How Florida’s New Condo Laws Impact Non-Warrantable Condos in 2025
Florida has just enacted two significant pieces of legislation — HB 393 and HB 913 — that will reshape the landscape for condominium ownership, financing, and compliance. For buyers and investors considering non-warrantable condos, understanding how these laws affect the market is more critical than ever.
Background: What Is a Non-Warrantable Condo?
In short, a non-warrantable condo is one that doesn’t meet the lending guidelines of Fannie Mae, Freddie Mac, or traditional government-backed loan programs. Reasons for non-warrantability can include things like too many rentals in a building, ongoing litigation, insufficient reserves, or structural concerns.
These properties often require alternative financing — and are now further influenced by new legal obligations introduced in 2025.
HB 393: Increasing Transparency & Risk Awareness
House Bill 393 mandates stricter financial and reserve disclosures from condo associations. It reinforces the requirement for reserve studies every 10 years and strengthens owners’ rights to access maintenance and financial records.
For non-warrantable condos, this matters because many such properties already struggle with transparency and budgeting. HB 393 makes it harder for associations to avoid reserve funding — potentially improving long-term financial health, but also increasing monthly assessments for owners in the short term.
HB 913: Strengthening Structural Integrity and Buyer Notification
HB 913 focuses on life safety, inspection, and repair timelines for condos 3 stories or higher, particularly those within 3 miles of the coast or over 30 years old. This law shortens compliance windows for milestone inspections and adds accountability for boards that delay safety repairs.
For buyers, this means stricter due diligence is required. For lenders, non-compliance can render buildings ineligible — instantly classifying them as non-warrantable.
Impact on Non-Warrantable Condo Financing
These laws increase both the likelihood of buildings becoming non-warrantable due to deferred maintenance, and the pressure on condo associations to raise fees or implement special assessments.
- Buildings failing new inspection rules may lose access to traditional financing.
- Associations that fail to budget properly may push buyers into cash or alternative loan programs.
- Lenders may start requiring third-party engineering reports before issuing approvals.
At the same time, responsible associations that comply with the new laws could eventually regain warrantable status — but not without cost and time.
What Buyers and Investors Should Do Now
If you're considering a non-warrantable condo in Florida, especially in coastal cities like Miami, Tampa, Sarasota, or Jacksonville, now is the time to work with lenders who understand these legal shifts and offer financing solutions outside of traditional guidelines.
Expect stricter underwriting, more documentation, and higher down payment requirements — but also opportunities, especially as other buyers retreat from the uncertainty.
Final Thoughts
Florida’s 2025 condo reforms are a wake-up call. While they aim to protect owners and preserve building safety, they also complicate the financing landscape — particularly for non-warrantable condos. Whether you’re a first-time buyer, an investor, or a real estate agent, it pays to stay informed and prepared.
Need help financing a non-warrantable condo? We specialize in creative loan solutions for Florida’s evolving market.