Florida Condo, Condotel & Non-Warrantable Loans for Investors
Program and regulatory figures verified July 24, 2026. Details change; confirm your scenario with us.
Florida's condo market carries rules no other state has, and they can either stop a purchase or open a lane no agency lender will touch. The difference is knowing which building you're in, and which loan answers it.
What is a milestone inspection, and will it stop me buying a Florida condo?
A milestone inspection is a post-Surfside structural safety review required by §553.899. It applies to condominium and cooperative buildings three or more habitable stories tall: a structural inspection at 30 years of age, with a 25-year local option for buildings near the coast, then a recurring inspection every 10 years. A licensed architect or engineer does the visual phase, and a deeper phase follows only if substantial deterioration is found. The key exclusion for many investors: 1–4 family dwellings are excluded, so single-family, duplex, triplex, and fourplex buyers are unaffected. It won't stop a purchase by itself, but an inspection that flags unaddressed critical repairs changes both the association's finances and the loan.
Why are Florida condo HOA fees exploding, and does it affect my loan?
Because of the Structural Integrity Reserve Study, or SIRS. Post-Surfside law requires residential condos three or more stories to complete a SIRS every 10 years and to fund reserves for the roof, structure, waterproofing, exterior painting, foundation, plumbing, electrical, and windows, with the ability to waive those reserves sharply curtailed. Associations that underfunded for years are now catching up, and dues and special assessments have jumped. That matters directly to a DSCR file: association dues sit inside PITIA, so a fee spike lowers the ratio the same way a tax or insurance increase would. We underwrite the current dues and any pending special assessment, not last year's number.
Can I finance a condotel or non-warrantable condo in Florida?
Yes, and this is where our product lane matters most. Fannie Mae and Freddie Mac apply stricter condo-project review since Surfside, and a project with significant deferred maintenance or a thin budget can be agency-ineligible. Agency-ineligible is not unfinanceable: DSCR and non-QM programs lend on non-warrantable condos, commonly at 25% down (around 75% LTV), and on condotels, commonly 25–30% down, where agency financing generally won't go at all. Miami, Panama City Beach, and Destin condotel stock is a big part of Florida's investor demand, and it needs a lender who prices these deliberately. Insurance and dues drive the ratio here even more than usual: the insurance guide covers the premium side.
No pressure, no obligation, and no salesy follow-up: a 20-minute call with our team, real numbers, and a straight answer on whether the deal pencils.
Frequently asked questions
What is a milestone inspection and will it stop me buying a Florida condo?
It's a post-Surfside structural review under §553.899 for condo buildings three or more habitable stories: at 30 years (25 on the coast by local option), then every 10 years. 1–4 family dwellings are excluded. It won't block a purchase by itself, but flagged critical repairs affect the association's budget and the loan's eligibility.
Why are Florida condo HOA fees rising so fast?
The Structural Integrity Reserve Study requires condos three or more stories to fund reserves for structural components on a 10-year cycle, with waivers curtailed. Associations that underfunded are catching up through higher dues and special assessments. Because dues sit inside PITIA, those increases lower your DSCR, so we underwrite current dues and pending assessments.
Can I finance a condotel or non-warrantable condo in Florida?
Yes, on DSCR-style and non-QM programs: non-warrantable condos commonly want 25% down, and condotels commonly want 25–30%. Fannie and Freddie generally won't touch condotels and often reject projects with deferred maintenance, but agency-ineligible is not unfinanceable. That gap is exactly what these programs are for.
Does an agency-ineligible condo mean I can't get a loan?
No. Stricter agency condo review since Surfside makes many Florida projects ineligible for Fannie or Freddie, but DSCR and non-QM lenders still lend on non-warrantable condos and condotels. The building's milestone and reserve documentation drives eligibility; we review it and place the file on a program that fits.
Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content, not a loan commitment and not legal, tax, or insurance advice. City and county STR rules, tax figures, and insurance requirements change; verify current requirements with the city, your association, your CPA, or a Florida real estate attorney before you buy. Loans are subject to buyer and property qualification.