Shopping for a Tampa condo and wondering why some lenders say yes while others pause? You are not alone. Condo financing in Florida changed a lot after Surfside, and Tampa buildings now face tighter reviews on safety, insurance, and reserves. In this guide, you will learn what warrantable vs. non-warrantable really means, how it affects your loan options, and the exact steps to check a building before you write an offer. Let’s dive in.
Warrantable vs. non-warrantable, simply explained
A condo is considered warrantable when it meets the underwriting standards that allow lenders to sell the loan to Fannie Mae or Freddie Mac. That opens the door to the widest range of conventional mortgages and often lower down payments. You can confirm status through lender tools like Fannie Mae’s Condo Project Manager.
A non-warrantable condo does not meet one or more of those standards. Buyers may still purchase, but financing options are more limited and can come with higher rates and larger down payments. In Florida, more buildings have been flagged since Surfside, and lenders rely on agency tools to mark projects unavailable or not eligible.
Government-backed options have their own rules. FHA uses an approved list and allows some single-unit approvals, while VA typically requires the entire project be approved.
Why this matters in Tampa right now
Florida’s new milestone inspection and reserve rules for buildings at least three stories are being enforced by the City of Tampa. These inspections and resulting repair plans can affect a building’s mortgage eligibility, so you want to see documentation early in your process. You can review local submission guidance on the City of Tampa’s milestone inspection page.
Insurance is another big factor. Tampa Bay’s wind and flood exposure means lenders look closely at master policies, deductibles, and flood coverage. Fannie Mae’s flood insurance requirements outline what your building’s policy needs to show.
Since Surfside, many Florida condos have appeared on agency tools as unavailable or not eligible, which can shrink the buyer pool and slow sales. Reports note a large share of flagged projects are in Florida, affecting resale markets across the state. See context in this Bisnow report on GSE condo lists.
Finally, Tampa’s market cooled from the peak years. More inventory and a higher share of cash buyers mean warrantability can influence both time on market and pricing. Recent coverage shows Tampa dropped in national “hot market” rankings, signaling a shift in momentum. Read more in Axios Tampa Bay’s market snapshot.
What lenders review in a condo building
Lenders and agencies look at the project, not just your unit. Common review items include:
- Project completion and control: Substantially complete and typically owner-controlled rather than developer-controlled.
- Owner occupancy and investor concentration: High rental or investor share can be a red flag.
- Single-entity ownership: Limits on how many units one person or entity owns.
- Commercial space: Too much non-residential square footage can disqualify a project.
- HOA budget health: Adequate reserves, sound budgeting, and no major unfunded repairs.
- Delinquent dues: A high share of owners behind on dues signals risk.
- Litigation and critical repairs: Open structural or habitability issues often stop financing until resolved.
- Insurance coverage: Master policy limits, wind and flood coverage, and deductibles must meet program standards.
For a practical overview of these risk factors, see this summary on what makes a condo warrantable.
Your financing options by condo type
If the condo is warrantable
You likely qualify for conventional conforming loans sold to Fannie Mae or Freddie Mac. That often means more competitive rates and lower down payments, sometimes as low as 3 to 5 percent depending on your profile and loan program. Ask your lender to verify status through Fannie Mae’s Condo Project Manager.
If the condo is non-warrantable
You still have paths to buy. Typical routes include:
- Cash purchase: The simplest path when timing or eligibility is tight.
- Portfolio loans from local banks or credit unions: These stay on the lender’s books, so terms vary. Expect higher rates and larger down payments. See an example of non-agency options from a correspondent channel here.
- Specialty non-agency products: Some lenders offer non-conforming condo loans with stricter credit and lower LTVs.
- FHA single-unit approval: Possible in some cases, but approval is specific and expires. Learn more from HUD’s single-unit approval update.
- VA loans: VA generally requires the condo project be approved. Here is a consumer guide to finding VA-approved condos.
Seller and HOA steps to keep deals on track
If your building is warrantable, your buyer pool is larger and closings can move faster. If not, prepare for fewer financed offers and more negotiation. To support financing and protect value, work with your HOA to:
- Document milestone compliance: Provide recent inspection reports and reserve studies. Follow the City of Tampa’s milestone inspection process.
- Share current insurance certificates: Include master policy declarations, wind and flood details, and deductibles that align with Fannie Mae insurance requirements.
- Clarify litigation status: If litigation exists, outline scope, funding plans, and timelines. Lenders scrutinize open issues.
- Track key ratios: Provide owner-occupancy, dues delinquency, and single-entity ownership data in a clear summary. See common thresholds in this warrantability overview.
Quick Tampa condo financing checklist
Use this before you make or accept an offer.
Confirm project status:
- Ask your lender to check Fannie Mae’s Condo Project Manager.
- Ask for a Freddie Mac Condo Project Advisor review or PAR finding using the CPA FAQ.
- If using FHA, search HUD’s FHA condo list. If using VA, confirm the project on the VA condo approval resources.
Request condo documents:
- Most recent budget, reserve study, and milestone inspection reports.
- 12 months of HOA meeting minutes to check for special assessments or repairs.
- Master insurance declarations showing wind and flood coverage.
- Dues delinquency rate and single-entity ownership list.
- Any City of Tampa notices related to inspections or repairs.
Write smart contracts:
- Include a financing contingency tied to project approval by your lender.
- Set a short timeline for HOA document delivery and lender review.
Final thoughts and next steps
In Tampa, the difference between warrantable and non-warrantable can change your loan options, your monthly payment, and how quickly a deal closes. Do the project check first, then tailor your financing plan. If you hit a roadblock, portfolio or non-agency options can still get you into the right home with the right strategy.
Ready to evaluate a specific building or want a second opinion on financing paths? Reach out to Julimar Barreiro for a clear, step-by-step plan tailored to Tampa condos.
FAQs
What does “warrantable” mean for a Tampa condo loan?
- It means the building meets standards that allow lenders to sell your mortgage to Fannie Mae or Freddie Mac, which typically unlocks more loan options and competitive terms.
How do I check if a specific Tampa condo is financeable?
- Ask your lender to run the project through Fannie Mae’s and Freddie Mac’s review tools and request the HOA’s budget, reserves, insurance, and inspection reports before you commit.
Can I use FHA or VA for a Tampa condo purchase?
- Yes, but the building must meet each program’s rules; FHA relies on approved projects or certain single-unit approvals and VA usually requires project approval.
Why are insurance and reserves such big issues for Florida condos?
- Tampa Bay’s wind and flood risk drives stricter insurance requirements, and Florida’s new inspection and reserve standards require proof of funding and repair plans that lenders review closely.
If a Tampa condo is non-warrantable, how much down payment will I need?
- It varies by lender and product, but non-warrantable loans often require larger down payments and higher credit standards than conventional conforming loans.
