Solutions for Properties Outside the Box
Non-warrantable condo loans finance units in buildings that don’t meet traditional guidelines set by Fannie Mae or Freddie Mac, such as high investor ownership or litigation issues. Specialized lenders provide these loans with adjusted terms and underwriting.
Highlights
Designed for condo units that do not meet Fannie Mae/Freddie Mac guidelines
Common issues: high investor concentration, ongoing litigation, or low HOA reserves
Requires specialized lenders with flexible guidelines
Ideal for buyers of vacation homes, investment condos, or unique properties
Choose Your Path
FAQ
What makes a condo “non-warrantable”?
Common reasons include too many investor-owned units, ongoing litigation, high HOA delinquencies, lack of insurance or a low budget reserve.
What are the biggest hurdles in financing one?
Stricter underwriting, higher interest rates, limited lender options, and slower approval timelines.
Are non-warrantable condos riskier to own?
They can be, limited financing options may reduce future resale value or buyer pool. However, each property is unique and should be analyzed from a variety of angles.
Will I pay a higher rate for these loans?
Typically yes, rates reflect the added risk for lenders.
Is the down payment requirement higher?
Typically yes, ranging from 10-20% based on the loan structure.
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Disclaimer: Information provided is for educational purposes only and is subject to change. All loan programs, interest rates, down payment requirements, and terms are subject to credit approval, underwriting guidelines, investor requirements, and may change without notice. Not all applicants will qualify. Restrictions may apply, including but not limited to geographic limitations, property type, and occupancy requirements.