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Relocation Strategy

Financing Your South Florida Home

Florida has unique mortgage considerations — from condo warrantability requirements to foreign national loans. Here's what out-of-state and international buyers need to know.

Disclaimer. This guide provides general mortgage education. All loans are subject to credit approval. Consult a licensed Florida mortgage professional for rates and program availability specific to your situation. Rates change daily.

Mortgage Options for Florida Buyers

Conventional (Fannie Mae / Freddie Mac)

Most common loan type. Requires 3–20%+ down. Best rates for buyers with 740+ credit and 20%+ down. Florida-specific: conventional loans on condos require the building to be 'warrantable' — meeting strict Fannie/Freddie guidelines.

FHA Loan

3.5% down with 580+ credit score. Popular for first-time buyers and those with less-than-perfect credit. FHA has strict condo approval requirements — only FHA-approved condo projects qualify. Check HUD's approved condo list before targeting a specific building.

VA Loan (Eligible Veterans)

Zero down payment for eligible veterans and active military. No PMI. VA also has condo project approval requirements. Check VA's approved condo list.

Jumbo Loan

Required for loan amounts above the conforming loan limit ($766,550 in 2024 for single-unit properties in most Florida counties). Common in South Florida's higher-priced markets. Typically requires 10–20% down and excellent credit.

Foreign National Loan

For non-US citizens without US credit history. Typically requires 30–40% down, higher rates, and proof of income/assets. Several Florida lenders specialize in these programs for international buyers.

Condo Financing: The Warrantability Problem

Financing a South Florida condo is significantly more complicated than financing a single-family home. Post-SB 4D, many condo buildings that were previously financeable are now classified as "non-warrantable" by Fannie Mae/Freddie Mac, meaning conventional financing is unavailable.

A condo building may be non-warrantable if:

  • More than 35% of units are investor-owned (not owner-occupied)
  • More than 15% of units are delinquent on HOA dues
  • The HOA is in active litigation involving the structure or safety
  • The building has received a failed structural inspection or has deferred critical maintenance
  • Reserves are less than 10% funded for Fannie Mae; standards vary by lender
  • More than 35% of the building's square footage is commercial use

Non-warrantable condos require portfolio loans (held by the lender, not sold to Fannie/Freddie) — which typically have higher rates and stricter terms. Always get condo financing approval before going under contract, not after.

Estimated Closing Costs in Florida

Florida closing costs are generally lower than many northern states. Key buyer closing costs include:

Title insurance (buyer's policy)$1,500–$5,000+ (based on purchase price)
Title search and closing/settlement fees$500–$1,200
Lender origination fees0–1% of loan amount
Appraisal$500–$1,000
Home inspection$300–$600 (more for larger homes)
Documentary stamp tax on note (mortgage)0.35% of mortgage amount
Pre-paid insurance (first year)Varies — based on your actual insurance quote
Pre-paid property taxes (escrow)2–6 months depending on closing month

Note: In Florida, the seller typically pays documentary stamp tax on the deed. Buyer pays doc stamps on the note (mortgage). Your lender will provide a Loan Estimate within 3 days of application with exact figures.

Get Connected to a Florida Mortgage Specialist

Jacob Edri refers buyers to experienced Florida-licensed lenders who understand condo warrantability, jumbo loans, and out-of-state buyer needs.