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:
- FHA – https://entp.hud.gov/idapp/html/condlook.cfm
- Fannie Mae – https://www.fanniemae.com/singlefamily/project-eligibility
- 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
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FLORIDA NON UNWARRANTABLE CONDO CONDO QUESTIONNAIRE ANSWER KEY FLORIDA CONDO QUESTIONNAIRE ANSWER KEY |
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| 1 | Project is: |
| Condo and PUD‘s are allowed. HOA certification not needed for a PUD | |
| 2 |
Unit is: Attached and Detached projects are allowed |
| 3 | Units are: |
| If Leasehold, project is ineligible | |
| 4 | Unit owners in control of HOA? |
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Developers or unit owners may be in control. If Developer is still in control, condo is considered new and requires a FNMA PERS approval |
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| 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 | |
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6a |
Is the project a legally phased project? If yes, is the project subject to additional phasing / annexation / add-ons? |
| Additional phasing and add–ons 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: |
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The date when first units were made available is used to determine if the project is selling at an acceptable rate |
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| 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 | |
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17 |
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 | |
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18 |
Is the unit part of a legally established condominium project, in which common areas are owned jointly by unit owners? |
| 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 | |
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20c |
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 | |
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20d |
Is the project a Continuing Care Retirement Community or Life Care Facility where residents sign long–term contracts for housing, medical, assisted-living, and other services? |
| If yes, project is ineligible | |
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21 |
If a unit is taken over in foreclosure or deed-in-lieu, is the lender responsible for delinquent HOA dues? |
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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 |
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| 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 | |
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24 |
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. | |
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31 |
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 | |
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32 |
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 |
