Condo Before Offer
Which documents to request from the HOA and which red flags to check before you put down a deposit.
Before you make an offer on a Florida condo, the building has to qualify as well as you do. The lender reviews the association: reserves, master insurance, pending litigation, special assessments, the milestone inspection and the share of investor-owned units. Any one of them can make the condo non-warrantable and end a conventional loan after you are already under contract. Request the documents below before the offer, not after.
11 checks that can get you denied
- Warrantable vs non-warrantable condo.
- HOA budget and reserves.
- Special assessments.
- Master insurance.
- Flood insurance, if required.
- Pending litigation.
- Milestone Inspection and Structural Integrity Reserve Study (SIRS).
- Planned structural repairs.
- Owners’ past-due HOA payments.
- Share of investor-owned units.
- Rental restrictions.
What to request from the HOA
- Current budget
- Reserve study / SIRS
- Master insurance
- Latest meeting minutes
- List of current and planned assessments
- Litigation information
- Condo questionnaire
- Inspection and repair documents
This checklist helps you spot potential issues before you make an offer. The final decision is made by the lender after a full project review.
The building is underwritten too — separately from you
This is the part that surprises people. On a condo, the lender reviews two borrowers: you, and the association. You can have perfect credit, 30 percent down and two years of reserves, and still be declined because of the building. Nothing about your file fixes it.
The review happens through a condo questionnaire sent to the HOA, plus the association’s budget, reserve study, insurance certificate and meeting minutes. It takes time, and it usually starts late — which is why these problems surface two weeks before closing instead of before the offer.
What makes a building non-warrantable
| Condition | Why it disqualifies |
|---|---|
| More than roughly half the units are investor-owned | Owner-occupancy ratio below guideline |
| One entity owns more than about 20 to 25 percent of units | Single-entity concentration risk |
| More than 15 percent of owners are 60-plus days behind on dues | Delinquency threshold |
| Commercial space above roughly 35 percent of the building | Mixed-use limit |
| Litigation involving the association, especially structural or safety | Unquantifiable liability |
| Reserves funded below about 10 percent of the annual budget | Deferred maintenance risk |
| Master insurance policy short of required coverage | The collateral is not properly insured |
The Florida problem: milestone inspections and reserve studies
After Surfside, Florida changed the rules. Buildings three storeys and higher must complete a milestone inspection at 30 years, or 25 if within three miles of the coast, and associations must complete a Structural Integrity Reserve Study and fund those reserves. Waiving reserves, which many Florida associations did routinely for years, is no longer an option for the covered components.
Two consequences for a buyer:
- Associations that have not completed the inspection or the study fail lender review. Not “maybe” — the questionnaire asks directly.
- Dues went up, often sharply, and special assessments followed. A pending assessment counts in your debt-to-income, and a large one can move the building out of your budget entirely.
This is why older coastal buildings in Pinellas — exactly the ones with the views people want — are the hardest to finance right now.
When the building does not qualify
Non-warrantable is not the end. It changes the program:
- Portfolio and non-QM lenders write non-warrantable condos. Expect 20 to 25 percent down and a higher rate.
- If it is an investment purchase, a DSCR loan may work, subject to the same building review.
- FHA requires the building to be on the FHA-approved list or clear single-unit approval. Most Florida buildings are not on it.
- Cash, then refinance later if the association resolves the issue.
Strong buyer, declined by the building
Pinellas condo built in the 1980s, three blocks from the water. Buyer had 25 percent down and excellent credit. The association had not completed its milestone inspection and had voted years earlier to waive reserves.
Conventional financing was unavailable for that building, full stop. We found the answer during the inspection period because the association documents were requested on day one — so the buyer kept the deposit instead of losing it after an appraisal and three weeks of underwriting.
Frequently asked questions
What does warrantable mean?
That the building meets Fannie Mae or Freddie Mac guidelines, which is what makes conventional financing available. Non-warrantable buildings need portfolio or non-QM lenders instead.
Can I be denied because of the building even with perfect credit?
Yes. The association is reviewed separately from you, and nothing in your file can offset a building that fails.
What is a milestone inspection?
A Florida structural inspection required for buildings three storeys and up at 30 years, or 25 within three miles of the coast. Lenders ask whether it is complete and what it found.
What is a SIRS?
A Structural Integrity Reserve Study. Florida associations must have one and fund reserves for the components it covers. Reserves can no longer be waived for those items.
How does a special assessment affect my loan?
A pending or approved assessment is counted in your debt-to-income, the same as any other payment, which lowers the price you qualify for.
When should I start checking the building?
Before the offer if possible, and on day one of the inspection period at the latest. Association documents take time to arrive.
Do I need my own insurance if the building has a master policy?
Yes. The master policy covers the structure; you need an HO-6 for the interior and liability.
Can I buy a non-warrantable condo at all?
Usually yes, through a portfolio or non-QM lender, with a larger down payment and a higher rate. It is a different program, not a dead end.
Already have a specific condo in mind?
Leave the address — we’ll take a preliminary look at project eligibility and which financing options may fit.
General information — not a commitment to lend and not legal, tax or investment advice. Just My Loans, LLC · NMLS #2569569.
Company NMLS #2569569 · Licensed in Florida, Texas, South Carolina & Pennsylvania
About Julia · Updated: 10/10/2026