Who It Is For
A condo can be non-warrantable for many reasons, from the building's finances to how many units are rented out. Buyers often find out late in the process, after they are already under contract.
- Buyers of condos in buildings that fail agency review
- Buyers in condo-hotels or buildings with many short-term rentals
- Buyers in buildings with pending repairs or special assessments
- Investors and second home buyers in coastal condo buildings
How It Works
Agency guidelines look at things like owner-occupancy, reserve funding, litigation, and commercial space. If a building misses one of those marks, standard loans are off the table, but portfolio and specialty lenders can still step in.
We review the condo documents early, including the declaration, by-laws, and budget, so you know where the building stands before your inspection period runs out.
Condo files are paperwork heavy. Because we process in house, one team gathers the association questionnaire and documents and keeps the whole thing moving.
What You Need to Qualify
- A down payment and reserves, as required by the lender
- Steady, documented income or an alternative income program
- A credit history the lender can review
- Condo documents and an association questionnaire for the lender to review
- Requirements vary by lender and building, and we will tell you exactly where you stand
Documents You Will Likely Need
- Condominium declaration, by-laws, and most recent budget
- Association questionnaire completed by the management company
- Signed sales contract, including all riders
- Pay stubs and W-2 forms, or tax returns if self-employed
- Bank statements for the last 3 months
Common Questions
How do I know if a condo is non-warrantable?
Often you will not know until a lender reviews the building. Send us the condo name or address early and we will start checking the documents before you are deep into the contract.
Is a non-warrantable condo a bad investment?
Not necessarily. Non-warrantable is a lending label, not a judgment on the building. It just means fewer lenders will finance it, and we work with the ones that do.
Can I use a non-warrantable condo loan for a rental?
Some lenders allow it, including for buildings with short-term rentals. We will match the lender to how you plan to use the unit.
General information only, not an offer to lend. Requirements vary by lender and program, and all loans are subject to credit approval, income verification, and property appraisal.