Why are some condos hard to finance right now?

A condo mortgage is a loan on your unit, but the lender also evaluates the building as a whole. Programs like Fannie Mae and Freddie Mac review the association's finances, insurance, reserves, and any pending repairs or special assessments before they will back a loan.

When a building has deferred maintenance, unfunded reserves, or an incomplete structural inspection, the project can be flagged as too risky, and buyers who need a conventional mortgage simply cannot get one in that building.

Florida law now requires buildings of three or more habitable stories to complete a milestone structural inspection as they age and to fund the reserves a Structural Integrity Reserve Study calls for. Since January 1, 2026, associations generally cannot vote to set those reserves aside.

That is a real improvement for building safety, but it also means older buildings that deferred repairs for years now face large assessments, and those same buildings are often the ones lenders flag.

Industry reporting in 2026 found that more than a thousand condo buildings in Florida were shut out of conventional financing, and that older buildings with clean inspections and funded reserves kept financing normally while buildings that lagged sat on the market.

The result is a two-tier market: well-documented buildings sell with financing, and buildings that have not caught up often go to cash buyers at softer prices.

Before you make an offer, ask to see the milestone inspection summary, the Structural Integrity Reserve Study, the financial statements, and the meeting minutes from the past year or two. Then confirm with your lender that the building will pass its project review.

If you are looking at a building that is hard to finance, that risk is often reflected in the price. Cash buyers can sometimes get a deal there, but only if they understand what the building needs and what it will cost.

I read the association documents with you, flag what lenders will focus on, and guide you in weighing whether a building is a smart buy or a costly one.

I also connect you with lenders who understand the current condo financing rules, so you know what is possible before you fall in love with a building.