Buying or selling a condo in Coral Gables and wondering how the new SIRS rules affect your loan approval? You are not alone. Lenders now look much deeper at a building’s structure, reserves, and insurance before they sign off on financing. In this guide, you will learn exactly what lenders check, why it matters in Miami‑Dade, and how to prepare so your deal stays on track. Let’s dive in.
SIRS basics in Florida
Florida now requires a Structural Integrity Reserve Study (SIRS) for condo and co‑op buildings with three or more habitable stories. A licensed engineer or architect visually evaluates key structural components, estimates remaining useful life, and recommends reserve funding for major repairs. Results become association records and must be shared with owners and filed with the state. You can review a clear overview of what a SIRS includes and its filing requirements on Florida‑focused reserve study resources. Learn what a SIRS covers and how it is filed.
These rules were created after the Surfside tragedy to identify deterioration sooner and shore up funding for critical repairs. Reporting on Surfside’s aftermath explains the safety focus behind the law. Recent updates, often referred to as HB 913, clarified which buildings are covered, raised the threshold for reserve‑eligible items to 25,000 dollars, and gave associations more tools to fund repairs. See a summary of HB 913 changes.
Why Coral Gables buyers care
Coral Gables sits in a county with many mid‑ and high‑rise condos, including older buildings exposed to coastal conditions and hurricanes. That makes SIRS findings, reserve health, and insurance a big deal for lenders here. Local reserve experts note that Miami‑Dade buildings are seeing sizable projected repair costs and higher reserves or special assessments to match. Get Miami‑Dade context on SIRS and reserves.
At the same time, higher insurance costs and stricter investor rules have pushed some projects off the conventional financing path. National coverage of Florida’s insurance squeeze highlights how this can limit lender options. If a Coral Gables building has adverse SIRS findings, thin reserves, or master policy issues, lenders may label it non‑warrantable and require different financing.
What lenders check now
SIRS status and milestones
- Has the required SIRS been completed and shared? Lenders often ask for the SIRS and any milestone inspection report. Missing or adverse findings increase underwriting scrutiny.
Reserves and budgets
- Lenders look for an adequate reserve balance and a credible funding plan that lines up with SIRS recommendations. The updated law means more components must be funded in reserves, which lenders review against the association’s budget. See highlights of the law’s reserve changes.
Master insurance details
- Investors expect replacement‑cost coverage for common elements and reasonable deductibles. Agency guidance commonly flags wind and other deductibles above 5 percent as problematic for conforming loans. Review the insurance and deductible rules in agency guidance.
Assessments and repair plans
- Approved or proposed special assessments tied to structural work matter. Lenders want to see how repairs will be funded and whether owners face large near‑term costs.
Litigation and critical repairs
- Litigation that affects safety, structural soundness, or solvency is a major red flag. Many such projects are ineligible for sale to conventional investors. See examples of ineligible projects.
Delinquencies and ratios
- Underwriters review HOA delinquency rates, owner‑occupancy, investor concentration, and commercial space share. Fannie Mae’s full review process highlights a 15 percent delinquency threshold for units 60 or more days late as a common limit. Read the full review factors.
Project status lists
- Lenders check investor systems like Fannie Mae’s Condo Project Manager to see if a building is approved or unavailable. Learn how CPM works.
Appraisal and insurability
- If the SIRS or milestone report notes unresolved structural items, appraisers may adjust value or lenders may ask for more documentation or reserves.
Documents lenders request
Gather these early to avoid delays:
- Current SIRS and any milestone inspection report, plus proof of filing when required.
- Association budget, most recent reserve study, and current reserve balances.
- Master insurance declarations and pages showing replacement‑cost wording, policy limits, named insured, mortgagee clause, and all deductibles.
- HOA meeting minutes and disclosures for any special assessments or association loans.
- Litigation summary from association counsel, if applicable.
- A completed condo questionnaire or HUD‑9991 when needed for FHA.
Options if a project is flagged
- Fix documentation gaps. Many project denials stem from missing or outdated insurance docs. Once accurate replacement‑cost wording or deductible details are provided, a lender can often re‑submit the project for review. Overview of CPM use by lenders.
- Adjust coverage. Some lenders may accept an HO‑6 with loss assessment coverage to help address large master deductibles. Always confirm with the specific lender’s guidelines.
- Consider program alternatives. If a conforming loan is not possible, FHA’s Single‑Unit Approval can be an option for eligible buyers, and VA has its own pathways. See how FHA Single‑Unit Approval works.
- Let the association act. Updated Florida law permits associations to fund repairs through reserves, special assessments, or credit lines in certain cases. A documented plan improves loanability for units.
Seller checklist for Coral Gables
Use this when you prepare to list your condo:
- SIRS and milestone reports, plus proof of filing or any permitted extension.
- Association budget, audited financials, reserve study, and reserve statements.
- Master policy declarations and endorsements showing replacement cost and all deductibles.
- Minutes or notices about special assessments, repair votes, or association loans.
- Litigation status and unit delinquency report, plus owner‑occupancy ratio.
Having this ready helps lenders complete their project review faster and gives buyers confidence that conventional financing is realistic. A proactive package can prevent last‑minute surprises.
Next steps
If you are eyeing a Coral Gables condo, start with the building’s SIRS, reserves, and master insurance. Ask the HOA for documents early, then match your loan strategy to the project’s status. For sellers, pre‑assemble the lender packet and decide whether conventional, FHA, VA, non‑warrantable, or cash buyers fit your timeline and price.
Need a game plan tailored to your building and budget? Let’s talk. Reach out to Adrian Gonzalez for a quick strategy call and a streamlined path to closing.
FAQs
What is a SIRS and why do lenders care?
- A SIRS is a structural reserve study by a licensed engineer or architect that identifies key components, remaining life, and funding needs; lenders use it to gauge project health and the risk of major repairs. See a SIRS overview.
How did Florida’s new laws change condo reserves?
- Updates commonly known as HB 913 raised the reserve threshold to 25,000 dollars for many items and clarified scope, which pushes associations to fund more structural components that lenders review. Read the HB 913 summary.
Why are some Coral Gables condos labeled non‑warrantable?
- Common reasons include adverse SIRS findings, large special assessments, inadequate reserves, high delinquencies, master policy deductibles that exceed investor limits, or litigation tied to structural issues. See ineligible project examples.
What insurance details can derail a condo loan?
- Missing replacement‑cost language or wind and hazard deductibles above investor guidelines often trigger denials or extra conditions for conforming financing. Review typical agency insurance rules.
Are there alternatives if a building fails conventional review?
- Yes. Options include FHA Single‑Unit Approval, VA pathways for eligible borrowers, or non‑warrantable portfolio loans with different rates and down payments. Learn about FHA SUA basics.
