Buying a condo in Brickell is not like financing a suburban home. Lenders scrutinize the building as much as they assess you, and Brickell’s high‑rise, investor‑friendly profile adds extra layers to the process. If you understand what lenders look for, you can position your file to move fast and close with confidence. In this guide, you’ll learn down‑payment norms, how warrantable vs non‑warrantable buildings work, what HOA reserves mean, and how loans differ for primary residences and investments. Let’s dive in.
Why Brickell condos finance differently
Brickell is a dense high‑rise market with a mix of new towers, conversions, and investor‑owned units. That concentration changes how underwriters view risk because the stability of the condo association affects both your loan and a lender’s confidence in the collateral.
Since the Surfside tragedy, lenders and secondary market investors pay closer attention to structural reports, reserve studies, and inspection histories. In Miami‑Dade, building recertification and municipal inspection records matter, so it helps to confirm a building’s status with the county before you go under contract.
Insurance is another driver. Flood, windstorm, and hazard premiums in Miami‑Dade are often higher than in other markets. Lenders will review master policy limits, deductibles, and flood requirements for your specific unit.
Down payments in Brickell
Primary residence
For primary residences, some conventional programs allow low down payments in select cases. In Brickell high‑rises, lenders often prefer more conservative sizing due to project risk and HOA factors. You should expect 10 to 20 percent down in many buildings.
Second home
Second home loans usually require more money down than primaries. Many buyers see 10 to 20 percent or more depending on the building’s financials, insurance, and owner‑occupancy mix.
Investment properties
Investor loans are the most conservative. Many Brickell lenders look for 20 to 30 percent down, and some ask for 25 percent or more in buildings with low reserves, high investor concentration, short‑term rentals, or active litigation. Rates and fees are typically higher than for owner‑occupied loans.
FHA and VA options
FHA and VA programs can offer lower down payments, but the condo project must be approved. Some Brickell towers are not eligible. You can review FHA’s condominium approval framework on HUD’s site and VA’s condominium approval guidance to understand the process and limits.
- Learn more about FHA condominium approval on HUD’s resource page for condos.
- See how VA reviews condominium projects on the VA’s condo approval page.
Warrantable vs non‑warrantable buildings
What makes a building warrantable
A condo is warrantable when it meets the standards set by major investors such as Fannie Mae and Freddie Mac. These standards address owner‑occupancy, reserve funding, litigation, commercial space, and insurance on the master policy. Lenders reference these rules to decide if they can sell your loan into the secondary market.
- Review Fannie Mae condo project eligibility rules in the Selling Guide.
- See Freddie Mac guidance for Condominium Unit Mortgages in Section 5701.
Common Brickell blockers
Brickell’s profile means certain factors show up more often. High investor or short‑term rental use, pending or significant litigation, underfunded reserves, high HOA delinquencies, large commercial components, or incomplete phases can push a project to non‑warrantable status.
What non‑warrantable means for you
If a project is non‑warrantable, conventional conforming loans may not be available. You may need a portfolio or specialty lender, which usually means a larger down payment and higher pricing. Your options improve if you bring strong credit, solid reserves, and a bigger equity position.
Reserves and the HOA file
What lenders want to see
Lenders study the HOA’s budget, reserve study, and financials to gauge future repair needs. They often look for a current reserve study or recent statements, meaningful funded reserves relative to the budget, and a plan to address expected capital items like roof, mechanical, or concrete work.
If the reserve picture is weak or a special assessment is looming, the lender may ask for more borrower reserves, a larger down payment, or an escrow for the assessment. In some cases, the loan can be declined.
Red flags that slow loans
Common issues that trigger extra review include: active or undisclosed litigation, low or negative reserve funding, high HOA delinquencies, high short‑term rental usage, large commercial components, and municipal violations or recertification hurdles. These are not automatic denials, but they can extend timelines and limit loan programs.
Primary vs investment underwriting
How income and credit are weighed
Primary residence loans usually allow more favorable loan‑to‑value ratios and lower rates. Investment property loans require stronger credit, more borrower reserves, and conservative debt‑service sizing. If you plan to use rental income to qualify, expect a closer review of leases and rent assumptions.
