Condos

Can I buy a condo with a conventional loan?

Short answer

Yes, but the project must be warrantable — meeting Fannie Mae or Freddie Mac project-level rules around owner-occupancy, insurance, reserves, litigation, and budget. Many Florida condo projects are warrantable; some are not, especially older buildings or projects affected by recent insurance and reserve law changes.

Plain-English explanation

Condo project review is its own underwriting layer on top of the borrower's loan file. Lenders run either a 'limited review' (faster, allowed on lower-LTV primary-residence purchases) or 'full review' (deeper, required on higher-LTV or non-owner-occupied purchases). Project-level concerns: owner-occupancy ratio, single-entity ownership concentration, insurance coverage and deductibles, deferred maintenance, special assessments, active litigation, reserves. Florida's 2022+ insurance/reserve law changes have made some older condos harder to finance. Subject to Fannie/Freddie project rules.

Practical example

A buyer in a Lake Nona condo project that's been recently updated, has full reserves, and 70%+ owner-occupancy clears Fannie's limited review and closes on a standard conventional loan. A different buyer in a 1980s coastal condo with $50k in special assessments pending and 40% owner-occupancy may not clear Fannie/Freddie warrantability — the deal moves to FHA (if approved), to portfolio lending, or stalls.

What can change the answer?

Project FHA/conventional warrantability, owner-occupancy ratio, project insurance and reserves, litigation, and Florida 2022+ condo law can change the answer.

Your next step

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