Condo Blacklists Eliminate Financing Options For South Florida Buyers In Post-Surfside Era

In this episode of Miami Condo Mondays™, special guest Sergio Aleaga of Union Mortgage Investment Group discusses the complexities of obtaining condo financing in the post-Surfside era.In this episode of Miami Condo Mondays™ podcast on Jan. 19, 2026, co-hosts Jenny Huertas‚ the broker-owner of CVR Realty, and Peter Zalewski of the Miami Condo Investing Club™ are joined by special guest Sergio Aleaga of Union Mortgage Investment Group in Coral Gables to discuss condo financing in the post-Surfside era.The conversation explores how condo blacklists eliminate financing options for South Florida buyers, leaving many owners in a difficult position as traditional liquidity vanishes.Aleaga—who was a commercial pilot before becoming a banker—uses aviation analogies to break down the turbulence currently facing the mortgage market, explaining why some condo units are now considered un-flyable by Fannie Mae and Freddie Mac.He details the specific credit score ranges that lenders view as either reliable private jets or risky puddle jumpers, providing a rare look into the internal psyche of a mortgage underwriter.During this 70-minute podcast, Aleaga explains the critical difference between warrantable and non-warrantable condos, and why a building's paperwork, financial standing, annual budget and capital reserves can make or break a real estate deal.Zalewski observes that these forms are the primary tool used to evaluate a condo association’s financial health.Zalewski—who served on a condo association for two years—raised the concern that buyers are making purchasing decisions and lenders are providing financing based on condo questionnaires typically completed by administrative employees whose focus and accuracy may vary.He noted that the potential for human error in these forms creates a significant reliability risk, as critical underwriting decisions are being made based on paperwork that may or may not be accurate.The analysis focuses on the practical implications of newly mandated Structural Integrity Reserve Studies (SIRS) every 10 years and Milestone Inspections at a building’s 30 year anniversary.These regulations have resulted in rising maintenance fees, hefty special assessments and pricey insurance. The combination of these rising expenses is making condo living much more expensive in the post-Surfside era.In June 2021, the Champlain Towers South on the barrier island of Miami-Dade County collapsed, killing nearly 100 people and resulting in a $1 billion settlement.As a result, Florida has implemented a number of measures in hopes of preventing another Surfside tragedy. The repercussions of these changes have meant cash-strapped unit owners are attempting to head for the exits but are struggling to find buyers who will pay retail prices for the condos.South Florida condo supply is rising, sales transactions are falling and buyers are sitting on the sidelines waiting for deep discounts.Despite the current market challenges, Aleaga said lenders are still willing to finance many South Florida condos but now require added scrutiny.