Buying a Florida Condo in 2026: Is It Safe — and How Do You Finance a Non-Warrantable Building?

Questions this article answers

• Is it safe to buy a Florida condo in 2026 after Surfside and the new laws?
• What do the milestone inspection and SIRS actually check?
• What makes a condo “non-warrantable”?
• How did Fannie Mae’s 2026 rules (LL-2026-03) change condo lending?
• Can I still get a loan on a non-warrantable building — and what down payment range should I plan for?
• What documents should I review before making an offer?
• Why does it matter if my lender isn’t familiar with Florida condos?

At a glance

3+ stories

Buildings needing a milestone inspection — generally at 30 yrs (coastal agencies may require 25)

Aug 3, 2026

Fannie Mae retires Limited Review — Full Review or eligible Waiver path

10% → 15%

Minimum reserve funding (applications on/after Jan 4, 2027)

Dec 31, 2026

Outer limit to complete SIRS when aligned with a milestone inspection

~10–30%+

Planning range, conventional vs. Non-QM/portfolio (illustrative)

8 components

Structural elements a SIRS must reserve for

Is it safe to buy a Florida condo in 2026?

There is no blanket safety conclusion for Florida condos; the specific building needs professional review. After the 2021 Champlain Towers South collapse in Surfside, Florida passed a series of laws (Senate Bill 4-D in 2022, SB 154 in 2023, and House Bill 913 in 2025) that require many older condo buildings to inspect their structures and address structural-reserve funding more directly. Those records can inform the decision, but statutory compliance or a mortgage approval does not establish that a building is safe.

The trade-off is that some buildings are now revealing deferred maintenance and underfunded reserves that had been deferred for years — which can mean special assessments, higher HOA dues, delayed closings, or a building that no longer fits conventional condo project guidelines. “Safe to buy” in 2026 really means two questions answered together: does the building appear structurally and financially sound, and is there a realistic financing path? This guide walks through both.

Why this matters now

Florida’s structural laws and Fannie Mae’s 2026 condo rules are landing in the same window. A building that was easy to finance in 2024 may need a different loan strategy today. Buyers are best positioned when they check the building’s paperwork before writing an offer — not after the inspection period starts ticking. In coastal markets such as Miami-Dade, Broward, Palm Beach, Collier/Naples, Sarasota, Tampa Bay, and Miami Beach, also verify local milestone notices and timing with the city or county building department.

What the milestone inspection and SIRS actually check

Two separate requirements often get confused. They work together but answer different questions.

Milestone inspection — is the structure safe?

The primary inspection requirements are in Florida Statutes §553.899. Confirm the building’s specific deadlines and notices with the local enforcement agency; do not infer them solely from distance to the coast.

A milestone inspection is a mandatory structural inspection for condominium and cooperative buildings that are three or more habitable stories tall. The first inspection is generally due when a building reaches 30 years of age (and every 10 years after) — but in coastal areas a local enforcement agency may require the first inspection earlier, at 25 years, based on conditions such as proximity to salt water. Many South Florida jurisdictions have kept the 25-year threshold, so confirm the exact timeline with the local building department. The inspection runs in two phases:

• Phase 1 is a visual inspection by a licensed engineer or architect.
• Phase 2 is triggered only if Phase 1 finds substantial structural deterioration, and can involve more invasive testing. If Phase 2 identifies required repairs, the association must act on a defined timeline — which often means special assessments.

SIRS — is the money set aside to fix it?

See Florida Statutes §718.112 for reserve-study, funding and exception details. A completed study and adequately funded repairs are different questions.

A Structural Integrity Reserve Study (SIRS) is a reserve-funding plan designed to help the association plan for major structural repairs. Under current Florida law (§718.112(2)(g), as amended by HB 913), it must address at least the following eight structural components and categories: roof; load-bearing walls and primary structural systems; fireproofing and fire-protection systems; plumbing; electrical systems; waterproofing and exterior painting; windows and exterior doors; and any other item whose replacement cost exceeds $25,000 or the inflation-adjusted threshold and whose failure would negatively affect the structural integrity of those components.

Crucially, for budgets adopted on or after December 31, 2024, associations generally cannot waive or fully reduce reserve funding for these structural components the way they once could. HB 913 does allow limited flexibility — including funding through special assessments, loans, or lines of credit, and a temporary pause or reduction of reserve contributions for no more than two consecutive annual budgets (for budgets adopted on or before December 31, 2028) when a milestone inspection reveals repairs that must be made first — but the underlying obligation generally cannot simply be eliminated.

