South Florida has more condos for sale than it has had in years, and plenty of them are in buildings a regular bank won't lend on. That doesn't mean the deal is dead. It means the building is non-warrantable, and you need a different loan. Here's why it's happening in Miami-Dade, Broward and Palm Beach, what to check before you make an offer, and the financing that still closes.
Buyers have room. Here are the latest county numbers from MIAMI REALTORS for condos and townhouses:
| Condos and townhouses, July 2026 | Miami-Dade | Broward |
|---|---|---|
| Median sale price | $400,000 | $255,000 |
| Change from July 2025 | Down 1.5% | Down 3.8% |
| Months of supply | 12.0 | 10.0 |
| Active listings | 11,324 | 9,533 |
| Median days to contract | 86 | 86 |
Source: MIAMI REALTORS county market summaries, July 2026.
About six months of supply is the usual line between a balanced market and a buyer's market. Miami-Dade and Broward are both well past it. That gives buyers time and negotiating room. It also means a lot of the units on the market are in older towers, and older towers are where conventional financing most often falls apart.
A condo is warrantable when the whole building meets the rules set by Fannie Mae and Freddie Mac, the two agencies that buy most conventional loans. When a building fails even one rule, a lender can't sell the loan to them, and most banks walk away.
The unit itself can be perfect. The problem sits at the building level: the association's money, insurance, ownership mix, or legal status. You can't renovate your way out of it. You either wait for the association to fix it, or you use a loan that doesn't depend on the rule the building failed. Our Florida non-warrantable condo guide goes through every agency rule in detail.
The buildings are older, and the inspections now have teeth. Miami-Dade and Broward required 40-year safety recertifications long before the rest of the state. After the 2021 Surfside collapse, Florida made structural milestone inspections statewide: buildings three or more habitable stories tall get one by the end of the year they turn 30, then every 10 years. Local building departments can require the first one at 25 years.
Reserves have to be real. Those same buildings must complete a Structural Integrity Reserve Study, and for budgets adopted on or after December 31, 2024, boards can't waive reserves for structural items like the roof and load-bearing walls. When an inspection finds deferred repairs and the reserves are thin, the result is a big special assessment, sometimes a lawsuit, and often a building that fails agency review until the work is funded and done.
Insurance is the newest trap. For conventional loan applications dated on or after July 1, 2026, Fannie Mae caps the per-unit deductible on a condo master policy at $50,000. Plenty of coastal associations raised wind deductibles to keep premiums down. If the master policy's per-unit deductible is over $50,000, the building can be non-warrantable on that alone, even if everything else is clean.
Reviews got stricter. Fannie Mae retired its quicker Limited Review for loan applications dated on or after August 3, 2026. More condo loans now get a Full Review, so problems that used to slip through are getting caught.
Some good news for South Florida buyers. In March 2026 Fannie Mae dropped its 50% investor-concentration limit for existing, completed buildings. A Fort Lauderdale or Miami Beach building full of seasonal renters no longer fails just because fewer than half the owners live there. Fannie also stopped requiring a separate approval for new attached condo projects in Florida.
Any one of these can make a building non-warrantable for a conventional loan:
Ask for these documents early, ideally before you sign: the condo questionnaire, the current budget and reserve balance, the milestone inspection, the Structural Integrity Reserve Study, the master insurance declaration page, and any special assessment notices from the last two years. Read the per-unit deductible line on the insurance page, not just the premium.
HOA dues, special assessments and your HO-6 policy all hit the payment. Run the numbers on the unit you're looking at.
Yes. Banks that sell their loans to Fannie Mae and Freddie Mac can't lend on these buildings, but other lenders can. They set their own condo rules, so a building a bank turned down can still get financed. They still look at the building's reserves, insurance, lawsuits and condition, so not every building qualifies.
What changes for you: plan on a larger down payment and higher pricing than a standard loan. The exact terms depend on the building and your finances, and I'll show you the real numbers before you make an offer.
Buying to rent it out? Some loans qualify on the unit's rent instead of your tax returns. Our DSCR loan page explains how that works.
Paying cash? Some buyers pay cash now and refinance once the building finishes its repairs and qualifies for a standard loan again.
The key is matching the building to the right lender before you're under contract, not after the appraisal comes back. Send me the building name and I'll tell you whether it can be financed and what it will take.
In South Florida, the condo payment is more than principal and interest. Association dues often go up when a building starts funding full reserves, and a special assessment can add a big monthly or lump-sum cost. If the master policy uses a per-unit deductible, that risk lands on you, so price an HO-6 policy that covers it and put the premium in your budget from day one. Your lender will tell you the exact HO-6 coverage it requires. Our guide to getting insurance numbers before you offer walks through the order.
What makes a South Florida condo non-warrantable?
A building fails at least one Fannie Mae or Freddie Mac project rule. Common causes in South Florida are unfunded repairs from a milestone inspection or reserve study, pending litigation, high HOA delinquency, a single owner holding more than 20% of units, commercial space over 35%, and a master policy with a per-unit deductible over $50,000.
Can you get a mortgage on a non-warrantable condo in Miami or Fort Lauderdale?
Yes. Some lenders set their own condo rules and can lend where a bank can't, including loans for investors that qualify on rental income. Expect a larger down payment and higher pricing than a standard loan. Approval depends on the building and your file.
What is the $50,000 condo deductible rule?
For conventional loan applications dated on or after July 1, 2026, Fannie Mae caps the per-unit deductible on a condo master policy at $50,000. A building with a higher per-unit deductible can be non-warrantable on that rule alone.
When does a South Florida condo building need a milestone inspection?
Under Florida law, condo buildings three or more habitable stories tall need a structural milestone inspection by the end of the year they turn 30, then every 10 years. A local building department can require the first one at 25 years.
Does a high number of renters make a condo non-warrantable?
Not for existing, completed buildings anymore. In March 2026 Fannie Mae retired its 50% investor-concentration limit for those buildings, so a rental-heavy building no longer fails on that alone.
How do I find out if a condo is warrantable before I make an offer?
Ask for the condo questionnaire, budget, reserve study, milestone inspection, master insurance declaration page and recent special assessment notices, then have a lender review them before you sign.
Florida mortgage broker specializing in coastal and waterfront property, including condos in Miami-Dade, Broward, Palm Beach and the Keys. I review the building's documents and insurance before you write an offer, then match the building to a lender whose rules fit. Licensed in Florida.
Send me the building name and the unit. I'll review the documents and insurance, tell you which lenders fit the building, and show you the real monthly cost. 30 minutes.