Shopping for a Brickell condo and seeing the word “warrantable” pop up? You are not alone. In Miami’s high-rise market, a building’s warrantability can shape your loan options, down payment, timeline, and even your future resale. In this guide, you will learn what warrantable means, how condo questionnaires work, common Brickell hurdles, and the steps to take before you make an offer. Let’s dive in.
Warrantable condo, explained
A warrantable condo is a building that meets the eligibility standards used by major mortgage investors, most notably Fannie Mae and Freddie Mac. When a building is warrantable, lenders can offer conventional conforming loans on units in that project.
A non-warrantable condo fails one or more of those standards. You can still buy the unit, but loan choices are fewer and costs are often higher. Some buyers pivot to portfolio or jumbo loans, or use cash if financing is not available.
Why it matters in Brickell
Conventional conforming loans generally offer lower rates and lower down payments. A warrantable Brickell tower usually opens this path for you.
If a building is non-warrantable, expect fewer lender options, tighter underwriting, and often a higher down payment. Many lenders look for 20 to 30 percent down or more for non-warrantable projects. Your monthly costs and closing timeline can change as a result.
Brickell has many luxury high-rises, mixed-use buildings with retail podiums, and investor-owned units. Short-term rental activity and condo-hotel features can be present. These characteristics often receive extra scrutiny during warrantability reviews.
What lenders review
The condo questionnaire
Lenders request a condo questionnaire from the association or management company, then compare answers with investor rules. The questionnaire typically covers:
- Association info, number of units, and occupancy mix
- Owner-occupancy percentage and rental policies, including short-term rentals
- Single-entity ownership concentration
- Amount and type of commercial space in the building
- Budget, reserve balances, and whether a reserve study exists
- Monthly fees and what the master insurance policy covers
- Special assessments, planned or active
- Delinquency rates and any foreclosures
- Pending or threatened litigation and potential exposure
- Insurance details, including wind and flood coverage and deductibles
- Developer control status and recent turnover
Supporting documents often include the budget, financial statements, reserve study, insurance certificate, governing documents, and meeting minutes.
Typical timeline
- Day 0 to 3: You apply for a mortgage and the lender confirms the property is a condo.
- Day 3 to 10: The lender orders the condo questionnaire. Management returns the form and documents.
- Day 10 to 20: Underwriting reviews the file and may request clarifications. If litigation or assessments need more detail, add time. Complex cases can extend several weeks or more.
Common outcomes
- Approved for a conventional conforming loan
- Conditionally approved with lender overlays, such as a higher down payment
- Referred to FHA or VA, which require separate condo approvals
- Shifted to a portfolio or jumbo product, which can carry tighter terms
- Denied, which may push you toward cash or a different property
Common Brickell hurdles
- High investor or rental concentration. Lenders watch investor-heavy buildings closely and may limit conventional loan options.
- Short-term rentals or condo-hotel features. Hotel-like operations and frequent short stays can make a project ineligible for conventional loans.
- Developer control or concentrated ownership. Extended developer control or one owner holding many units raises risk for investors.
- Significant commercial space. Large retail or office components can trigger additional review or ineligibility.
- Association financial weakness. Low reserves, high dues delinquencies, or repeated special assessments are red flags.
- Pending or active litigation. Material lawsuits often delay or block financing until resolved or documented with acceptable risk.
- Insurance gaps or high deductibles. Inadequate hazard, wind, or flood coverage can derail a loan.
Buyer action plan
Before you make an offer
- Ask your lender early if the building appears warrantable for a conventional loan and whether the lender has any special rules for high-rise condos.
- Request a completed condo questionnaire in advance, or make your offer contingent on satisfactory condo approval and documents.
- Confirm owner-occupancy and rental policies, including whether short-term rentals are allowed.
- Review the latest reserve study and current reserve balances.
- Ask for details on any special assessments and a summary of litigation, if any.
- If you plan to use FHA or VA, check whether the building has the required approval.
- If the building looks non-warrantable, discuss portfolio or jumbo options and how that affects your rate and down payment.
During loan and escrow
- Share the property address and HOA contact with your lender on day one.
- Track the questionnaire status and follow up with management if timing slips.
- Provide any requested documents fast, such as insurance certificates or meeting minutes.
- Expect clarifying questions about litigation, special assessments, or commercial space.
If the building is non-warrantable
- Consider portfolio or jumbo products and prepare for a larger down payment, often in the 20 to 30 percent range or higher.
- Evaluate the total cost of ownership with the higher rate and fees.
- If FHA or VA was your goal, confirm whether separate approval is possible. Some buildings will not qualify.
Smart budgeting and resale
Warrantability affects your budget today and your buyer pool tomorrow. A non-warrantable building can mean a higher down payment, a higher rate, or more time to close. On resale, fewer buyers may qualify for conventional loans, which can influence marketability and pricing.
Work with a Brickell condo advisor
Condo financing in Brickell is doable with the right plan. A local advisor can spot warrantability risks early, coordinate the condo questionnaire, and keep your deal on track with the lender and association. If you want a calm, data-informed path to your Brickell purchase, connect with a trusted guide. Reach out to Christopher Ulloa for concierge-level support in English or Spanish.
FAQs
What is a warrantable condo in Brickell?
- A warrantable condo meets investor standards, most notably Fannie Mae and Freddie Mac guidelines, which allows lenders to offer conventional conforming loans on units in that building.
How is a condo’s status determined by lenders?
- Lenders review a condo questionnaire and supporting documents from the association, then compare them to investor rules to decide if the project is eligible.
Can I use FHA or VA for a Brickell condo?
- Possibly, but FHA and VA require their own condo approvals. Some buildings qualify while others do not, so check your building’s status early with your lender.
How long does condo review usually take in Miami?
- Expect about 2 to 3 weeks for ordering and reviewing the questionnaire, though complex issues like litigation or assessments can add several weeks.
What makes a Brickell condo non-warrantable?
- Common issues include high investor concentration, short-term rentals or condo-hotel features, significant commercial space, litigation, low reserves, and insurance gaps.
What if the HOA has a special assessment?
- Lenders will review the assessment details and the association’s finances. Material assessments can slow underwriting or lead to denial if risk is high.
Will I need a bigger down payment for non-warrantable?
- Often yes. Many lenders look for 20 to 30 percent down or more for non-warrantable projects, while warrantable condos can qualify for lower down payments.
How do short-term rentals affect financing?
- Condo-hotel models or frequent short stays can disqualify a building from conventional loans, so review rental policies and occupancy data early.
What documents should I request from the HOA?
- Ask for the completed condo questionnaire, budget and financials, reserve study, insurance certificate, governing documents, and recent meeting minutes.
Is developer control a financing concern?
- Yes. Lenders scrutinize projects still under developer control or with one entity owning many units, which can limit conforming loan options.
