Question 1

Why would a conventional loan get turned down on a Miami-Dade condo that looks fine?

Accepted Answer

Because Fannie Mae's project rules look past the unit to the building. A condo project is ineligible for conventional financing if it "failed to pass state, county, or other jurisdictional mandatory inspections," or if it carries "any unfunded repairs costing more than $10,000 per unit that should be undertaken within the next 12 months." Miami-Dade runs two inspection regimes on top of that: the state milestone inspection at 30 years (or 25 if the local agency adopts it), and the county's own recertification program under section 8-11(f) of the county code. An older building that trips either one, or that can no longer waive reserves for a required Structural Integrity Reserve Study, can go conventionally unfinanceable overnight. We pull the association's inspection and reserve status before you go under contract; if the project doesn't qualify, our DSCR program can often still get the deal closed.

Question 2

I heard Miami condos within 3 miles of the coast need inspection at 25 years. Is that still the rule?

Accepted Answer

Not as a statewide rule, no. The original 2022 law set 25 years for buildings within three miles of the coast and 30 years everywhere else, but Senate Bill 154, signed June 9, 2023, deleted the coastal trigger and made 30 years the statewide default. What's left is a local option: a local enforcement agency can adopt 25 years for its own environmental conditions, and Miami-Dade has done exactly that under its county recertification code, separate from and older than the state milestone law. So a Miami-Dade building can still face inspection at 25 years, but as a county rule, not a Florida-wide coastal one. Confirm the specific building's trigger year before you count on financing timing.

Question 3

What should I budget for property tax on a conventional purchase in Miami-Dade?

Accepted Answer

Budget by city, not by county average, and use the non-homestead number, since you won't qualify for a homestead exemption on a rental. 2025 total millage runs from 15.51 mills in Key Biscayne up to 19.99 in the City of Miami, 18.76 in Miami Beach and 24.00 in Opa-locka. On a $600,000 assessment that's roughly $9,306 a year in Key Biscayne against $11,993 in the City of Miami, a swing of about $2,687 depending on jurisdiction alone. Every parcel also carries Florida's 10 percent non-homestead assessment cap, which resets on sale, so a seller's current tax bill can understate what you'll actually pay in year one. Price the specific address with the county appraiser's tax estimator before you underwrite the deal.

Question 4

How much does insurance eat into a conventional Miami-Dade rental's numbers?

Accepted Answer

Enough that it belongs in your numbers before you write the offer. As of March 2026, Miami-Dade's average homeowners premium including wind was $5,975, and its average condo unit owner premium was $2,801, more than double Orange County's $1,295 condo average. South Florida also litigates claims at 27.27 percent, versus 12.10 percent statewide, which is part of why the premiums run high. That escrow line goes straight into your conventional qualifying ratio, so get a real quote on the specific address and building type before you assume a rate.

Question 5

Miami-Dade's population is shrinking. Does that change how a conventional rental underwrites here?

Accepted Answer

It changes the demand story, not the day-to-day economics. Miami-Dade lost population in the year to July 2025, down 10,115 to 2,802,029, as domestic out-migration widened every year since 2022 and international migration, the county's real growth engine, fell by nearly half since 2023. That's a real shift from the headline "people are pouring into Miami" story. It hasn't shown up in rent: single-family rents in the metro were $3,461 a month in June 2026, the highest of any Florida metro in our research and up 1.9 percent year over year. On a conventional file your qualifying income still comes from your tax returns, not the rental market, so the population trend matters more for your exit strategy and your read on future appreciation than for the loan itself.

Question 6

What is a conventional investment property loan?

Accepted Answer

It is standard, competitively priced financing for a non-owner-occupied investment property, the long-term loan you take when your file fits the conventional box. It usually carries a lower rate than a bridge or DSCR loan, in exchange for full documentation.

Question 7

How is it different from a DSCR loan?

Accepted Answer

A conventional loan qualifies on your documented personal income and credit, while a DSCR loan qualifies on the property's rent. Conventional pricing is often lower if you can document your income and you are within the limit on financed properties; DSCR is easier to scale and skips the income docs. We compare both and put you in the one that fits.

Question 8

How much do I need to put down?

Accepted Answer

Plan on roughly 20% to 25% down on an investment-property purchase, with the best pricing at lower leverage and higher credit. Cash-out refinances are typically capped a bit lower than purchases.

Question 9

What credit score do I need?

Accepted Answer

Conventional investment financing generally wants a credit score around 580 or higher, and your rate improves meaningfully as your score and reserves go up. We will tell you up front where your file lands.

Question 10

What can I use it for?

Accepted Answer

Purchases, rate-and-term refinances, and cash-out refinances on non-owner-occupied 1-4 unit investment property. If you will live in the property, that is owner-occupied financing, which we refer to a trusted partner rather than originate here.

Question 11

What documents are required?

Accepted Answer

Because it is fully documented, expect to provide income verification, tax returns, bank statements, and the standard conventional paperwork. If that documentation is a hurdle, our DSCR and bank-statement programs are the no-tax-return alternatives.

Conventional Investment in Miami

How it works

Run your Conventional Investment numbers.

Conventional Investment in Miami: local questions

Conventional Investment questions, answered.

Guides for Conventional Investment

Other programs in Miami

Funding Miami deals fast.