Florida Non Warratable Condo Lenders
Steps to determine if a Florida Condo is Warrantable or Non Warrantable
There is no 1 location that lists Florida warrantable or non-warrantable condo complexes or projects. However, there are several steps that can be taken to determine the eligibility of a Florida condo assocation and include:
1. Ask the Florida property management company or the realtor selling agent if the complex is condo considered “Warrantable.”
2. See if the Florida condominium complex has met Warrantable Standards:
- FHA – https://entp.hud.gov/idapp/html/condlook.cfm
- Fannie Mae – https://www.fanniemae.com/singlefamily/project-eligibility
- VA – https://vip.vba.va.gov/portal/VBAH/VBAHome/condopudsearch
3. Have your Florida Mortgage lender provide you with a Condo Certification below also known as the Florida Condo Questionnaire to be completed by the HOA or Property Management Company. Note that many HOA’s and Companies charge a fee to complete a Condo Questionnaire Certification.
Florida Non Warratable Condo Lenders Reserve Requirements
LTV’s > 80% or Condo’s less than 90% closed and sold or Foreign Nationals:
HOA must have a reserve account > 10% of the annual budget
< 15% of units can have delinquent HOA dues
< 10% of HOA dues compared to budget can be delinquent
LTV’s 80% – 70%:
HOA must have reserve account > 5% of the annual budget
< 15% of units can have delinquent HOA dues
< 10% of HOA dues compared to budget can be delinquent
LTV’s < 70%
No reserve accounts required
< 15% of units can have delinquent HOA dues
< 10% of HOA dues compared to budget can be delinquent
|
FLORIDA NON UNWARRANTABLE CONDO CONDO QUESTIONNAIRE ANSWER KEY FLORIDA CONDO QUESTIONNAIRE ANSWER KEY |
|
| 1 | Project is: |
| Condo and PUD‘s are allowed. HOA certification not needed for a PUD | |
| 2 |
Unit is: Attached and Detached projects are allowed |
| 3 | Units are: |
| If Leasehold, project is ineligible | |
| 4 | Unit owners in control of HOA? |
|
Developers or unit owners may be in control. If Developer is still in control, condo is considered new and requires a FNMA PERS approval |
|
| 5a | Are all units complete? Are all common elements and amenities with the subject phase complete? |
| All units, common areas, and recreational facilities must be 100% complete for the subject phase | |
|
6a |
Is the project a legally phased project? If yes, is the project subject to additional phasing / annexation / add-ons? |
| Additional phasing and add–ons are allowed. Condo is considered new and requires PERS approval | |
| 7a | Is the project a conversion of an existing building? If yes, was conversion a full gut-rehabilitation? |
| Condo conversions that are at least 3 years old are eligible | |
| 8 | Project pre-sale and owner occupancy questions are for residential units only: |
|
The date when first units were made available is used to determine if the project is selling at an acceptable rate |
|
| 9a | How many units are over 30 days delinquent? If units are delinquent, what is the balance owed? |
| If more than 15% of the total units or 10% of the total budget are greater than 29 days delinquent, project is ineligible. | |
| 10a | Total income budgeted this year, total reserves budgeted: |
| At least 10% of the total budget should be allocated for reserves | |
| 11 | Is project part of a “Master” or “Umbrella” Association? |
| If yes, additional information may be required for eligibility | |
| 12 | Does any one person or entity own more than one unit? |
| No single entity may own more than 10% of the total units | |
| 13 | Are there any pending or outstanding special assessments? |
| If yes, obtain details and determine the impact on all units and marketability | |
| 14 | Is the HOA involved in any litigation, mediation, arbitration, or other dispute resolution process? |
| If yes, obtain details (attorney opinion letter) and determine risk. If litigation affects the structure or marketability , the project in ineligible | |
| 15 | Are there any adverse environmental factors affecting the project as a whole or as individual units? |
| If yes, the appraiser must address the impact on value and marketability | |
| 16 | Does the homeowners’ association have a reserve fund separate from the operating account? |
| At least 10% of the total budget should be allocated for reserves | |
|
17 |
Do the project legal documents include any restrictions on sale which would limit the free transferability of title? |
| If yes, the only restrictions allowed are age restrictions | |
|
18 |
Is the unit part of a legally established condominium project, in which common areas are owned jointly by unit owners? |
| If no, project is ineligible | |
| 19a | Do unit owners have sole ownership & exclusive right to project facilities? |
| If no, project is ineligible | |
| 19b | Are any project facilities (parking, recreation facilities) leased to the HOA? |
| If yes, project is ineligible | |
| 20a | Does the project consist of manufactured housing units? |
| If yes, project is ineligible | |
| 20b | Are any units less than 400 square feet? |
FLORIDA NON UNWARRANTABLE CONDO CONDO QUESTIONNAIRE ANSWER KEY
FLORIDA CONDO QUESTIONNAIRE ANSWER KEY
Unit is:
Attached and Detached projects are allowed
Developers or unit owners may be in control. If Developer is still in control, condo is considered new and requires a
FNMA PERS approval
6a
Is the project a legally phased project? If yes, is the project subject to additional phasing / annexation / add-ons?
