Buying a condo in Florida: financing after the milestone inspection law

Can you get a mortgage on a condo in Florida right now?

Yes. What makes condos different is that every loan goes through two reviews:

• You, the borrower: income, credit, assets and the payment
• The project, meaning the building and its association: finances, insurance, legal status and physical condition

A project that fails the program's rules cannot use that program, even if your file is strong. Fannie Mae states it plainly: it will not purchase loans on units in projects with characteristics that make the project ineligible. Fannie Mae also requires every eligible project to be created and remain in full compliance with the law of its state. In Florida, that means the condo safety laws passed since 2022 are part of the lending decision.

What are Florida milestone inspections and the SIRS?

Florida's 2022 condo safety law, known as SB 4-D, created two requirements that buyers and lenders now ask about. Both have been amended since. Both apply to buildings three habitable stories or more.

Milestone inspections

Under Florida Statutes s. 553.899, condo and co-op buildings three habitable stories or more need a milestone structural inspection:

• By December 31 of the year the building reaches 30 years from its certificate of occupancy, then every 10 years
• At 25 years if the local building official requires it based on local conditions, such as proximity to salt water
• Phase one is a visual examination by a Florida-licensed architect or engineer
• Phase two, with testing, is required only if phase one finds substantial structural deterioration

Owners must receive the inspector's summary within 45 days of the association receiving the report, whatever it finds. The summary is also posted on the property and on the association's website if it is required to have one.

Structural integrity reserve study (SIRS)

Under Florida Statutes s. 718.112, associations with residential buildings three habitable stories or higher must complete a SIRS at least every 10 years. It covers the roof, structure, fireproofing and fire protection, plumbing, electrical, waterproofing and exterior painting, windows and exterior doors, and other items whose deferred maintenance or replacement cost exceeds $25,000, adjusted for inflation, if their failure would affect those systems.

• It is based on a visual inspection and done or verified by a Florida engineer or architect, or a credentialed reserve professional
• It must include a baseline funding plan that keeps the reserve balance above zero
• Associations that existed on or before July 1, 2022 had until December 31, 2025; an association with a milestone inspection due by December 31, 2026 may do both together, but no SIRS may be completed after December 31, 2026
• For budgets adopted on or after December 31, 2024, owners cannot vote to waive or reduce reserves for SIRS items

After a milestone inspection, a board may, with majority owner approval, pause or reduce reserve contributions for up to two annual budgets to pay for repairs. The Florida Department of Business and Professional Regulation keeps a free SIRS Reporting Database where you can see whether an association has reported a completed study.

Florida's minimum and the lender's standard

One detail catches buyers off guard. Florida's SIRS uses a baseline funding plan, but as of 2026 Fannie Mae no longer accepts the baseline funding method when a lender relies on a reserve study in place of its own reserve test. A building that meets Florida's minimum may still need stronger reserves for a conventional loan; the lender decides during its project review.

How do special assessments affect getting a condo loan?

For a conventional loan, Fannie Mae requires the lender to review every current or planned special assessment: what it is for, when it was approved, the original amount and remaining balance, and when it is expected to be paid off.

Routine work or a critical repair

An assessment for routine, preventive or normal capital replacement work is not a critical repair, and it does not make a project ineligible on its own. If an assessment is tied to a critical repair that has not been fixed, the project is ineligible. Fannie Mae's critical repairs include:

• Material deficiencies that could cause a critical element or system to fail within a year
• Mold, water intrusion or damaging leaks, and advanced physical deterioration
• Failing a mandatory state or county structural safety inspection
• Unfunded repairs over $10,000 per unit planned for the next 12 months, not counting repairs funded by a special assessment

Fannie Mae's examples include sea walls, elevators, waterproofing, balconies, foundations, electrical systems and parking structures.

Inspections and evacuation orders

If a structural or mechanical inspection was done within 3 years of the lender's project review, the lender must obtain and review it. Unaddressed critical repairs make the project ineligible until the work is completed and documented by an engineer's report. A partial or total evacuation order makes the project ineligible until it is remediated.

Your side of the file

Your share of a special assessment is a cost you will pay, and it can affect how much you qualify for. How it is counted varies by program and lender. Our guide to how much house you can afford in Palm Beach County covers how association fees change your buying power.

Can you use FHA, VA or conventional financing on a Florida condo?

Each program has its own project rules. Fannie Mae and FHA also require the project to comply with state law.

