Warrantable vs Non-Warrantable Condos in Miami

A warrantable condo is one in a building that meets Fannie Mae or Freddie Mac project standards, so a lender can write a conventional loan on it; a non-warrantable condo is in a building that fails one or more of those standards. The test is applied to the building, not to you, and in Miami it decides whether you can buy with a normal mortgage at all.

What the agencies check

Fannie Mae's Selling Guide (section B4-2.1-03, updated August 5, 2026) lists the project characteristics that make a building ineligible. The ones Miami buyers run into most:

• Hotel-style operation. A project managed and operated as a hotel or motel is ineligible even when the units are individually owned, and advertised daily or short-term rental rates are a red flag for reviewers.
• One owner holding too many units. In a building of 21 or more units, a single entity may own no more than 20% of them.
• Too much commercial space. Non-residential space may not exceed 35% of the project.
• Pending litigation naming the association, with limited exceptions for minor or insured matters.
• Critical repairs. A building that needs critical repairs or has significant deferred maintenance is ineligible, and a special assessment tied to an unfinished critical repair keeps it that way.

That last group grew in importance after the 2021 Surfside collapse: in October 2021 Fannie Mae issued temporary rules (Lender Letter LL-2021-14) making buildings with significant deferred maintenance ineligible, and the critical-repair test now sits in its Selling Guide.

What it means for your down payment

In an eligible building, Fannie Mae's eligibility matrix allows a fixed-rate purchase loan of up to 97% of the price for a one-unit principal residence (for first-time buyers or through HomeReady; 95% otherwise) and up to 85% for an investment property. In a non-warrantable building those programs are off the table. Buyers either pay cash or use a portfolio or non-QM lender that keeps the loan on its own books, and those loans typically come with larger down payments and higher rates.

How Miami buildings actually score

Own.Miami reads the mortgages recorded with the Miami-Dade Clerk and pairs each purchase loan with the deed it financed. Across the 806 condo buildings we track, as of October 13, 2026:

• 72 buildings rate strong on our Financeability Index and 224 rate good: regulated lenders are actively writing loans there.
• 181 rate limited and 182 rate cash, meaning recorded bank purchase loans are rare or absent.
• 147 have too few recent sales to rate.
• Where a down payment could be measured, regulated lenders accepted 10% or less in 112 of 368 buildings.

Government programs are thinner still: our records show an FHA condo project approval for 3 of the 806 buildings and a VA approval for 20.

At Bay House in Edgewater, for example, 55% of recorded sales in the last 12 months were financed with a regulated lender's purchase loan. Each building page, such as Bay House, shows the same Financeability reading, which you can check before you make an offer.

Before you sign a contract

1. Look up the building's Financeability tier and recent lending on Own.Miami.
2. Ask your lender to review the project, not just your credit, before you are under contract. The lender will usually send the association a condo questionnaire.
3. Read the listing for "cash only", hotel programs or short-term rental language, which often signal an ineligible building. Our listing guide explains what to look for.
4. If the building is non-warrantable, line up a portfolio lender and the larger down payment early.

This guide is general education, not legal, tax or financial advice. Agency rules change; confirm eligibility for a specific building and loan with your lender.