Florida Condo Financing Mortgage Loans, Best Condo Mortgage Loan Rates

Florida Condo Financing Down Payment Requirements for a Warrantable Condo

  • 1% Down Payment Condo Financing Loans with 2% Equity Boost. You simply put 1% down and the Lender will contribute up to 2% or $5,000 (whichever is less) towards your down payment. This program is only available for first time home buyers, which means at least one of the borrowers can not have owned any properties within the last 3 years. A 720 minimum credit score is required and the sellers can contribute up to 3% of the sales price towards your closing cost so you could buy your home and only bring the 1% of the sales price to the closing table.This program does have maximum income limitations in some areas of Florida.
  • 3% Down Condo Mortgage Loans for First Time Home Buyers. This is a great option if you don't have a 720 credit score because you only need a 620 credit score or higher to qualify and the sellers can contribute up to 3% of the sales price towards your closing cost so you could buy your home and only bring 3% of the sales price to the closing table.This program does have maximum income limitations in some areas of Florida.
  • 5% Down Payment on First Time Home Buyers & Non-First Time Home Buyers. No income restrictions and only requires a 620 or higher credit score.
  • 10% Down on Florida Second Home Condo Financing Loans. 
  • 20% Down on Florida Non-Warrantable Condominium Loans.
  • 20% Down on Florida Investment Property Condo Loans.
  • 3.5% Down Payment on Florida FHA Loans. The condo complex must be on the FHA Approved Condo List. Please be sure to enter the State, county, and select Approved in the status box. The list is very small because the builder/developer is the one who usually gets the condo project FHA approved and when the construction of the project has been completed the condo association doesn't keep the FHA approval in force due to the fairly rigid requirements imposed by FHA and all of the paperwork that is required.
  • 0% Down Payment on Florida VA Condo Loans. The condo complex must be on the HUD Approved List. The list is very small because VA uses the FHA approved condo list. 

What is a Warrantable Condo and will qualify for Conventional Condo Financing?

There are several ways that we get a condo complex approved for condo mortgage loans, the first one is to see if the condo association complex is listed on the Fannie Mae Approved Condo List. If your condo complex name is on the list and it doesn't list the words "entire project" under the Phase/Bldg# column be sure to check that the building number and or condo project phase of the condo unit you are wanting want to purchase or refinance is listed. Becuase not all condo projects phases and buildings have been approved by Fannie Mae. Don't be surprised if the condo complex you're interested in isn’t there because the list is very small.

If the condo complex you are interested isn't listed Fannie Mae approved condo list we do what we call a "Spot" Fannie Mae condo financing approval, this is how we get an individual condo unit approved for financing when it's not on the Fannie Mae approved condo list. This process isn't difficult and we get this done within the first couple of days from the time you get an executed sales/purchase contract. We simply request the condo associations budget and have them complete our Fannie Mae condo questionnaire for us to review and so we can determine if the project is going to qualify for a conventional loan, it’s that simple. 

If the condo association budget and/or condo questionnaire don't meet the necessary requirements to be considered a warrantable condo for the low down payments listed above then will either do a Fannie Mae limited review or we'll add on a piggyback second mortgage. For primary residences, you only need to put 10% down and we add a piggyback second mortgage for 15% of the sales price and for second homes you only have to put 15% down and we will add a 15% second piggyback mortgage which allows us to meet the Fannie Mae limited review down payment requirements. Both of these options are much easier to get approved than "Spot" Fannie Mae condo approval because the condo complex questionnaire and condominium association budget isn't required.

               

Why would a Florida Condo complex not be considered a Warrantable Condo?

  • The condo complex association doesn't allocate 10% of their revenue to fund the condo association reserves account.
  • One person or entity owns more than 10% of the units.
  • Slip and fall Litigation or the developer is named as a party that relates to the safety, structural soundness, habitability.
  • The commercial space exceeds 25% of the total square footage of the project.
  • For investment purchases only, at least 50% of the current unit owners must be occupied as primary residences and second homes. 

Florida Fannie Mae Condominium limited review approval requirements

A Fannie Mae limited review only requires that the project meet a few requirements listed below, Fannie Mae allows this because the down payment requirement is higher.

  • The developer has transferred control of the association to the individual unit owners.
  • No litigation for which the developer is named as a party that relates to the safety, structural soundness, habitability
  • The project must be 100% complete with no additional phases to be built.
  • At least 90% of the total units are sold and closed.
  • Must not be a condotel or have condo hotel type amenities such as a check-in desk.
  • No one can own more than 10% of the units.
  • The commercial space can’t exceed 25% of the total project.

Florida Fannie Mae limited review Condo borrower requirements

  • Primary residences require a 25% down payment.
  • Second homes require a 30% down payment.
  • Investment properties not allowed.
  • The Minimum Credit Score is 620.