Conventional, and what changed in 2026

Fannie Mae made several changes in Lender Letter LL-2026-03, dated March 18, 2026, with companion changes from Freddie Mac. As of 2026:

• New or newly converted Florida projects with attached units no longer need Fannie Mae's separate PERS review; lenders can use their own Full Review
• The Limited Review process, which carried tighter limits for attached units in established Florida projects, is retired for applications dated on or after August 3, 2026
• Established projects now use a Full Review, or a Waiver of Project Review for projects of 10 or fewer units
• The 50% investor concentration limit is retired for established projects under Full Review
• For applications on or after July 1, 2026, the master policy deductible is capped at $50,000 per unit
• The unit owner's policy deductible can be no more than the greater of 5% of coverage or $2,500
• For applications on or after January 4, 2027, the minimum replacement reserve under Full Review rises from 10% to 15% of budgeted assessment income

The deductible cap matters in Florida, where master policy windstorm deductibles are often set as a percentage. Ask the association for its master policy and per-unit deductible early.

FHA

For FHA, the project must be FHA approved, or the unit must qualify for a Single-Unit Approval. A Single-Unit Approval requires the project to be complete, not already FHA approved, at least five units and not a manufactured home project, and to meet a subset of FHA's project requirements, including owner-occupancy and financial condition. FHA-insured loans through Single-Unit Approval are limited to 10% of the units, or to two units in projects with fewer than 10 units. HUD's FHA approved condo search shows whether a project is approved. If you are deciding between the two most common programs, see our guide to FHA or conventional.

VA

For a VA loan, the condo project must be accepted by VA. VA publishes its condo rules in its lender handbook and offers a condo report lookup.

What is a non-warrantable condo?

Non-warrantable is an industry term, not a Fannie Mae one, for a project that does not meet Fannie Mae or Freddie Mac standards. Fannie Mae calls these ineligible projects. Characteristics on its list include:

• Operating like a hotel or motel, with rental pools, daily rentals or hotel services
• A single entity owning more than 20% of the units in a project of 21 or more units, or more than two units in a project of 5 to 20 units
• Significant litigation involving safety, structural soundness or habitability
• Critical repairs that are not done, or a project that is terminating or insolvent

What are your options if the building is non-warrantable?

• Find out why. Some issues end once repairs are completed and documented, and a funded assessment for routine work may not be a problem at all
• Check other programs. FHA and VA run their own reviews, and FHA also requires compliance with state law
• Non-warrantable condo loans. Some Non-QM lenders offer them, mainly for investors, as do some condotel programs; eligible issues, down payment and pricing vary by lender. Our guide to Non-QM loans explains the category
• Investor financing. A DSCR loan may finance some condos; condo rules vary by lender. See DSCR loan requirements

A project can also become eligible later once its issues are resolved, but there is no guarantee of when, so do not count on a future refinance.

What should you ask before buying a condo in Florida?

Florida law already hands resale buyers most of what you need. Under Florida Statutes s. 718.503, the seller must provide the declaration, bylaws and rules, the annual financial statement and budget, the milestone inspection summary if one applies, the most recent SIRS or a statement that none was completed, and the association's frequently asked questions sheet.

You also get a review period. The contract must either confirm you received the documents more than 7 days before signing, or let you cancel within 7 days after signing, not counting weekends and legal holidays. For contracts after December 31, 2024, any waiver of these rights has no effect. Use that time to ask:

• Is the building three habitable stories or more, and when was or is its milestone inspection due? Did it need phase two?
• Has the SIRS been completed, and does it appear in the DBPR SIRS Reporting Database?
• Are reserves funded to the SIRS plan, or paused after a milestone inspection?
• Are there current or planned special assessments? For what, how much remains, and when do they end?
• Are any repairs from an inspection not yet done or funded?
• Is there litigation involving the building's structure or safety?
• Does the association run a rental program or allow daily rentals?
• Does one owner or entity hold a large share of the units?
• Is the project FHA approved or VA accepted?
• What does the master insurance policy cover, and what is the per-unit deductible?

How we approach it

With a Florida condo, we look at the building before you write an offer. We review the project's status for FHA and VA, ask the right questions about inspections, reserves, assessments and insurance, and compare how lenders in our network view the project for conventional financing, since lender overlays and condo questionnaires differ. If the project does not fit agency programs, we tell you plainly what the alternatives are and how they compare. Financing is subject to credit approval, underwriting and the lender's project review.

Sources

• Florida Statutes: s. 553.899, Mandatory structural inspections for condominium and cooperative buildings
• Florida Statutes: s. 718.112, Bylaws, reserves and structural integrity reserve study
• Florida Statutes: s. 718.503, Disclosure prior to sale
• Florida DBPR, Division of Condominiums: Inspections and SIRS Reporting Database
• Fannie Mae Selling Guide: B4-2.1-03, Ineligible Projects
• Fannie Mae: Lender Letter LL-2026-03, Updates to Project Standards and Property Insurance Requirements
• HUD: Condominium Mortgage Insurance
• HUD: Mortgagee Letter 2019-13

Common questions