Condo Financing: Warrantable vs Non-Warrantable Loans

Modern apartment building with balconies and large windows under a clear blue sky. Palm trees in front create a sunny, relaxed atmosphere.

Buying a condo in Florida can feel like navigating a maze of extra rules and restrictions. While they’re a popular choice for homeowners, snowbirds, and real estate investors, condominiums often create significant challenges for lenders. Many condo projects are not “fully warrantable” under Fannie Mae guidelines — meaning that, even if you’re financially qualified, your mortgage application could be denied by most banks or direct lenders. A lot of big lenders will only make loans on fully warrantable condo projects, and have additional requirements on top of that, which results in a large number of loans being turned down. In most cases, a detailed condo questionnaire is required to determine the project’s eligibility for financing and uncover any potential issues before you apply.

At JZ Mortgage, we’ve built our reputation on helping buyers and investors secure condo financing in Florida when other lenders can’t. Whether your condo is warrantable, non-warrantable, or even a condo-tel, we have the programs, lender relationships, and creative mortgage solutions to get your deal closed — from Miami to Sarasota, Tampa to Orlando, and everywhere in between.

Understanding Condo Financing Rules

Fannie Mae Warrantable Condos – Full Review

To qualify for high loan-to-value (LTV) conventional financing, a condo project must meet all Fannie Mae requirements. This includes:

Completed condo questionnaire
Budget showing at least 10% allocated to reserves
Master insurance policy
No ineligible project characteristics

Maximum LTV ratios:

Primary residence: up to 97%
Second home: up to 90%
Investment property: up to 80%

The challenge: Many Florida condos fail the full review due to insufficient reserves, too many investor-owned units, pending litigation, or other disqualifying factors — especially in popular markets like Miami Beach, Fort Lauderdale, Clearwater, and Naples.

Fannie Mae Limited Review – Flexible Approval

A limited review requires less documentation and no budget reserve requirement. This option can approve many projects that fail the full review.

Primary residence: up to 90% LTV
Second home: up to 75% LTV
Investment property: up to 70% LTV

Many buyers and realtors don’t realize a limited review is even an option. At JZ Mortgage Services, Inc., we use this approach frequently to help clients qualify for competitive Florida condo mortgage rates, especially in areas with older buildings like St. Petersburg, Sarasota, and Daytona Beach.

Non-Warrantable Condo Financing

If your condo doesn’t meet Fannie Mae’s warrantability standards, we have access to portfolio lenders and specialty mortgage programs that do not follow conventional guidelines. These lenders offer:

Primary residence: up to 90% LTV
Second home: up to 90% LTV
Investment property: up to 80% LTV
More flexible underwriting for unique property situations

Non-warrantable condo loans are a strong solution for many Florida buyers, especially for investment properties in resort towns or coastal communities.

Specialty Condo Loan Programs

Some condos have unique characteristics that require specialized financing:

HELOC 2nd Mortgages – Up to 90% combined LTV for primary and second homes
Condo-Tel Loans – For resort-style condos with on-site rental desks or short-term rental programs, common in destinations like Orlando, Key West, and Panama City Beach
DSCR Investor Loans – No-income, no-tax-return options for rental properties, perfect for Airbnbs or VRBO listings

Why Big Banks Deny Condo Loans (and We Approve Them)

Most large banks and retail mortgage lenders apply overlays — extra rules that go beyond Fannie Mae guidelines. Even if your condo could qualify under standard requirements, a bank’s internal rules might still result in a denial.

JZ Mortgage works with over 100 wholesale lenders, giving us access to the widest variety of Florida condo loan programs. If one lender says no, we can pivot to another — often without restarting the process — and still close on time.

Who We Help Most

Primary home buyers in Florida seeking a low-maintenance lifestyle in cities like Tampa, Sarasota, and Miami
Out-of-state buyers purchasing a second home or vacation condo near Florida’s beaches and tourist destinations
Real estate investors adding rental condos to their portfolio, including short-term vacation rentals and long-term leases
Borrowers denied by big banks who still have strong financing potential

Your Florida Condo Mortgage Experts

With more than a decade of experience, JZ Mortgage has helped hundreds of buyers and investors finance condos across Florida — from Miami Beach to Sarasota, Clearwater to Jacksonville. Our team understands the intricacies of condo underwriting and how to navigate both warrantable and non-warrantable financing.

If you’ve been told “no” by another lender, that doesn’t have to be the end of your condo purchase.

Start your free Florida condo loan consultation today: