Buying a Condo in Florida? Check These Things Before You Make an Offer

You found a condo in Florida that checks every box — great location, nice amenities, price that fits your budget. You're ready to make an offer. But before you do, there are a few things specific to condos that can derail your financing or turn your dream purchase into a headache. I've seen it happen, and I want to help you avoid it.

Buying a condo is not the same as buying a single-family home. The building itself — not just the unit — has to meet certain requirements for most loan types to work. If the condo association has financial problems, too many renters, or pending lawsuits, your lender may not be able to approve your loan no matter how strong your application is.

Here's what I tell every client before they fall in love with a unit and write a check.

Is the Condo Project "Warrantable"? (This One Can Make or Break Your Loan)

Most buyers finance condos with conventional loans or FHA loans. Both require the condo project — the entire building or community — to meet specific guidelines, not just the individual unit.

A condo is considered warrantable when it meets Fannie Mae or Freddie Mac standards. If it doesn't, your options get limited fast, and the interest rate can go up significantly.

Key things that can make a condo non-warrantable:

• More than 35% of units are rented out (investor-heavy buildings raise flags)
• One entity owns more than 10% of the units
• The HOA is involved in active litigation
• More than 15% of owners are delinquent on HOA dues
• The project is a hotel-condo or has short-term rental restrictions

Ask your realtor for the condo questionnaire early. I review these before my clients even schedule a second showing.

What Do the HOA Finances Look Like?

A healthy HOA is one of the most underrated factors in a condo purchase. I've seen buyers close on a unit, then get hit with a $12,000 special assessment six months later because the reserve fund was almost empty.

Request the HOA's reserve study and last two years of financials. You want to see:

• Reserves funded at 10% or more (ideally higher)
• No large deferred maintenance issues (roof, elevators, plumbing)
• A clear picture of monthly HOA fees — and whether increases are expected

For example, if the HOA fee is $650/month on a $320,000 condo, that adds roughly $7,800/year to your housing costs. That affects your debt-to-income ratio and changes what you can afford.

Check the Insurance Situation — Especially in Florida

Florida is not a friendly state for condo insurance right now. After several carriers pulled out of the market, HOA master policies have gotten more expensive and, in some cases, harder to obtain.

Find out:

• What the HOA master policy covers (bare walls-in vs. all-in coverage matters)
• Whether the building is in a flood zone — and if flood insurance is required separately
• What your individual unit policy (HO-6) will cost

I've worked with buyers in South Florida where the flood insurance alone added $200–$300/month to their payment. That's real money you need to plan for before you make an offer.

How Many Units Are Owner-Occupied?

Lenders care about this ratio more than most buyers realize. If a building is mostly investors renting out units, conventional lenders may flag it. FHA has its own approved condo list — and most condos in Florida are not on it by default.

A building where 70%+ of units are owner-occupied is a strong signal — for the lender and for you as a buyer. It usually means the community is more stable and better maintained.

Next Steps: Do This Before You Write the Offer

Condos in Florida can be a great investment and a smart first purchase — but only when you go in with the right information. Before you make an offer, make sure you know the warrantability status, HOA health, insurance picture, and owner-occupancy ratio.

I help buyers with this every week. If you've found a condo and want a second set of eyes before you commit, send me a message. No pressure, no sales pitch — just honest answers so you can make a confident decision.