Non-Warrantable Condo
Great unit, difficult building.
Financing for condominiums that fail agency project review because of investor concentration, litigation, commercial space, or incomplete reserves.
What makes this loan different
- Litigation, investor concentration, and single-entity ownership considered
- Projects reviewed individually rather than by checklist
- Primary, second home, and investment occupancy
- Fixed and ARM structures available
Who this is built for
- Buyers in older urban buildings
- Units in projects with pending HOA litigation
- Investor-heavy or mixed-use buildings
The project, not the borrower
In a non-warrantable situation the buyer is usually well qualified and the building is the problem. Agency guidelines reject the entire project for a handful of reasons, and every conventional lender applies the same list.
Portfolio lenders review the project on its merits: what the litigation actually is, whether it is insured, how the reserves look, and how the building has performed.
What we need to review
The HOA questionnaire, current budget and reserve study, insurance certificates, and details of any litigation. Most of this comes from the association within a few days.
What lenders typically ask for
- A completed condo questionnaire from the HOA or management company
- HOA budget and reserve study
- The master insurance policy, including any walls-in or fidelity coverage
- Litigation disclosure where any is pending
- Owner-occupancy ratio and single-entity ownership concentration
- Standard borrower income, credit, and asset documentation
Requirements vary by lender and by file. This is a general picture of what is commonly requested, not a checklist for a specific loan.
Worth knowing
Why it is non-warrantable changes the answer.
Investor concentration, a single owner holding too many units, pending litigation, inadequate reserves, and excess commercial space are all different problems with different lender appetites. The specific reason determines which lenders can look at it.
Some reasons remain disqualifying.
Structural litigation or serious safety findings can put a project outside the reach of even non-warrantable programs. It is worth identifying the issue before an offer rather than after.
The HOA controls the timeline.
Questionnaires and financials come from the association, and response times vary from days to weeks. This is the most common source of delay on condo financing.
Down payment and rate reflect the project.
Pricing on non-warrantable financing accounts for the project's condition, not just the borrower's. A strong buyer does not fully offset a troubled association.
See what this program would take in your case.
We are brokers — this program is shopped across hundreds of wholesale lenders, not quoted off one rate sheet. A short application gives us enough to compare real options.
Program availability, terms, guidelines, and documentation requirements vary by lender and are subject to underwriting and change without notice. This is not a commitment to lend.