Financing a Fort Lauderdale Condo: What to Budget For

Thinking about buying a condo in Fort Lauderdale but not sure how to budget beyond the mortgage? You are not alone. In coastal Broward, association fees, insurance, reserves, and even the building’s loan eligibility can change your monthly cost and financing options. In this guide, you will learn what to plan for, how to compare buildings side by side, and what questions to ask before you commit. Let’s dive in.

Your monthly condo budget

Your monthly payment is more than principal and interest. In a condo, the association’s operating costs and insurance choices flow through to you in your dues. Lenders also look at these costs when they calculate your debt-to-income ratio.

Association fees explained

Condo fees typically cover exterior maintenance and repairs, common-area utilities, elevator and parking upkeep, pool and amenity service, landscaping, management, security, trash, pest control, and janitorial for shared spaces. Some buildings include cable or internet under bulk contracts. In a few cases, central systems like air or heat are part of the association. Utilities can be separately metered, so review what is and is not included.

Because your lender counts association fees in your recurring housing costs, higher dues can reduce your loan amount or change the program you qualify for. Always confirm the current monthly amount and any pending increases.

Owner costs outside the HOA

Plan for expenses the association does not cover:

• Mortgage principal and interest
• Broward County property taxes
• HO-6 unit owner insurance
• Utilities not included in the HOA (electric, gas, cable or internet if not bulk)
• Parking fees or storage if applicable

Reserves and capital projects

A healthy reserve fund protects you from surprise costs. Reserves are dollars the association sets aside for major repairs or replacements such as roofs, elevators, facade work, painting, or shared HVAC systems. A professional reserve study estimates when big-ticket items will need attention and how much to save each year.

Well-funded reserves lower the chance of a special assessment. Thin reserves, especially in older or amenity-rich buildings, increase your risk. Ask for the reserve study and the current-year budget to see how reserves are funded.

Special assessments

Special assessments are one-time charges when reserves or operating funds are not enough. They can pay for major repairs, hurricane damage, or large insurance deductibles. Look for a pattern of frequent assessments or very large past assessments without a clear long-term plan. Review the governing documents to see how and when the board can levy assessments.

Insurance in Fort Lauderdale condos

Insurance choices in South Florida are a key driver of condo budgets. Understanding what the building policy covers and what you must insure will help you avoid gaps.

Master policy vs. your HO-6

The association’s master policy usually insures the building shell and common elements. Coverage can be bare walls, single entity, or all-in. The only way to know where the line is drawn is to review the certificate of insurance and policy form. Your lender will expect adequate replacement cost coverage and acceptable deductibles.

You will still need an HO-6 policy. It typically covers interior finishes and improvements, your personal property, personal liability, and loss assessment coverage tied to an insured loss. Loss assessment limits can be low unless you increase them, so ask your insurance agent to quote higher limits if needed.

Flood insurance in coastal Broward

Many Fort Lauderdale buildings sit in FEMA Special Flood Hazard Areas. When a building is in a flood zone and you use a federally backed loan, flood insurance is required. A condominium association can purchase a Residential Condominium Building Association Policy that covers the building, but not the contents in your unit. You may still need contents or HO-6 flood coverage. Flood premiums in coastal areas can be substantial, and association flood costs are often baked into HOA dues.

Hurricane and wind coverage

Wind and hurricane coverage is essential. Florida policies often carry hurricane deductibles as a percentage of insured value, commonly several percent. That can translate into large dollar amounts if a storm triggers a claim. Some associations handle these deductibles at the building level, while others allocate them to owners based on unit share. Confirm the deductible amounts and how they are applied.

In recent years, insurer exits and premium increases have pushed association insurance costs higher across Florida. Some boards have responded with higher deductibles or shifted more exposure to unit owners. Expect insurance to be a notable line item in the association budget.

How building traits affect your mortgage

Condo financing looks at both you and the building. A project that fails review can limit your loan options or increase your rate and down payment.

What lenders evaluate

• Owner-occupancy ratio. Lenders and agencies often require a minimum share of owner-occupied units.
• Concentration of ownership. One entity owning many units can be a concern.
• Commercial space. Too much non-residential area can make a project ineligible.
• Insurance adequacy. Coverage limits, policy type, and deductibles must meet program rules.
• Reserves and budget. Weak reserves or poor financial management can render a project non-warrantable.
• Litigation. Material or ongoing lawsuits, especially those tied to structural or financial risk, are red flags.
• Pending or required structural repairs. Major deferred maintenance can derail approval.
• Age and condition. Older buildings may require recent engineering or recertification reports.
• Delinquency rates. High owner delinquency in dues can block approval.

Program notes to keep in mind

• FHA maintains condo eligibility criteria and an approved project list. Reserves, insurance, and litigation get close review.
• Fannie Mae and Freddie Mac require a project review with budgets, reserves, insurance, litigation disclosures, and occupancy data.
• Jumbo and portfolio lenders set their own rules. They may consider projects agencies decline, often with higher rates or larger down payments.

What it means for you

If a building is ineligible, you may not be able to use certain programs, or you may need a different loan type. You could face a higher down payment or premium pricing if the project has risk factors like low owner occupancy or weak reserves. Protect yourself with condo-document and project-approval contingencies, and have a backup plan if the building fails underwriting.

