Buying a Miami Beach condo? One word can shape your financing, timeline, and resale options: warrantable. If you are hearing this term for the first time, you are not alone. Understanding it now can save you money and stress later. In this guide, you will learn what lenders look for, how local rules affect buildings, and how to line up financing with confidence. Let’s dive in.
Warrantable vs. non‑warrantable, in plain English
What “warrantable” means
A condo is considered warrantable when it meets the project standards that conventional lenders use, which are based on Fannie Mae and Freddie Mac guidelines. When a project passes, you usually have access to standard conventional loans with broader lender choice and lower down payments. You can review the core review framework in the Fannie Mae Selling Guide.
What “non‑warrantable” means
A non‑warrantable condo fails one or more of these eligibility tests. It can still be a perfectly fine home, but financing often shifts to portfolio or specialty products with higher rates and larger down payments. For an overview of how lenders finance these buildings, see this summary of non‑warrantable condo loan options.
Why it matters in Miami Beach
Most lenders underwrite against GSE standards, so warrantability directly affects buyer demand and time to close. Local factors like older buildings, new inspection and reserve rules, and higher insurance costs have increased scrutiny of projects across South Florida. Coverage and repair costs rose sharply after Surfside, which has real impacts on budgets, assessments, and lending decisions, as reported by the Associated Press.
What lenders check in a condo
Ownership and rentals
Lenders review owner concentration and rental use. For example, Fannie Mae flags projects where a single entity owns too many units, and high investor or short‑term rental use can also be a problem. See the list of ineligible project characteristics for common triggers.
Commercial space
Mixed‑use is fine up to a point. Fannie Mae expects the nonresidential share to stay within limits, with commercial space not exceeding 35% by square footage. Larger allocations can make a project ineligible. The same ineligible project guidance outlines these limits.
HOA financial health
Lenders review budgets, reserves, and delinquencies. In a Full Review, no more than 15% of units can be 60 days or more past due on assessments. Reserve funding and any special assessments are part of the Fannie Mae Full Review process.
Litigation, repairs, and project status
Active litigation tied to structural safety, critical deferred maintenance, or habitability is a frequent deal breaker. Partially completed projects or those still under developer control can also fail eligibility tests. These issues are outlined in Fannie Mae’s ineligible project criteria.
FHA and VA paths
Government programs follow their own approval rules. FHA maintains a public list and offers Single‑Unit Approval in some cases. Check the HUD condominium page. Veterans can search the VA list with tools referenced here: VA condo approval search.
Local rules that affect Miami Beach condos
40‑year recertification and 10‑year cycles
Miami‑Dade requires building recertification when a multi‑unit building reaches 40 years of age, then every 10 years after. These inspections and any required repairs can affect insurance, budgets, assessments, and lender decisions. See the county’s recertification program.
Structural integrity reserve studies and deadlines
Florida law now requires structural integrity reserve studies for buildings three stories or higher. Associations that existed before July 1, 2022 must complete the study by December 31, 2025, which may change budgets or trigger assessments. Review the statute at Florida Statutes 718.112.
Insurance and special assessments
Insurance premiums and reserve requirements increased after the 2021 collapse, and many associations are funding repairs or larger reserves. That can raise HOA fees or lead to special assessments, which lenders examine closely. The AP’s reporting on post‑Surfside insurance and costs provides helpful context.
How to check a building early
- Ask your lender to run an early condo project check and confirm whether they can finance the building if it is non‑warrantable. Many use Fannie Mae’s Condo Project Manager.
- Request the HOA packet: current budget, reserve study, insurance certificates, 12 months of meeting minutes, details on delinquencies and special assessments, and any pending litigation.
- Confirm whether the building is in a Miami‑Dade recertification cycle or has recent milestone inspections, then request reports and repair scopes. Use the county’s recertification page.
- If you plan to use FHA or VA, verify the building’s status first. Check the HUD condo page and the VA condo approval search.
- If the project looks non‑warrantable, collect quotes from two lenders that offer portfolio or specialty condo loans. This helps you compare rates, down payments, and timelines.
Financing paths for non‑warrantable condos
- Portfolio loans. Some banks keep these loans on their books, which allows case‑by‑case underwriting. Expect larger down payments and tighter credit standards. See an overview of non‑warrantable loan options.
- Specialty or non‑QM products. These can fit unique buildings but often come with higher rates and more documentation of your income and assets.
- Higher down payment conventional or jumbo. Certain lenders will finance with 20 to 30 percent down or more, along with strong reserves and credit.
- FHA or VA. If the building is approved, these programs can be a path forward. Use the HUD condo page and the VA search tool.
Common delays and deal killers
- Lender condo certification and project review. Automated tools can flag projects late in the process. Freddie Mac’s Condo Project Advisor can return a Not Eligible status, which prevents loan sale to Freddie Mac. Learn how these flags work in the Freddie Mac Condo Project Advisor FAQ.
- Insurance shortfalls or unusual endorsements. Lenders verify wind, hurricane, and flood coverage, deductibles, and carrier restrictions.
- Evidence of critical repairs or litigation. If a project shows structural or habitability issues, GSE eligibility is often off the table, which forces alternative financing.
Tips for sellers in tighter‑to‑finance buildings
- Gather the full HOA document set before you list, including budgets, reserve studies, insurance, and meeting minutes. Buyers and lenders will ask for it.
- Be upfront about assessments, recertification work, and timelines. Clear expectations help you avoid cancellations and keep days on market lower.
- Partner with a buyer’s lender early. Confirm which financing paths are available for your building, then tailor terms and timelines accordingly.
- Price and terms should reflect financing reality. A slightly longer closing or a credit for upcoming assessments can widen your buyer pool.
Final thoughts
In Miami Beach, a condo’s warrantability can make or break the deal. When you check the project early, align your financing to the building, and plan for local inspection and reserve requirements, you put yourself in position to close smoothly. If you would like a financially rigorous read on a specific building, connect with Scott Shuffield for tailored guidance.
FAQs
How do I tell if a Miami Beach condo is warrantable before I write an offer?
- Ask your lender to run a condo project check and, if available, use Fannie Mae’s Condo Project Manager; if you plan FHA or VA, verify status on the HUD and VA resources first.
Can I still get a mortgage if the building is non‑warrantable in Miami Beach?
- Often yes, through portfolio or specialty loans, but expect higher down payments and rates; see this overview of non‑warrantable loan options.
Do Miami Beach condo sellers need to disclose that a building is non‑warrantable?
- Rules vary by jurisdiction, but you should be prepared to share HOA documents and known financing limitations since lenders will request items outlined in the Fannie Mae Full Review.
What local resources can help me evaluate an older Miami Beach building?
- Start with the Miami‑Dade recertification program for inspection timelines, then check HUD or VA tools if you need program‑specific approvals.
