We Closed a Condo With 5% Down — Even Though It Failed the Reserve Test

We just closed a 5% down Fannie Mae conventional loan on a condo where the building's reserve budget was under 10% — the number every lender in the country uses as the cutoff. Most lenders said no. Here's how we got it done.In this episode, Craig Garcia and Billy Mei do a deep dive on condo reserves: what they actually are, why they matter, how the rules have changed since the Surfside collapse, and where the real opportunities are hiding in South Florida's condo market right now.**What we cover:**- What condo reserves actually are — and the single-family home analogy that makes it click- How Fannie Mae and Freddie Mac set the 10% rule — and what happens when a building doesn't hit it- How the Champlain Towers collapse changed condo lending forever- Florida's SB4D and SB154 — milestone inspections, SERS reports, and no more reserve waivers- The case study: how a reserve study (SERS report) proved a condo was fully funded — even though the budget percentage said otherwise- **The August 3 deadline** — why applications need to be in NOW if your condo has under 10% reserves- What changes in January: the threshold goes from 10% to 15%- Why there are 13 months of condo inventory in Miami-Dade — and where the opportunity isIf you're a buyer, seller, listing agent, or buyer's agent dealing with condos in South Florida, this one is required listening.**Have a condo deal that's been turned down? Contact us:**👉 https://www.cp-mtg.com/condo-loans/*This episode also marks one year and 53 episodes of the South Florida Mortgage Report. Thanks for listening.***Subscribe for weekly market updates** on rates, inflation, jobs reports, and what actually moves mortgage pricing. 📍South Florida focus — national relevance. #MortgageRates #HousingMarket #RealEstate #Fed #FannieMae #FreddieMac #MBS #Refinance #HomeBuying #SouthFloridaRealEstate 🎧 LISTEN & SUBSCRIBE TO THE SOUTH FLORIDA MORTGAGE REPORT 🔁 YouTube playlist (all episodes): https://www.youtube.com/playlist?list=PLCOa_zSrotiecbiomGKhTzASCBToYQUea 📱 Subscribe & follow on your favorite platform: • Apple Podcasts: https://podcasts.apple.com/us/podcast/south-florida-mortgage-report/id1834181574 • Spotify: https://open.spotify.com/show/5QxG2PzPd3W9pJFqQnLAPS?si=5a667fbd60a44ce9 📌 HELPFUL LINKS 📩 Housing Newsletter: Stay informed with curated mortgage and housing insights delivered straight to your inbox: https://housingnewsletters.com/craiggarcia ✅ Pre-Approvals 24/7: Get started anytime: ⁠ Option 1⁠ https://loancenter.cp-mtg.com/dr/c/rhx8h ⁠Option 2⁠ https://loancenter.cp-mtg.com/dr/c/w2o7v