The detail most articles get wrong

December 31, 2026 is not a blanket “milestone inspection deadline.” Many unit-owner-controlled associations existing on or before July 1, 2022 had a December 31, 2025 SIRS deadline. The December 31, 2026 outer limit applies when the SIRS is being coordinated with a milestone inspection required by that date. Getting this distinction right is exactly the kind of thing a Florida-condo-savvy lender should flag early.

What is a non-warrantable condo — and what makes a condo non-warrantable?

A non-warrantable condo is a condo project that does not meet Fannie Mae or Freddie Mac project standards, so conventional financing is usually unavailable. The unit may still be financeable through portfolio, Non-QM, DSCR, or foreign national programs, but the lender will usually apply a different project-review standard than a conventional agency loan. “Warrantable” simply means the project does meet the applicable agency standards for the loan type being used. When a project fails one or more of those standards, conventional loans typically are not available. Common reasons a Florida building may land there include:

• Deferred maintenance or an active or upcoming special assessment
• A missing, incomplete, or unfavorable SIRS or milestone report
• Inadequate reserves or reserve funding below the required threshold
• Insurance gaps — or master policies with very high named-storm or wind deductibles
• Investor concentration, single-entity ownership, presale, short-term-rental, or project-use issues, depending on the loan type and lender
• Pending litigation involving the association

Fannie Mae’s own project tools are a safer guide than headline counts. If a condo project carries an “Unavailable” or ineligible status, loans on units in that project generally cannot be sold to Fannie Mae unless the issue is resolved or an eligible exception applies. Common triggers can include insufficient master property insurance, critical or deferred repairs, failure to meet applicable inspection requirements, significant pending litigation, or project-use issues such as hotel-like or short-term-rental operations. The takeaway for a buyer is the same: you cannot assume a Florida condo is financeable just because units are listed for sale.

When to pause before buying a Florida condo

Non-warrantable does not automatically mean bad, and warrantable does not automatically mean safe. The building documents matter more than the label. Slow down and get additional review if any of these show up:

• No completed SIRS or unclear milestone-inspection timeline for a building that should have one.
• Phase 2 findings, critical repairs, evacuation orders, or unresolved structural items.
• Large pending special assessments with unclear scope, timeline, payment status, or buyer responsibility.
• Master insurance gaps, unusually high wind or named-storm deductibles, or flood-coverage uncertainty.
• Significant association litigation, budget deficits, HOA delinquency issues, or project-use problems such as hotel-like operations.

Practical rule

A red flag is not always a dealbreaker. It is a reason to slow down, get the missing documents, ask the association direct questions, and confirm the loan path before your deposit, inspection period, or closing timeline is exposed.

2026 Fannie Mae condo rule changes: Full Review, reserves, and insurance

Primary source: Fannie Mae Lender Letter LL-2026-03. Its project and insurance requirements are separate from Florida statutory compliance.

On March 18, 2026, Fannie Mae issued Lender Letter LL-2026-03 (with a matching Freddie Mac bulletin), reshaping how condos get financed. Four changes matter most to Florida condo buyers:

• March 18, 2026 — Florida’s extra PERS project-review step retired for new/newly-converted attached condos; they’re now reviewed like projects in other states. The 50% investor-concentration limit was also retired for established projects under Full Review.
• July 1, 2026 — master-policy per-unit deductible capped at $50,000, with a unit-owner policy required in those cases.
• August 3, 2026 — Limited Review retired. Established projects that previously used Limited Review generally must be reviewed through Full Review or an eligible Waiver of Project Review path. That makes the building’s budget, reserves, insurance, delinquencies, litigation, and project status more central to the conventional loan decision.
• January 4, 2027 — minimum reserve funding rises from 10% to 15% of annual budgeted assessment income on Full Review files (unless a qualifying reserve study supports the highest recommended funding level).

What it means for you

For conventional loans, a larger down payment may no longer avoid the need to understand the building. Under Full Review, project-level items such as reserves, insurance, litigation, critical repairs, and association delinquencies can determine whether the loan is eligible. That makes the building documents a core part of due diligence, not an afterthought.

How to finance a non-warrantable Florida condo

If a building is not warrantable, conventional financing through Fannie Mae or Freddie Mac usually is not on the table — but that does not automatically mean the property is unfinanceable. Several paths may exist, each with its own trade-offs:

Simple financing decision path

Compare conventional financing when both the project and loan satisfy the applicable requirements. Review jumbo financing when the amount exceeds the applicable conforming limit. Loan size does not decide whether a project is acceptable or whether a loan is non-QM; each potential lender must evaluate the building and borrower.

