Frequently Asked Questions

What is a condo questionnaire and why does my lender need it?

A condo questionnaire is a form completed by the HOA or property management company that tells your lender about the financial health of the association, the percentage of owner-occupied vs. rented units, any pending litigation, and whether the building meets lender guidelines. Lenders use it to determine whether the condo project is "warrantable" — meaning eligible for conventional financing. Non-warrantable condos require portfolio loans, which typically carry higher rates and larger down payments.

What is a special assessment and how do I find out if one is coming?

A special assessment is a one-time charge levied by the HOA to cover a major expense not covered by reserves — a roof replacement, elevator overhaul, seawall repair, or similar capital project. To find pending or recently approved assessments, review the HOA meeting minutes from the past two to three years, ask the seller directly, and request a current estoppel letter from the association. Your agent can help you request these documents during the inspection period.

Can I rent out a Gulf Coast condo on Airbnb or VRBO?

It depends on the specific condo association's rules. Some Gulf Coast condos are purpose-built for nightly rentals and have on-site management programs. Others restrict rentals to 30-day minimums or prohibit short-term rentals entirely. The rental rules are in the condo declaration and rules and regulations — not just the listing description. Always verify rental allowances in the actual documents before assuming a condo can be rented short-term.

What does "gulf front," "gulf view," and "gulf access" mean?

"Gulf front" means the building sits directly on the Gulf of Mexico with no road or property between it and the water. "Gulf view" means you can see the Gulf from the unit — but the view may be partial, obstructed, or only visible from one angle. "Gulf access" means the property has a path or deeded access to the Gulf but is not directly on the water. These distinctions affect price, rental demand, and insurance costs significantly.

How is condo financing different from financing a single-family home?

Condo financing adds a layer of review that single-family financing does not have. In addition to qualifying you as a borrower, the lender must also approve the condo project itself. Projects with high investor concentration (too many non-owner-occupied units), pending litigation, underfunded reserves, or certain structural issues may not qualify for conventional Fannie Mae or Freddie Mac financing. In those cases, buyers need a portfolio or non-QM loan, which typically means a higher rate and a larger down payment.

What should I check in HOA financials before buying a condo?

Review the current operating budget, the reserve fund balance, and the most recent reserve study. A healthy association typically has reserves funded at 70% or more of the recommended level. Look for deferred maintenance items, any history of special assessments in the past five years, and whether the association has active or pending litigation. Underfunded reserves are one of the most common sources of surprise costs for condo buyers.