The date when first units were made available is used to determine if the project is selling at an acceptable rate
17
Do the project legal documents include any restrictions on sale which would limit the free transferability of title?
18
Is the unit part of a legally established condominium project, in which common areas are owned jointly by unit
owners?
| If yes, project is ineligible | |
|
20c |
Are any of the units used for “live-work” (e.g., the unit owner lives in a loft area and runs a business on the ground floor)? |
| If yes, project is ineligible | |
|
20d |
Is the project a Continuing Care Retirement Community or Life Care Facility where residents sign long–term contracts for housing, medical, assisted-living, and other services? |
| If yes, project is ineligible | |
|
21 |
If a unit is taken over in foreclosure or deed-in-lieu, is the lender responsible for delinquent HOA dues? |
|
If yes, the mortgagee may not be responsible for more than the greater of 6 months ‘ or the maximum amount permitted under applicable state law |
|
| 22 | Does the property operate as a resort hotel; renting units on a daily basis? |
| If yes, only allowed on a case by case basis with prior management review and approval | |
| 23 | Is any part of the project used for commercial purposes? |
| If yes, only allowed on a case by case basis with prior management review and approval | |
|
24 |
Do the project legal documents or local zoning limit the amount of time the owners can live in their unit? |
| If yes, project is ineligible | |
| 25 | HOA is named insured on master insurance policy? |
| If no, project is ineligible | |
| 26 | Are common elements / limited common elements insured to 100% replacement cost? |
| If no, project is ineligible | |
| 27 | Are units or common improvements located in a flood zone? |
| If yes, flood insurance is required | |
| 28 | Is the HOA insured for general liability? |
| If no, project is ineligible | |
| 29 | Does the HOA provide hazard insurance coverage for the interior (walls-in) of the condominium unit? |
| If no, the borrower must obtain a separate HO-6 policy | |
| 30 | Is the HOA insured for Fidelity Bond? |
| Fidelity bond coverage is required for projects over 20 units , must be $1 million per occurrence and must be at least equal to the greater of 3 months HOA dues or reserves or minimum required by state law. | |
|
31 |
Minimum number of days required for written notification to be given to HOA or insurance trustee before any substantial changes or cancellation of the project coverage. |
| Minimum of 10 days required | |
|
32 |
We certify that the right of first refusal does not adversely impact the rights of a mortgage or its assignee to foreclose or take title to a condo unit pursuant to the remedies in the mortgage; accept a deed or assignment in lieu of foreclosure in the event of default by a mortgagor; and sell or lease a unit acquired by the mortgagee or assignee. |
| If no, project is ineligible |
20c
Are any of the units used for “live-work” (e.g., the unit owner lives in a loft area and runs a business on the
ground floor)?
20d
Is the project a Continuing Care Retirement Community or Life Care Facility where residents sign long–term
contracts for housing, medical, assisted-living, and other services?
21
If a unit is taken over in foreclosure or deed-in-lieu, is the lender responsible for delinquent HOA dues?
If yes, the mortgagee may not be responsible for more than the greater of 6 months ‘ or the maximum amount permitted under applicable state law
24
Do the project legal documents or local zoning limit the amount of time the owners can live in their unit?
31
Minimum number of days required for written notification to be given to HOA or insurance trustee before any
substantial changes or cancellation of the project coverage.
32
We certify that the right of first refusal does not adversely impact the rights of a mortgage or its assignee to
foreclose or take title to a condo unit pursuant to the remedies in the mortgage; accept a deed or assignment in lieu of foreclosure in the event of default by a mortgagor; and sell or lease a unit acquired by the mortgagee or assignee.
