Buying a condo in Boca Raton means two underwriting reviews: yours and the building’s. A single-family home loan looks at your credit, income, and the appraisal. A condo loan adds a project-level review that can stall or stop a closing even when your file is clean.

Why Condo Approval Is Different

Fannie Mae, Freddie Mac, FHA, and VA all require the condominium project to meet eligibility standards before they will insure or guarantee a loan on any unit in that building. The lender orders a condo questionnaire (Fannie Mae Form 1076 / Freddie Mac Form 476) that the HOA or management company completes. The answers determine whether the project is “warrantable” — eligible for conventional financing — or “non-warrantable,” which pushes borrowers into portfolio or non-QM loans with higher rates, larger down payments, and shorter terms.

Since the 2021 Surfside collapse, Florida condos face extra scrutiny. State laws (SB 4-D, SB 154, HB 913) now mandate milestone structural inspections, Structural Integrity Reserve Studies (SIRS), and mandatory reserve funding for buildings three stories or taller. Lenders treat those requirements as part of the project review.

The Condo Questionnaire: What the Lender Asks

The standardized questionnaire covers the building’s finances, physical condition, ownership, insurance, and legal status. A single disqualifying answer can make the entire project ineligible. Here are the most common friction points:

Reserves and Budget

Minimum 10% reserve allocation: The annual budget must allocate at least 10% of assessment income to replacement reserves. Fannie Mae’s LL-2026-03 raises this to 15% for applications dated on or after January 4, 2027.
Reserve study age: A reserve study older than three years is a red flag.
Florida SIRS compliance: For buildings three stories or taller, the Structural Integrity Reserve Study must be complete and reserves must be funded per its recommendations — no more reserve waivers for structural components.

Delinquency

More than 15% of units 60+ days past due on HOA assessments disqualifies the project.

Insurance

Master property insurance must provide 100% replacement-cost coverage.
Deductible cannot exceed 5% of the coverage amount.
Fidelity bond coverage is required for associations with 20+ units.

Litigation

Pending litigation involving safety, structural soundness, or habitability is an automatic fail.
Other litigation is evaluated case by case but often requires a legal opinion letter.

Deferred Maintenance and Critical Repairs

Significant deferred maintenance or unsafe conditions not yet repaired disqualify the project.
Fannie Mae’s LL-2026-03 introduced a hard threshold: if unfunded critical repairs exceed $10,000 per unit, the project is ineligible. A 100-unit building with a $1.2 million unfunded roof replacement ($12,000/unit) fails.

Ownership and Occupancy

Single-entity ownership: One owner holding more than 20% of units in a 21+ unit project (or more than 2 units in a 5–20 unit project) is a fail.
Investor concentration: Fannie Mae and Freddie Mac eliminated the 50% investor cap in 2026, but FHA still requires at least 50% owner-occupancy for project approval.

Commercial Space

Non-residential space exceeding 35% of total floor area (25% for FHA) disqualifies the project.

Condotel Features

Hotel-like operations, mandatory rental pooling, or on-site check-in desks make the project non-warrantable.

Florida-Specific Requirements (Post-Surfside)

If you are buying in a building three stories or taller, the association must have:

Milestone inspection: Completed by a licensed engineer or architect. Coastal buildings (within 3 miles of coastline) by age 25; inland by age 30. Re-inspection every 10 years. Buildings 30+ years old as of July 1, 2022, had a December 31, 2024 deadline (with some extensions into 2025).
Structural Integrity Reserve Study (SIRS): Identifies structural components (roof, load-bearing walls, foundation, fireproofing, plumbing, electrical, waterproofing, windows, doors) and calculates required reserve funding. Initial deadline was December 31, 2024 for most buildings; updates every 10 years.
Mandatory reserve funding: Starting with budgets adopted on or after December 31, 2024, associations can no longer waive reserves for SIRS-identified components.

Lenders request the milestone inspection report, the SIRS, and two years of budgets showing reserves aligned to the SIRS recommendations. Missing or incomplete documents are a common cause of delays.

Loan Program Differences

Conventional (Fannie Mae / Freddie Mac)

Full Review now required for all projects over 10 units (Limited Review retired August 3, 2026 per LL-2026-03).
Form 1076/476 plus Form 1076A addendum for building safety/deferred maintenance.
10% reserve minimum (15% starting Jan 2027), $10k/unit critical repair threshold.

FHA

Project must be on HUD’s approved condo list, or borrower can pursue Single-Unit Approval (spot approval) for up to 10% of units in an otherwise eligible building.
Requires 50%+ owner-occupancy, 10% reserve allocation, 15% delinquency cap, 35% commercial space cap.
Single-Unit Approval does not fix a troubled building — it only solves a paperwork gap.

VA

Entire development must be on the VA-approved condo list.
Buildings already FHA-approved may qualify for expedited VA review.
Approval can take several months; plan ahead.

What “Non-Warrantable” Means for You

If the building fails any of the above, the condo is non-warrantable. Conventional, FHA, and VA financing are off the table. Options narrow to:

Portfolio loans from lenders who keep the loan on their books.
Non-QM loans with higher rates, 20–25%+ down payments, and often shorter terms (5/7-year ARMs, balloons).
Cash.

Non-warrantable status also hurts resale value and limits your buyer pool later.

How to Avoid Surprises

Ask for the condo questionnaire early. Request the completed Form 1076/476 and 1076A from the listing agent or HOA before you write an offer.
Check the FHA and VA approved lists. Search HUD’s database and the VA’s condo lookup. If the building isn’t listed, assume extra time and uncertainty.
Verify Florida compliance. For 3+ story buildings, confirm milestone inspection, SIRS, and reserve funding are current.
Work with a local mortgage broker. A broker who knows Boca Raton and Palm Beach County buildings can often pre-screen projects before you spend money on an appraisal.

Frequently Asked Questions

Can I get a conventional loan on a condo with an expired reserve study?

A reserve study older than three years is a common reason for project ineligibility. The association will need to commission an updated study before the loan can proceed.

What if the HOA refuses to complete the questionnaire?

The loan cannot move forward. Some associations are reluctant due to liability concerns, but the form is standard and the lender requires it. A broker can sometimes help facilitate the conversation.

Does FHA Single-Unit Approval work for any building?

No. The building must still meet FHA’s owner-occupancy, delinquency, reserve, insurance, and litigation standards. Single-Unit Approval only waives the requirement that the entire project be pre-approved.

My building has a special assessment for roof repairs. Is that a deal-killer?

Not necessarily. A funded special assessment with a clear repayment plan is often acceptable. Unfunded critical repairs exceeding $10,000 per unit are the problem under current Fannie Mae rules.

Are there condos in Boca Raton that are pre-approved?

Some buildings have current Fannie Mae, FHA, or VA project approvals. A local broker can often identify them quickly and save you weeks of back-and-forth.

Next Steps

Condo financing adds a layer of complexity, but it is manageable when you know what to look for. The building’s financial health, insurance, maintenance status, and Florida compliance matter as much as your own qualifications.

If you are considering a condo purchase in Boca Raton or Palm Beach County, get pre-approved first. We can review the project’s eligibility early so you don’t waste time on a building that won’t finance. You can also estimate your payment or explore conventional loan options.