Rental rules and documentation
Lenders will verify that the building allows rentals and that your plans comply with rules. You may be asked for lease agreements, rental history, and confirmation of any caps or minimum lease terms. If short‑term rentals are prevalent, some conventional programs may not allow the project.
Rates, LTV, and reserves
Investment loans usually carry higher rates and lower maximum loan‑to‑value than primary loans. Lenders may ask for several months of reserves after closing. In higher‑risk projects, reserve expectations can expand.
Insurance, floods, and wind
Flood risk and wind exposure are part of the Brickell underwriting picture. If your unit falls in a FEMA flood zone, flood insurance will be required. You can verify zone status through the Flood Map Service Center.
Lenders also review the HOA’s master policy for replacement cost coverage and deductible sizes. High deductibles or nonstandard carriers can trigger extra scrutiny. In Miami‑Dade, you can reference the county’s building recertification program to understand building safety and inspection timelines, which often intersect with insurance and lender review.
- Check FEMA’s Flood Map Service Center for flood zone information.
- See Miami‑Dade’s building recertification resources for inspection and compliance context.
Pre‑offer checklist for Brickell buyers
Use this quick list before you write an offer:
- Get pre‑approved with a lender experienced in Miami high‑rise condos. Ask for a preliminary project review when possible.
- Request the condo’s latest budget, reserve study, 12 months of HOA meeting minutes, insurance certificate, and details on any special assessments or litigation.
- Confirm the building’s recertification and inspection history with the City of Miami or Miami‑Dade.
- Verify the unit’s flood zone and likely insurance requirements.
- If you will rent the unit, confirm the building’s rental policies and prepare leases or market rent data.
Strengthen your borrower profile
Keep credit strong. Higher scores improve pricing and broaden your lender options.
Hold extra cash reserves. It is common for lenders to require several months of PITI and HOA dues, especially for investor loans or higher‑risk projects.
Document your down payment. Be ready with bank statements, gift letters, or asset sale documentation.
If the building is non‑warrantable
You still have paths to close. Consider portfolio lenders or local banks that specialize in condos, knowing pricing will be higher. Increase your down payment to reduce risk and expand lender appetite.
If a large assessment is expected, you can negotiate seller concessions to escrow part of the proceeds. Build financing contingencies into your contract in case the project fails a lender’s review.
Timeline and expectations
Condo underwriting takes longer than single‑family deals. Lenders must analyze the project file, and coordinating HOA questionnaires and estoppel letters can add weeks. FHA or VA approvals add time if the project is not already on the approved list.
To keep the process moving, respond quickly to document requests, and have your team line up building documents early. It helps to follow consumer mortgage best practices from trusted sources like the CFPB.
- Explore the CFPB’s homebuying tools and mortgage guidance for clarity on steps and documents.
How a local advisor helps
In Brickell, the difference between a smooth closing and a scramble often comes down to preparation. A local advisor can coordinate a lender familiar with Miami high‑rise condos, collect the HOA documents early, and help you compare buildings for warrantability, reserve strength, and insurance profile. If you are buying as an investor or from abroad, you also benefit from bilingual guidance and an international network.
If you are planning a Brickell purchase, you can reach out for tailored building intel, lender introductions, and a step‑by‑step plan from offer to close. Work with a concierge advisor who understands both luxury towers and the lending landscape.
Ready to move forward with confidence? Connect with Ruben Chamorro for discreet, data‑driven guidance on Brickell condos and access to select opportunities.
FAQs
Can I buy a Brickell condo with 3 percent down?
- Some programs allow low down payments for primary residences, but high‑rise Brickell condos often face stricter project reviews, so many lenders prefer 10 to 20 percent down.
What makes a condo non‑warrantable in Brickell?
- Factors like high short‑term rentals or investor concentration, underfunded reserves, active litigation, large commercial components, or incomplete construction can make a project non‑warrantable.
Do investors have financing options in Brickell?
- Yes, but underwriting is tighter. Expect higher rates, larger down payments, and more documentation, or use portfolio lenders that specialize in condos.
Why do HOA reserves matter to my loan?
- Strong reserves reduce the risk of large assessments and deferred maintenance, which protects building stability and lender collateral, making your loan more financeable.
