Falling in love with a downtown condo is easy. Getting your mortgage across the finish line can be the hard part. The most common surprise is a condo questionnaire or project approval that slows everything down. If you plan ahead, you can avoid delays and keep your closing on track.
In this guide, you will learn what condo questionnaires are, how project approvals work, the local issues that affect Downtown West Palm Beach buildings, and a step-by-step plan to prepare your file. You will also get a practical document checklist and a realistic timeline so you can move with confidence. Let’s dive in.
Condo questionnaire basics
A condo questionnaire is a standardized form your lender asks the condominium association or property manager to complete. It confirms facts about the building’s finances, insurance, maintenance, reserves, litigation, rental policies, and occupancy. Lenders use it to measure the overall risk of the condominium project.
You may hear it called a project questionnaire or lender questionnaire. No matter the label, it serves the same purpose. Without a completed questionnaire, many lenders will not approve or fund a loan on a condominium unit.
Project approval explained
Project approval, sometimes called project eligibility, is the lender’s review of the building itself. Rather than looking only at your income and credit, the lender evaluates whether the condo project meets program rules for Fannie Mae, Freddie Mac, FHA, VA, or a portfolio loan.
If the project clears the review, financing options tend to be broader and more competitive. If it does not, your choices may narrow to alternative loan types or cash. That is why you want to know the project’s status as early as possible.
Why it matters to you
A missing or failing questionnaire can delay a closing or block a loan. Project-level issues can also change your terms. You might see higher rates or larger down payments, or you may need to pivot to a different loan program.
Sellers and listing teams should plan for the time and cost of requests. Associations often charge administrative fees and need several days to gather records. Building these steps into your timeline keeps surprises to a minimum.
What lenders look for
Lenders focus on a few core areas. Understanding these will help you read the questionnaire and ask the right questions.
Ownership and occupancy
Questionnaires ask about the percentage of owner-occupied units and the number of investor-owned units. They also check if any single owner holds multiple units. Higher investor concentration can raise risk and affect eligibility.
Financial health and reserves
Expect requests for the current budget, recent financial statements, reserve studies, and the amount of reserve funds on hand. Lenders want to see stable finances and adequate reserves to handle repairs without constant special assessments.
Insurance and flood coverage
Master insurance details matter. Questionnaires list carrier names, coverage limits, deductibles, and any open claims. If the property is in a flood zone, lenders will require evidence of flood insurance. In coastal Florida, premiums and deductibles can be significant, and gaps in coverage are a red flag.
Maintenance, inspections, and repairs
Lenders look for recent capital improvements, deferred maintenance, and structural or engineering reports. In Florida, post-Surfside inspection and recertification requirements have made engineering documentation more prominent, especially for older buildings. Unresolved deficiencies can slow or stop approvals.
Litigation and disputes
Active lawsuits, including construction defects or large insurance disputes, can threaten budgets and insurability. Lenders evaluate the scope of any case and potential exposure for owners.
Commercial space and governance
Questionnaires report the percentage of commercial space and any non-residential use. High commercial ratios can affect loan marketability. Lenders also review recorded governing documents, management agreements, and lease or short-term rental policies to understand operational risk.
How loan programs differ
Each mortgage program has its own approach to project approval. Knowing the general landscape helps you set expectations.
Conventional loans
Lenders selling loans to Fannie Mae or Freddie Mac must confirm project eligibility. Agency guidelines focus on occupancy, reserve health, insurance, litigation, and commercial use. Simple projects can move quickly. Complex issues, like litigation or insurance challenges, can add weeks.
FHA loans
FHA has a separate approval process and also allows single-unit approvals in some cases. The review emphasizes budget sufficiency, insurance, any master association membership, and signs of deferred maintenance. FHA maintains an approved condo list that changes over time.
VA loans
VA requires project approval as well. Reviews consider insurance, finances, and occupancy. If a project appears on the VA approved list, VA buyers may have a smoother path.
Portfolio lenders
Local banks, credit unions, or private lenders can approve loans on projects that do not meet agency rules. These options can help when a building has unique issues. Rates or loan terms may be less favorable, and underwriting can be conservative.
Downtown West Palm Beach factors
The downtown and Intracoastal corridor has its own rhythm. A few local realities tend to show up on questionnaires and can shape approvals.
Recertification and older buildings
Downtown West Palm Beach mixes newer luxury buildings with mid-century towers. Older buildings may face engineering recertifications and maintenance programs. If inspections reveal structural work or deferred repairs, lenders will scrutinize the documentation until deficiencies are resolved.
Insurance costs and coverage
Florida’s insurance market has seen rising premiums and higher deductibles. Some associations have had to adjust coverages or carriers. Lenders look closely at master policy adequacy and flood coverage if the building is in a flood zone.
