Florida Condo Financing After Surfside: What Changed and How to Finance a Condo in 2026

The 2021 collapse of the Champlain Towers South in Surfside, Florida prompted sweeping changes to condo financing guidelines from Fannie Mae, Freddie Mac, FHA, and the VA. If you are buying or refinancing a condo in Florida in 2026, these changes have almost certainly affected the building you are considering.

What Changed After Surfside

Both agencies now require condo projects to certify that they have no deferred maintenance on critical building systems and that HOA reserve funds are adequate — typically at least 10% of the annual budget as a minimum. Buildings that cannot certify clean structural and financial health face ineligibility for conventional and FHA financing.

Which Buildings Are Most Affected

Older concrete buildings in South Florida, particularly those built in the 1960s through 1980s. Buildings with documented structural concerns or ongoing special assessment disputes. Buildings with reserve funds significantly below recommended levels. Oceanfront and waterfront properties that have experienced higher exposure to salt air corrosion.

How to Determine a Building's Status

Ask the seller or HOA for a copy of their most recent structural inspection report, their reserve study, and current reserve fund balance. Your lender will also order a condo project questionnaire directly from the HOA. If the building cannot answer the structural certification questions satisfactorily, conventional and FHA approval is likely unavailable.

Portfolio and Non-QM Solutions for Ineligible Buildings

Many Florida condos that lost agency eligibility after Surfside are still viable — the physical properties are livable and rentable. Portfolio lenders and non-QM programs can finance non-warrantable condos including those affected by Surfside guidelines, with higher down payment requirements and less favorable rates than agency products.

At East Coast Mortgage, we navigate Florida condo financing with access to portfolio and non-QM lenders who regularly handle post-Surfside non-warrantable buildings. Submit your scenario and we will identify the right program for your condo.