Due diligence checklist for Fort Lauderdale condos

A thoughtful review can save you from costly surprises. Use this checklist to compare buildings apples to apples.

Documents to request

• Current year operating budget and prior year actuals
• Reserve study and any updates
• Certificate of insurance with coverage summary and deductible terms, including wind and hurricane
• Minutes of board meetings for the last 12 to 24 months
• Most recent audited or compiled financial statements
• Owner delinquency report
• Governing documents, bylaws, and rules
• List of pending or recent special assessments with amounts and schedules
• Litigation disclosures
• Condominium questionnaire for lender review, if available
• Building recertification and engineering reports
• Flood zone determination and any elevation certificates

Questions to ask management

• What percent of recommended reserves is currently funded?
• Have special assessments been levied in the last 5 to 10 years, and for what?
• What are the hurricane and non-wind deductibles, and how are deductibles allocated to owners?
• Is the project eligible with FHA, Fannie Mae, and Freddie Mac? Has it ever been denied?
• What percentage of units are owner-occupied? Does any owner control multiple units?
• Are any major capital projects planned? Any deferred maintenance?
• Have recent structural or safety inspections identified required repairs?

Red flags to watch

• Large or frequent special assessments without a long-term plan
• Very low reserve balances relative to upcoming repairs
• Significant or undisclosed litigation
• High hurricane deductible percentages that could lead to large owner assessments
• High delinquency rates in dues
• Ineligibility with major mortgage programs with no viable alternative for your profile

Build a realistic budget buffer

Create a worksheet that includes:

• Mortgage principal and interest
• Property tax estimate
• HOA dues
• HO-6 policy and any flood contents coverage you need
• Utilities not covered by the HOA and parking fees
• A contingency savings line for likely assessment risk based on the reserve study and building age
• One-time closing items such as transfer fees, first month’s dues, a capital contribution if required, and any insurer transfer fees

Local context in Fort Lauderdale

Coastal location is part of the appeal here, and it carries budget realities. Low-lying areas in Fort Lauderdale and Broward have elevated flood risk. Flood designations influence lender requirements and the association’s flood insurance costs. For parcel-level clarity, review the building’s flood zone determination and any elevation certificates.

Municipalities across South Florida have tightened or reviewed building inspection and recertification rules after high-profile failures. Ask the association about any local recertification obligations, inspection outcomes, and required repairs that could lead to assessments.

Property taxes in Broward County are billed separately from HOA dues and should be included in your monthly planning. HOA fees vary widely across the area based on age, amenities, waterfront exposure, and whether utilities and insurance are included. Instead of focusing on an average number, compare each building’s actual line items and reserve plan.

A simple step-by-step plan

Use this approach to compare buildings without the guesswork:

1. Start with your pre-approval. Confirm with your lender which condo programs you can use and what project criteria matter for your loan.
2. Gather the documents. Request the budget, reserve study, insurance certificates, litigation disclosures, and occupancy data for each building.
3. Map what dues include. Note utilities, insurance components, and amenities covered versus what you must pay separately.
4. Review reserves and assessments. Check the reserve study funding level and look for any pattern of special assessments.
5. Understand insurance exposure. Confirm hurricane and wind deductibles and how they are allocated. Ask about flood insurance status.
6. Estimate your total monthly. Add mortgage, taxes, HOA dues, HO-6, utilities, and parking. Build a contingency for potential assessments.
7. Confirm project eligibility. Have your lender run the condo questionnaire or project review early. Adjust your plan if the building fails review.

The bottom line

Financing a Fort Lauderdale condo is about the building as much as the unit. When you understand what HOA dues really cover, how insurance and reserves work, and how lenders view the project, you can budget with confidence and avoid surprises. If you want a second set of eyes on a building’s documents or help comparing options side by side, our team is here to help.

Ready to run the numbers and find the right building? Reach out to Canaval & Gomez for a friendly, data-informed consultation that puts your goals first.

FAQs

What recurring costs should I budget for in a Fort Lauderdale condo?

• Plan for mortgage principal and interest, property taxes, HOA dues, HO-6 insurance, utilities not covered by the HOA, and any parking or storage fees.

How do condo reserves and reserve studies affect my risk?

• Strong reserves and a current reserve study lower the chance of special assessments for major repairs. Thin reserves increase your exposure.

What does the HOA master policy cover versus my HO-6?

• The master policy covers the building and common elements, while your HO-6 covers interior finishes, personal property, liability, and loss assessment coverage. Review the certificate of insurance to confirm details.

Do I need flood insurance for a Fort Lauderdale condo?

• If the building is in a FEMA Special Flood Hazard Area and you use a federally backed loan, flood coverage is required. The association’s flood policy does not cover your unit contents.

How can a building’s characteristics change my mortgage options?

• Factors like owner-occupancy, insurance adequacy, reserves, litigation, and structural issues can limit loan programs or require higher down payments and pricing.

What red flags should make me reconsider a building?

• Frequent or large special assessments, very low reserves, significant litigation, high hurricane deductibles, high delinquency rates, or ineligibility with major mortgage programs are key warning signs.