Florida Non-Warrantable Condo Mortgage Loans

A non-warrantable condo loan is not eligible to be sold to Freddie Mac or Fannie Mae, and as such, mortgage financing for this type of property is considered by most banks to be more “risky.” Freddie Mac and Fannie Mae would consider a condo to be non-warrantable if the condominium has any of the following.

  • The condo association doesn't allocate 10% of their revenue to fund the condo association reserves account.
  • One person or entity owns more than 10% of the units.
  • Slip and fall Litigation or the developer is named as a party that relates to the safety, structural soundness, habitability.
  • The commercial space exceeds 25% of the total square footage of the project.
  • For investment purchases only, at least 50% of the condo units must be occupied as primary residences and second homes. 
  • The developer hasn't completed the project.
  • They allow daily rentals and or have condotel or condo hotel type amenities such as a check-in desk.

We know the Florida Condo Financing Mortgage Loan Business and Can Finance Easy, Complex and Tough Deals. 

               

Has your Florida Condo Financing loan been denied by a Mortgage Lender because?

  • The condo complex budget doesn't have 10% reserves.
  • The mortgage lender requires 20% to 30% down.
  • The condo master Insurance policy doesn't have coinsurance.
  • They require 50% of the units to be owner-occupied and/or second homes.
  • The mortgage lender requires the condo complex to have law and ordinance insurance.
  • The mortgage lender has classified it as a non-warrantable condo or condo hotel.

Not to worry we close these types of loans all the time, We do this by utilizing our years of experience and "Outside The Box Thinking" to get buyers pre-approved for the maximum loan amount possible while keeping their down payment and closing costs as low as possible. 

People choose us for their Condo financing over everyone else because
  • We get the necessary information from the Florida condo association within 1 to 3 days from the time you get a purchase contract so you don’t waste your money on a home inspection and appraisal fee's if the condo doesn't qualify for the low down payments listed above.
  • We can do a second mortgage to you get your Florida condo loan approved if the condo doesn't have 10 percent reserves.
  • We offer same day free pre-qualifications.
  • 24-hour underwriting and loan closings in as little as 30 days.
  • We offer the best Florida condo interest rates available.
  • We follow Fannie Mae & Freddie underwriting guidelines and don’t add additional underwriting requirements like many lenders do.
  • We allow coinsurance on Florida condos.

Can you get a Florida Condo loan when it's not listed on the Fannie Mae Condo approved list?

Yes, you can!
  • We do what we call a Spot Florida Condo loan approval, we simply review the Florida condo association budget and have them complete our condo questionnaire, with these two things we can determine if the condo project will qualify for the low down payments listed above.
  • We do this in the first two to three days after your sales contract has been accepted by the seller so we know if the condo project will be approved prior to you spending money on a home inspection and an appraisal. 
  • About 70 to 80% of the spot condo loans are being approved.

Can you get condo financing if the condo complex association doesn't have 10% budgeted to fund reserves?


Yes, you can for primary residences and second homes! For primary residences, you have to put down 25% and on second homes you have to put down 30% which allows us to do a Fannie Mae limited review and we don't need to worry about the condo Association budget or get our condo questionnaire completed. If you don't have 25% or 30% to put down, don't worry because we can do a second mortgage so that you only have to put 10% down for a primary residence and 15% for a second home purchase.


Can you get a condo loan on a non-warrantable Florida condo?

Yes, you can just because a Florida condominium is Non-Warrantable doesn't mean you won't be able to get a condo mortgage loan.


Can you get a Florida condo loan with less than 25% or 30% down payment?

Yes, you can.


Can you get an FHA loan on a Florida condo with 3.5% down payment?

Yes, you can as long as the Florida condo is listed on the FHA Approved Condo List.


Can you get a VA loan on a Florida condo with 0% down payment?

Yes, you can as long as the Florida condo is listed on the HUD Approved Condo List.

               

We offer loans for the entire state of Florida and all of the following cities;
Monroe County Florida Cities; Big Pine Key, Islamorada, Key Colony Beach, Key Largo, Key West, Long Key, Marathon, Marathon Shores, Sugarloaf Shores, Summerland Key, and Tavernier. Collier County Florida Cities; Marco Island, Naples Golden Gate, Lee County Florida Cities: Alva, Boca Grande, Bonita Springs, Buckingham, Captiva, Cape Coral, Fort Myers, Fort Myers Beach, Lehigh Acres, Sanibel. Jacksonville, Tampa, Saint Petersburg, Hialeah, Orlando, Fort Lauderdale, Tallahassee, Hollywood, Pembroke Pines, Miami, Palm Beach, West Palm Beach, Boca Raton, Miramar, Sarasota, Gainesville, Bradenton

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