Warrantable vs. Non-Warrantable Condos
Why some Miami condos qualify for a standard mortgage — and some don’t.
What It Means
A “warrantable” condo meets the project-level criteria that Fannie Mae, Freddie Mac, and most conventional lenders require — things like adequate reserve funding, a reasonable owner-occupancy ratio, limited commercial space, and no major pending litigation. Buildings that meet these standards can be financed with a normal conventional loan, often with as little as 3–10% down.
A “non-warrantable” condo fails one or more of those criteria. That doesn’t mean you can’t buy it — it means you’ll likely need a portfolio loan or other non-agency product, usually with a larger down payment and a somewhat higher rate.
Key Things to Know
- Common reasons a building goes non-warrantable: heavy short-term rental or hotel-condo use, high investor concentration, ongoing litigation, too much commercial space, or underfunded reserves.
- As of 2026, Fannie Mae has retired its streamlined “Limited Review” process for many projects, meaning more documentation and longer review timelines even for buildings that ultimately qualify.
- Newer Florida reserve-funding requirements (the 15% threshold tied to SIRS components) are affecting some buildings’ eligibility as lenders take a harder look at reserve health.
- Ask your lender or agent to run a project eligibility check on a specific building before you write an offer, not after — it can change your financing timeline and down payment significantly.
Why It Matters to Buyers
Non-warrantable status isn’t a reason to avoid a building — plenty of great Miami condos fall into this category, especially ones that allow short-term rentals. But it changes your financing options and timeline, so it’s worth knowing before you fall in love with a specific unit. This is general information, not lending advice — loan terms vary by lender, so work with a mortgage professional for your specific situation.
Related Reading
Financing eligibility is checked through the lender’s condo questionnaire, and buildings still in pre-construction have their own separate financing considerations covered in our pre-construction buyer’s guide. If you’re purchasing from outside the U.S., our foreign buyer’s guide covers additional financing paths. See our buyer’s guide for the full purchase process.
