  VA – https://vip.vba.va.gov/portal/VBAH/VBAHome/condopudsearch

3. Have your Florida Mortgage lender provide you with a Condo Certification below also known as the Florida Condo Questionnaire to be completed by the HOA or Property Management Company.  Note that many HOA’s and Companies charge a fee to complete a Condo Questionnaire Certification.
Florida Non Warratable Condo Lenders Reserve Requirements
LTV’s > 80% or Condo’s less than 90% closed and sold or Foreign Nationals:

 HOA must have a reserve account > 10% of the annual budget
 < 15% of units can have delinquent HOA dues
 < 10% of HOA dues compared to budget can be delinquent
LTV’s 80% – 70%:

 HOA must have reserve account > 5% of the annual budget
 < 15% of units can have delinquent HOA dues
 < 10% of HOA dues compared to budget can be delinquent
LTV’s < 70%

 No reserve accounts required
 < 15% of units can have delinquent HOA dues
 < 10% of HOA dues compared to budget can be delinquent



1 Project is:
Condo and PUD‘s are allowed. HOA certification not needed for a PUD

Unit is:

Attached and Detached projects are  allowed

3 Units are:
If Leasehold, project is  ineligible
4 Unit owners in control of HOA?

Developers or unit owners may be in control. If Developer is still in control, condo is considered new and requires a

FNMA PERS approval

5a Are all units complete? Are all common elements and amenities with the subject phase complete?
All units, common areas, and recreational facilities  must be 100% complete for the subject phase




Is the project a legally phased project? If yes, is the project subject to additional phasing / annexation / add-ons?

Additional phasing and addons are allowed. Condo is considered new and requires PERS approval
7a Is the project a conversion of an existing building? If yes, was conversion a full gut-rehabilitation?
Condo conversions that are  at least 3 years  old are eligible
8 Project pre-sale and owner occupancy questions are for residential units only:


The date when first units were  made available  is used to determine if the project is selling at an acceptable rate

9a How many units are over 30 days delinquent? If units are delinquent, what is the balance owed?
If  more than 15%  of the total units or  10% of the total budget  are greater than 29 days delinquent, project is ineligible.
10a Total income budgeted this year, total reserves budgeted:
At least  10%  of the total budget should be allocated for reserves
11 Is project part of a “Master” or “Umbrella” Association?
If yes, additional information may be required for eligibility
12 Does any one person or entity own more than one unit?
No single entity may own  more than 10%  of the total units
13 Are there any pending or outstanding special assessments?
If yes, obtain details and determine the impact on all units and marketability
14 Is the HOA involved in any litigation, mediation, arbitration, or other dispute resolution process?
If yes, obtain details (attorney opinion letter) and determine risk. If litigation   affects the structure or marketability , the project in ineligible
15 Are there any adverse environmental factors affecting the project as a whole or as individual units?
If yes, the appraiser must address the impact on  value and marketability
16 Does the homeowners’ association have a reserve fund separate from the operating account?
At least 10%  of the total budget should be allocated for reserves




Do the project legal documents include any restrictions on sale which would limit the free transferability of title?

If yes, the only restrictions allowed are  age restrictions



Is the unit part of a legally established condominium project, in which common areas are owned jointly by unit


If no, project is  ineligible
19a Do unit owners have sole ownership & exclusive right to project facilities?
If no, project is  ineligible
19b Are any project facilities (parking, recreation facilities) leased to the HOA?
If yes, project is  ineligible
20a Does the project consist of manufactured housing units?
If yes, project is  ineligible
20b Are any units less than 400 square feet?


If yes, project is  ineligible



Are any of the units used for live-work” (e.g., the unit owner lives in a loft area and runs a business on the

ground floor)?

If yes, project is  ineligible



Is the project a Continuing Care Retirement Community or Life Care Facility where residents sign longterm

contracts for housing, medical, assisted-living, and other services?

If yes, project is  ineligible




If a unit is taken over in foreclosure or deed-in-lieu, is the lender responsible for delinquent HOA dues?


If yes, the mortgagee  may not be responsible for more than the greater of 6 months or the maximum amount permitted under applicable state law

22 Does the property operate as a resort hotel; renting units on a daily basis?
If yes, only allowed on a  case by case  basis with prior management review and approval
23 Is any part of the project used for commercial purposes?
If yes, only allowed on a  case by case  basis with prior management review and approval




Do the project legal documents or local zoning limit the amount of time the owners can live in their unit?

If yes, project is  ineligible
25 HOA is named insured on master insurance policy?
If no, project is  ineligible
26 Are common elements / limited common elements insured to 100% replacement cost?
If no, project is  ineligible
27 Are units or common improvements located in a flood zone?
If yes, flood insurance is  required
28 Is the HOA insured for general liability?
If no, project is  ineligible
29 Does the HOA provide hazard insurance coverage for the interior (walls-in) of the condominium unit?
If no, the borrower must obtain a  separate HO-6 policy
30 Is the HOA insured for Fidelity Bond?
Fidelity bond coverage is required for projects  over 20 units , must be $1 million per occurrence and must be at least  equal to the greater of 3 months HOA dues  or reserves or minimum required by state law.



Minimum number of days required for written notification to be given to HOA or insurance trustee before any

substantial changes or cancellation of the project coverage.

Minimum of  10 days  required



We certify that the right of first refusal does not adversely impact the rights of a mortgage or its assignee to

foreclose or take title to a condo unit pursuant to the remedies in the mortgage; accept a deed or assignment in lieu of foreclosure in the event of default by a mortgagor; and sell or lease a unit acquired by the mortgagee or assignee.

If no, project is  ineligible

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