Condo financing in the Florida Keys involves additional requirements beyond standard mortgage lending. Understanding these requirements before making an offer saves time and frustration.
Warrantability Requirements
Fannie Mae and Freddie Mac require that condo projects meet specific criteria: limits on commercial space (typically 35% or less), owner-occupancy ratios, adequate HOA reserves, and limited single-entity ownership.
FHA and VA Approval
FHA and VA loans require the condo project to be specifically approved. This is separate from Fannie/Freddie warrantability. Not all Keys condos have this approval.
Financial Health of the Association
Lenders review the condo association reserve study, pending litigation, delinquent dues, and insurance coverage. A financially weak association can prevent your mortgage from being approved.
Keys-Specific Issues
Some Keys condos face special assessments for hurricane-resistant upgrades. Others may have limited reserves due to recent insurance increases. I can help you evaluate these factors before you make an offer.