Why Florida condo buyers may need non-QM without realizing it
The out-of-state bank didn’t, she said. In this case, the trouble was in the HOA’s finances.
“There was no reason why they couldn’t have just called the HOA, gotten a copy of the budget, because that was what the problem was, saw that the budget wasn’t in line, and then put them in a non-warrantable,” Bloom said. “But, you know, the person he was working with wasn’t educated enough, and it’s ridiculous that it took them a month to figure this out. That’s not fair to the client.”
What buyers should know
Fannie Mae and Freddie Mac are raising the reserve requirement for condo associations from 10% to 15% starting Jan. 4, 2027. Bloom said more condos will land in the non-warrantable category as a result.
The shift isn’t all bad news for buyers, she said. Some may come out ahead, though the process looks different.
“I don’t say jump through more hoops because in some cases maybe the non-QM financing is better anyway,” Bloom said.
