Getting a Florida condo mortgage now depends as much on the building as on you. Since the state’s condo safety laws took effect, lenders look closely at inspection reports, reserves and repairs before they approve a loan. Here is what the rules require, how lenders use them, and what to ask before you make an offer.
How Florida Condo Laws Affect Your Mortgage
Florida passed new condo safety rules after the 2021 Surfside collapse. Two of them matter most to buyers: the milestone inspection and the structural integrity reserve study, often called a SIRS. Both create paper trails that lenders can read.
As a result, a building with unfinished structural repairs or low reserves can be hard to finance. On the other hand, a building with clean reports and funded reserves usually moves through approval with fewer questions.
What Is a Florida Condo Milestone Inspection?
A milestone inspection is a structural review done by a licensed engineer or architect. Under Florida Statutes section 553.899, it applies to condo buildings that are three habitable stories or taller. The key dates are:
- The first inspection is due by December 31 of the year the building turns 30.
- After that, the building needs a new inspection every 10 years.
- Local officials may require the first inspection at 25 years for buildings near salt water.
If the inspector finds signs of significant structural damage, a more detailed second phase follows. So buyers should ask for both phases if they exist.
What Is a Structural Integrity Reserve Study?
A SIRS estimates how much the association must save to repair or replace key building parts. These include the roof, the load-bearing structure and other major systems. Under section 718.112, associations with buildings three stories or taller must complete one at least every 10 years.
In short, the study shows whether reserves are on track. If they are not, owners may face higher monthly dues or a special assessment. Consequently, both affect what you can afford.
Why Lenders Care About Condo Repairs
Most conventional loans are sold to Fannie Mae or Freddie Mac. Fannie Mae will not buy loans in projects that need critical repairs, including material deficiencies and significant deferred maintenance. Therefore, an open repair item in an inspection report can block a conventional loan, even if your credit is strong.
Special assessments also matter. Lenders usually count your share of a special assessment payment in your debt-to-income ratio. So a large assessment can lower the amount you qualify for.
Your Florida Condo Mortgage Options If a Building Fails Review
A building that does not meet agency rules is called non-warrantable. You still have options:
- Non-warrantable condo loans: Portfolio and non-QM lenders can finance units that Fannie Mae and Freddie Mac will not. Down payments often start near 10% to 25%. See our non-warrantable condo loans page.
- FHA and VA loans: These work when the building is FHA- or VA-approved. Many older buildings are not on those lists, so check early.
- DSCR loans for investors: If you plan to rent the unit, a DSCR loan qualifies you on the rent instead of your income.
In addition, a building that finishes its repairs and rebuilds reserves can become eligible again. Timing your purchase around that can save you money.
Questions to Ask Before You Make an Offer
First, ask the seller or the association for these items early:
- The most recent milestone inspection report, including any second phase
- The latest structural integrity reserve study
- The current budget and reserve balances
- Any planned or current special assessments
- Any lawsuits involving the association
- The master insurance policy and its deductible
Then send the documents to your lender before your inspection period ends. That way, you learn whether the building qualifies while you can still walk away.
Get a Florida Condo Mortgage Review
We review condo buildings across Broward, Miami-Dade and Palm Beach counties every week. Send us the address, and we will tell you which loans the building qualifies for at no cost. Call (754) 289-0196 or visit our condo financing page to get started.