• Non-QM / portfolio loans — some Non-QM and portfolio lenders apply their own project guidelines when a condo does not fit standard agency financing. These often require a larger down payment than conventional financing, with many stronger scenarios planned in the 20–30% range and higher down payments possible for riskier projects, investor use, limited documentation, new construction, or lender-specific overlays. Pricing may also be higher than conventional. Figures are illustrative and vary by lender and building.
• DSCR loans — for investment-property buyers, qualifying on the unit’s rental income rather than personal income. See our DSCR loan program and estimate coverage with our DSCR calculator.
• Foreign national programs — for non-resident buyers; see foreign national loans or our foreign national mortgage decision map.
• Bank statement & asset-based options — for self-employed or asset-rich buyers, see our bank statement loans. For the rule background, read our deep dive on the 2026 Fannie Mae condo rule changes.

New construction note

Brand-new or newly converted Florida condos can require staged deposits, developer-specific terms, and materially more cash than a resale purchase. Requirements vary by developer, lender, project status, occupancy, and buyer profile, so build the cash plan early and avoid assuming resale-condo financing rules apply.

Which path fits which buyer?

Out-of-state second-home buyer

Buying a coastal condo for personal use; building appears sound but misses an agency reserve or project-review rule. Possible fit: Non-QM / portfolio loan with a larger down payment.

Out-of-state DSCR investor

Adding a Florida rental unit to a portfolio; wants the property cash flow to be central to the loan review. Possible fit: DSCR loan, subject to rent coverage, HOA rules, and project eligibility.

Non-resident foreign buyer

Lives abroad, limited or no U.S. credit, and is buying a Florida condo as an investment or seasonal home. Possible fit: foreign national program, subject to assets, reserves, occupancy, and building eligibility.

Best financing path by borrower type

All figures and paths are illustrative, vary by lender, and are not a commitment to lend.

Why out-of-state buyers need a Florida-condo-savvy lender

Florida condo project review has timing and documentation requirements that a lender unfamiliar with Florida condos may miss. A lender may not know to request the milestone report, may misread the SIRS deadline nuance, or may not flag a high wind-deductible master policy until it threatens the closing. Because Gallagher Team works through the wholesale channel, your scenario can be compared across conventional, Non-QM, DSCR, foreign national, and portfolio options based on the building and your borrower profile. Investors scaling a condo portfolio can also explore DSCR, BRRRR, or a cross-collateralization mortgage strategy to leverage existing equity (see our DSCR and BRRRR loan programs).

Why a broker, not just a bank

A retail bank typically underwrites a condo to its own single project rulebook — and you often won’t learn it has a problem with the building until after it has ordered the appraisal and reviewed the full HOA, budget, insurance, and reserve package, potentially a month or two into the deal. Because the Gallagher Team works a wholesale network of 100+ lenders and investors — many of which use portfolio or non-agency project guidelines — a building that doesn’t fit one lender’s agency rules may still fit another lender’s Non-QM, DSCR, or portfolio guidelines, and the file can often pivot to that lender without starting over. Straightforward, agency-eligible condos are easy to place anywhere; the network earns its keep on the harder, non-standard buildings. It isn’t a guarantee of approval, pricing, or eligibility — the right lender still has to fit the building, occupancy, documentation, reserves, and your profile. See how broker vs. bank pricing works.

Documents to review before you make an offer

• HOA questionnaire (the lender’s condo project questionnaire) — the fastest read on warrantability.
• Last two years of association budgets — look at the reserve line and any planned increases.
• Current SIRS — confirm it exists, is recent, and that the budget aligns with the applicable reserve-funding plan.
• Most recent milestone inspection report — including any Phase 2 findings and repair timelines.
• Master insurance evidence — watch for high named-storm or wind deductibles.
• Reserve funding — and whether it appears to meet the threshold or study-based funding level your loan type requires.
• Flood-zone designation — NFIP or private flood coverage may be required even on upper floors.
• Special-assessment history and any pending assessments — ask directly; they may not be volunteered.

Important

Building-specific facts must be verified for each individual building, and this article is not legal, tax, structural, engineering, financial, or credit advice. For questions about association documents, special assessments, title, or your purchase contract, consult a Florida real estate attorney or other qualified professional. Loan options, down payments, reserves, pricing, terms, and project eligibility vary by lender, program, property, and borrower profile and are not a commitment to lend.