If you're buying, selling, or listing a condo in Southwest Florida, the rules changed under your feet. Fannie Mae and Freddie Mac rewrote how condo loans get approved.
Here's the deal. Some of this makes condos easier to finance. Some of it makes certain buildings a lot harder. And in Florida, where condos are already under a microscope after Surfside, this hits harder than almost anywhere in the country.
Why this happened
Short version: the 2021 Surfside collapse changed everything. After that building came down, lenders started digging much deeper into condo finances and structural health before approving loans. These updates are the next step. Fannie and Freddie want to make sure the building behind your loan is financially and structurally sound.
What lenders now look at
- Reserves: The association needs adequate funded reserves for major repairs. Underfunded buildings can be hard or impossible to finance.
- Structural studies: Florida's structural integrity reserve study requirements mean buildings have to assess and plan for major components. Results matter to lenders.
- Special assessments and litigation: Pending assessments or lawsuits against the association can stop a loan cold.
- Deferred maintenance: A building with obvious unaddressed repairs raises red flags.
How to protect your deal
Check the building before you fall in love with the unit. As your broker, I can help you and your agent get the association's key documents reviewed early: reserves, the reserve study, any assessments, and the questionnaire lenders require. We find out if it's financeable before you write the offer, not three weeks before closing.
SWFL has a lot of older coastal condo buildings, and those are exactly the ones getting the most scrutiny. If you're eyeing a condo in Fort Myers Beach, Cape Coral, or Naples, don't guess. Let me help you confirm the building is approvable up front. It'll save you a heartbreak and a lost deposit.