If you have your eye on a Lighthouse Point condo, you have probably heard that financing is tougher today. You are not imagining it. Recent Florida law changes and stricter lender rules have reshaped how mortgages work for many condo buildings. The good news is that you can still buy or sell with confidence if you know what to check and when to act. Let’s dive in.
Florida condo reforms explained
Florida enacted new building safety rules after Surfside. The state now requires milestone structural inspections and Structural Integrity Reserve Studies (SIRS) for many multi‑story condos. These rules increase transparency, set reserve funding expectations, and make it harder for associations to delay critical repairs. You can review key deadlines and updates on the Florida DBPR’s official timeline and guidance at the Division of Condominiums website: DBPR condo law timeline.
Lawmakers also added flexibility in 2024 and 2025, including HB 913 that became effective July 1, 2025. Those updates extended some timelines and allowed new funding tools, which can help associations complete required work and maintain financing options.
Why this impacts your loan
Lenders and investors now look closely at a building’s reserves, insurance, and structural reports before approving unit mortgages. Fannie Mae and Freddie Mac tightened project reviews, and a building that does not meet standards can be marked “unavailable,” which blocks most conforming loans. You can see what lenders look for in Fannie’s project review guidance: Fannie Mae project eligibility.
FHA loans still work in many cases, but the building must be FHA‑approved or qualify for a single‑unit approval under strict criteria. If you need this path, verify status early using FHA resources: FHA condominium approval basics. Rising insurance costs also affect eligibility because inadequate coverage can disqualify a project. For context on insurance pressures, review this industry summary: Florida condo insurance and SB 4‑D implications.
Common non‑warrantable triggers
- Missing or incomplete milestone inspection or SIRS when required.
- Reserve funding below lender guidelines or no plan to fund near‑term repairs.
- Large special assessments tied to safety or structural items that are not yet resolved.
- Insurance shortfalls or very high deductibles.
- Lawsuits that could impact association finances.
- High HOA delinquency or unusual ownership concentrations.
Lighthouse Point local picture
Lighthouse Point has many low and mid‑rise condos built in the 1960s through the 1980s. As these buildings reach inspection milestones, expect more engineering reports and capital planning. Smaller associations can face larger per‑unit assessments to fund major work. Combined with Florida’s insurance costs, that can make traditional financing harder in certain buildings. For insurance market context, see Insurance Journal’s Florida coverage.
Broward County historically used a 40‑year recertification program, but the statewide milestone system now controls. Local building departments can set earlier timelines for coastal proximity. Always confirm the schedule for your building with the association and local authorities, and review the DBPR’s timeline.
Ask for these documents
Request these items upfront to test financing and avoid surprises:
- Milestone inspection and SIRS. Confirms building condition and required capital projects.
- Current and prior HOA budgets and reserve study. Lenders look for adequate reserves and realistic planning.
- Master insurance certificate and summary. Verify coverage, limits, deductibles, and renewal status.
- HOA meeting minutes for 12–24 months. Look for references to deferred repairs, assessments, or insurance issues.
- Delinquency and ownership report. Shows past‑due accounts and investor concentration.
- Litigation summary. Details on any claims that could affect finances.
- Project approval status. Ask whether the building meets Fannie/Freddie or FHA criteria.
If any document is missing or flags a major issue, talk to your lender right away about alternatives and timing.
Financing paths that work
Conforming conventional
Best pricing typically comes when a project meets Fannie/Freddie rules on reserves, insurance, occupancy, and the absence of disqualifying issues. Lenders confirm project eligibility using published criteria and internal reviews. Learn more about what lenders check here: Fannie Mae project eligibility.
FHA and VA
If the association is FHA‑approved or can qualify a single unit, FHA can be a strong option with flexible credit standards. This process takes extra time, so verify early: FHA condominium approval basics. VA loans also require project approval under VA rules; ask your lender to confirm.
Portfolio and non‑QM
If a building is “non‑warrantable,” portfolio or non‑QM programs can bridge the gap. Expect larger down payments, tighter reserves, and higher rates. For a plain‑English overview of these options, review this guide to buying in a non‑warrantable project: Ways to finance a non‑warrantable condo.
Association‑level solutions
Some associations use loans or lines of credit to fund repairs and reserves, spreading costs over time. Florida’s 2025 updates allow added flexibility in certain cases, which can improve project eligibility once plans are documented and underway. Check the state’s overview for timing and compliance details: DBPR condo law timeline.
Smart contract strategies
- Buyers: Get a lender pre‑check that includes an HOA review. Use a financing contingency that allows time for project review. Ask for key documents before you go firm.
- Sellers: Gather and share association documents early. If an inspection or SIRS shows near‑term work, discuss mitigation with the board, like assessment credits or an association loan plan. Documented plans reassure lenders. For practical risk and disclosure pointers, see this legal professional overview: Condo regulations and financing impacts.
Verify status quickly
- Check the state’s milestone and SIRS timeline to confirm what applies to your building.
- Ask the association for budgets, reserves, insurance, minutes, and any engineer reports.
- Have your lender check Fannie/Freddie eligibility and whether FHA or VA is viable.
- If conventional and FHA will not work, price in non‑QM or portfolio terms early.
Next steps in Lighthouse Point
You can still win in this market with the right plan and the right team. If you want a clear read on a specific Lighthouse Point condo, I will help you gather the right documents, coordinate with your lender, and map out the best financing path for your goals. For personal guidance that puts your interests first, connect with Damiana Mendes Ponce.
FAQs
What is a non‑warrantable condo in Lighthouse Point?
- It is a building that does not meet Fannie/Freddie rules on reserves, insurance, occupancy, litigation, or structural items, which limits access to standard conventional loans.
How do Florida’s 2025 updates affect financing?
- The 2025 changes extended some inspection and SIRS deadlines and allowed added funding tools for associations, which can help projects regain or keep loan eligibility when documented properly.
Which documents do lenders check first for condo loans?
- Lenders usually review milestone and SIRS reports, HOA budgets and reserve studies, master insurance, recent meeting minutes, delinquency and ownership data, and any litigation summaries.
Can I use FHA for a Lighthouse Point condo purchase?
- Yes, if the project is FHA‑approved or the unit qualifies for single‑unit approval under FHA criteria, though the review can add time and has strict rules.
What if a building has a large special assessment?
- Lenders may require that safety repairs are complete or funded and that the association shows a viable plan; until then, conventional or FHA financing may be limited, so portfolio or non‑QM options might be needed.
How should sellers prepare to avoid failed condo deals?
- Share full association documents upfront, be transparent about inspections and assessments, and consider credits or timing solutions so buyers and lenders can underwrite with confidence.
