# Warrantable vs Non-Warrantable Condos in Miami

Published: 2026-08-26 · Updated: 2026-10-22 · Author: Jeremías Kastensmidt

_Fannie Mae's project rules decide whether a Miami condo building qualifies for a conventional loan, whatever your credit. Here is what they test and how 806 buildings score._

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 {{building: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](/guides/how-to-read-a-miami-condo-listing) explains what to look for.
4. If the building is non-warrantable, line up a portfolio lender and the larger down payment early.

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*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.*


## Frequently asked questions

**What single-owner limit makes a Miami condo non-warrantable?**

Under Fannie Mae's rules, in a building of 21 or more units one entity may own no more than 20% of the units.

**How many Miami condo buildings have an FHA approval?**

Own.Miami's records show 3 of the 806 condo buildings it tracks with an FHA condo project approval and 20 with a VA approval, as of October 13, 2026.

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Source: Own.Miami — https://own.miami · data as of 2026-10-22
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