Don't say Blacklist...Condos in 32034
- amelialending
- May 22
- 4 min read
Updated: May 23
Selling, purchasing and owning a Florida condominium is difficult enough; now there is a "blacklist"? Some recent news articles used this term in reference to Fannie Mae’s “unavailable” condominium associations. Here is an excerpt from an article from Realtor.com originally published in The Wall Street Journal dated March 17, 2025.
“Condominium owners across the country are facing a paralyzing problem: They can’t sell their properties because of a fast-growing and mostly secret mortgage blacklist.”
Knowledge is the key to successfully navigating the Florida condo market. As a start, I encourage you, as a vested party in a condominium real estate transaction, to use "unavailable" which is the term Fannie Mae uses to describe associations that are ineligible for their financing.
Amelia Island Area Condos
There are approximately 80 residential condominium complexes in the 32034 zip code. Fannie Mae lists eleven as “Approved” and four as “Unavailable”, see Appendix A. And now you have the list, so it is not a secret. This leaves 65 associations as undetermined or undesignated. These associations must be analyzed by the lender when financing is involved in the purchase.
When an association is listed as Approved, this relieves the lender of having to analyze for warrantability. A lender simply collects the most recent evidence of insurance to ensure that coverage is active and sufficient. The association is then deemed acceptable by all parties with interest in the mortgage being created. It is important to note that the status of the association can change. Underwriters typically reference Fannie Mae’s web site in their final review to ensure that the status has not changed prior to closing. If an “Approval” status is lost prior to closing, then the association must be reviewed for warrantability. It is also important to understand that some lenders have "guideline overlays" that may require documentation in additional that listed by agency guidelines.
Not long-ago Amelia South was classified as Unavailable due to structural repairs in process. This has now been updated. Currently, Ocean Dunes is considered unavailable, but only due to insufficient insurance coverage. It would be unfair for Ocean Dunes and Amelia South to have the reputation of being “on the list”. Ocean Dunes association may have already renewed their insurance policies and would therefore be eligible for Fannie Mae review. Ketch Courtyard, Captains Court and Amelia Landings will have difficulty being removed from the unavailable category due to the reasons for being on the list but it is certainly possible. Ketch Courtyard has a “green” status with Freddie. Green indicates it is eligible for financing with Freddie Mac pending a successful review of limited data referenced in Freddie’s automated underwriting system. We successfully closed a Ketch Courtyard loan recently.
Fannie Mae Alternatives
Remember, Fannie Mae is not the only option. Freddie Mac’s guidelines, although similar, have a few important differences. We have been successful in financing condominium loans through Freddie that were considered unavailable or non-warrantable by Fannie. Freddie manages condos differently and does not provide a list. The specific association must be entered into Freddie’s system which reveals the association’s status. Additionally, some lenders, including Capital City Home Loans, have portfolio loan programs that may allow financing for properties that Fannie and Freddie would not. Being categorized as unavailable does not mean the property cannot be financed but it does remove Fannie Mae as a financing option.
Reviewing for Warrantability
When an associations is neither approved nor unavailable, like 65 of the associations in 32034, the lender must request a condo questionnaire, most recent approved budget, approved board minutes for the past six months and evidence of insurance. When the condo questionnaire indicates that an inspection or reserve study has been performed within the last five years, the lender will require copies for these inspections for review. When the inspections indicate defects related to structural integrity, further information and analysis is required. This review is used to determine the association is "warrantability", an industry term that means the reviewing lender can "warrant" that this association meets the respective agency (Fannie or Freddie) guidelines. Meredith often says, “What must be done eventually, should be done immediately”. In this spirit we encourage sellers and listing agents to gather the above referenced documents when the property is listed for sale. Educated cash buyers are likely to request this information also, so collect it early.
Remember...when you have questions about condos in Florida, Amelia Lending is always happy to help. Please call Ben or Meredith for the most current information about the association(s) in question.
Appendix A – Condominiums - Fannie Mae Status
May 21, 2025
Approved Expiration Date
Amelia Surf & Racquet Club Condo Assn. | 03-31-2025 |
Beach Walker Villas Assn. | 03-28-2026 |
Cape Sound on Amelia Island | 07-29-2026 |
Cottages at Stoney Creek | 12-08-2025 |
Fairway Oaks Villas Assn. | 06-16-2026 |
Forest Ridge Village COA | 03-04-2026 |
Mariner's Walk | 07-27-2026 |
Ocean Park Condo | 06-20-2026 |
Piper Dunes Condo Assn. | 11-23-2025 |
Sandcastles at Amelia Island Condo Assn. | 09-09-2026 |
Turtle Dunes Condo | 09-08-2026 |
Unavailable Reason
Amelia Landing | Condotel or Resort Type Project |
Captains Court Villas | Single Entity Ownership |
Ketch Courtyard | Condotel or Resort Type Project |
Ocean Dunes | Insurance, ACV Excessive Deductible |
Ketch Courtyard is likely warrantable as a Freddie Mac loan. Updated evidence of insurance required for Ocean Dunes, as it may now be acceptable.
Meredith Shave – Sr. Mortgage Consultant Ben Stephens – Sr. Mortgage Consultant
904.556.6645 904.583.4321
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