Buying a Condo in Miami: What to Know Before You Make an Offer

Condos are a large part of Miami’s housing market, from older mid-rise buildings to new towers along the water. Financing a condo, though, involves more than qualifying yourself. The lender also has to be comfortable with the building.

Here is what that means and what to check before you commit.

Warrantable vs. non-warrantable condos

Most conventional condo loans follow guidelines set by Fannie Mae and Freddie Mac, which define the kinds of buildings they will finance. A condo project that meets those guidelines is often called “warrantable.” One that does not is called “non-warrantable.”

Common reasons a building may be considered non-warrantable include:

• A single person or entity owns a large share of the units
• The building operates like a hotel, with short-term rental programs or a front-desk rental pool
• A significant portion of the building is commercial space
• The association is involved in certain types of litigation
• Many owners are behind on their association dues
• Reserves are inadequate, or the building has significant deferred maintenance or unresolved critical repairs

A non-warrantable condo is not impossible to finance, but your options narrow. You may need a larger down payment and a different loan program, and pricing is often different. FHA and VA loans have their own building approval processes as well, so a building that works for one loan type may not work for another.

The takeaway: confirm the building’s status early, ideally before you make an offer.

The HOA questionnaire

To evaluate the building, lenders usually send the condo association a questionnaire. It asks about the association’s budget, reserves, insurance, owner occupancy, delinquencies, litigation, commercial space and any known structural or safety issues. Many lenders also request the annual budget, insurance declarations and other documents.

Associations or their management companies often charge a fee to complete the questionnaire, and turnaround times vary. Building this step into your timeline, and choosing a rate lock long enough to cover it, helps you avoid last-minute pressure.

Florida’s post-Surfside condo safety laws

After the 2021 collapse of Champlain Towers South in Surfside, Florida passed major condo safety legislation in 2022, commonly referred to as SB 4-D. The legislature has amended these rules in later sessions, including in 2024 and 2025, and several details and deadlines have changed. In general terms, the law:

• Requires milestone structural inspections for condo and cooperative buildings of three stories or more once they reach a certain age, with periodic inspections after that
• Requires those buildings to complete structural integrity reserve studies, often called SIRS, covering key structural and building components
• Limits the ability of associations to waive or reduce reserve funding for those components

For buyers, this has two practical effects. First, you can learn more than ever about a building’s condition. Second, some associations have had to raise dues or approve special assessments to fund repairs and reserves.

Because the rules continue to evolve, ask the association about the building’s current status rather than relying on general summaries, including this one. If you have legal questions, a Florida real estate attorney can help.

Special assessments

A special assessment is a one-time or temporary charge to owners, on top of regular dues, to pay for a specific project or shortfall. Assessments can be significant, especially in older buildings facing structural work.

They matter for financing too. Lenders look at what the assessment is for, whether it relates to safety or structural issues, and how it will be paid. An approved assessment can also increase your monthly housing costs, which affects how much you qualify for.

Your purchase contract can address who pays assessments that are approved before closing. Discuss this with your agent before you sign.

Questions to ask before you make an offer

Before you make an offer on a Miami condo, try to get clear answers to these questions:

• Has the building completed its milestone inspection, if one is required, and what did it find?
• Has the association completed its structural integrity reserve study, and is it funding reserves accordingly?
• Are any special assessments approved, proposed or under discussion?
• How have monthly dues changed over the past few years, and are increases expected?
• Is the association involved in any litigation?
• What does the master insurance policy cover, and what will you need to insure yourself, typically through an HO-6 policy, including flood coverage where required?
• Are there rental restrictions or an approval process for new owners?
• Is the building eligible for the loan type you plan to use?

Minutes from recent board meetings are often one of the best sources of information about what is coming.

Florida law also gives condo buyers a period to review the association’s documents after receiving them, during which they may be able to cancel the contract. The length and details depend on whether you are buying from a developer or from an individual owner, so ask your agent or attorney how it applies to your contract.

Match the loan to the building

A smooth condo purchase starts with matching the loan to the building. For more on programs and building requirements, see our condo financing page. When you estimate your budget, use our mortgage calculator and remember to include association dues and insurance in your monthly payment.

Considering a condo? Book a 30-minute goal consultation and we will talk through the buildings you are looking at, the loan options that may fit and a realistic timeline. Get started here.