Short-term rentals and leasing
Cities and counties across South Florida continue to refine short-term rental rules. Questionnaires often ask about minimum lease terms and STR allowances. Buildings that permit frequent short stays can have higher investor occupancy, which may impact eligibility.
Investor concentration
Downtown settings attract second-home buyers and investors. Higher rental percentages or a single entity owning many units will get attention. Clarifying these statistics early helps you pick the right loan path.
Red flags to watch
Spotting issues early keeps your deal on track. Common red flags include:
- Significant pending litigation against the association.
- Inadequate reserves or recent large special assessments.
- High delinquencies in association dues.
- Large commercial components or a single owner holding many units.
- Unresolved insurance claims or unusually high deductibles.
- Required structural recertifications with open deficiencies.
- Extensive short-term rental activity under permissive policies.
- Missing or unclear governing documents.
Your action plan and timeline
Most delays are preventable with early coordination. Here is a practical plan.
Step 1: Ask your lender on day one
As soon as you go under contract, ask your lender if the project is already approved. If not, request the appropriate questionnaire form. Share association contact details so forms go out immediately.
Step 2: Notify the association early
Let the property manager or association know the request is coming. Ask about fees and expected turnaround time. Some associations respond within a few days. Complex packages can take longer.
Step 3: Gather supporting documents
In addition to the questionnaire, collect budgets, financials, insurance certificates, and any recent engineering reports. These items help the lender resolve questions without repeated back-and-forth.
Step 4: Set realistic expectations
Simple reviews may take 1 to 4 weeks. If there is litigation, insurance complexity, or structural work in progress, add several weeks or more. Build room into your closing timeline.
Step 5: Plan your fallback options
If the project does not meet agency rules, ask your lender about FHA, VA, or portfolio options. In some cases, cash or a larger down payment can be the simplest path.
Buyer checklist: what to request
Use this list at contract to avoid last-minute scrambles:
- Completed condo questionnaire on the lender’s preferred form.
- Recorded declaration, bylaws, and all amendments.
- Current year budget and most recent financial statements.
- Latest reserve study and a record of reserves on hand.
- Board meeting minutes for the last 12 to 24 months or a summary of material actions.
- List of pending litigation with counsel contact and a summary of exposure.
- Certificates of insurance for master and flood policies, with carriers, limits, and deductibles.
- Management agreement and manager contact information.
- Recent engineer inspection reports and any recertification documents.
- Owner-occupancy and investor counts, if available.
- Resolutions for any special assessments and current amounts.
- Estoppel letter for the specific unit to confirm dues status.
- Certificate of occupancy or documentation showing code compliance, if available.
Seller prep: how to set the pace
As a seller, you can speed the process by preparing your document package before or right when you go under contract. Coordinate with the manager, approve questionnaire fees, and share the lender’s contact information. Disclose known items like pending assessments or litigation so buyers can choose the right loan path early.
How Haven fits your goals
If you are buying or selling a waterfront loft or design-forward condo along Flagler Drive, you want a smooth, curated experience. You also want clear, early answers on project eligibility and timelines. Our hyper-local focus on Downtown West Palm Beach gives you context on which buildings tend to move quickly and which require extra lead time. We help you stage the process as thoughtfully as we stage a home, so the paperwork supports the story you are creating.
When you work with a boutique team that pairs design-led marketing with practical advisory, you can set expectations, handle association requests with hospitality, and keep your closing aligned with your calendar.
Ready to align your condo purchase or sale with a clear plan and a beautiful presentation? Connect with Haven Palm Beach to schedule a private viewing or explore our waterfront collection.
FAQs
How long does condo project approval take in West Palm Beach?
- Simple reviews often take 1 to 4 weeks, while projects with litigation, insurance challenges, or recertification issues can take several weeks to a few months, so start the process at contract.
What if the association will not complete the condo questionnaire?
- Associations can charge administrative fees and set timelines; if they refuse or delay, financing can be blocked and you may need alternative lenders or updated contract contingencies.
Can I get a mortgage if the condo is not Fannie or Freddie approved?
- You may still qualify through FHA, VA, or a portfolio lender, but terms can be more conservative and you should compare costs and timelines with your lender early.
What are the most common reasons a Downtown West Palm Beach condo fails approval?
- Insurance gaps or very high deductibles, pending litigation, weak reserves or large assessments, higher investor or short-term rental activity, and unresolved structural or recertification items.
How can a seller in Palm Beach County speed a condo buyer’s loan?
- Authorize the questionnaire immediately, prepare budgets, financials, insurance certificates, and inspection reports in advance, and share the manager’s contact and expected fees at contract.
