Non-Warrantable Condo Loans

Program Overview

Non-Warrantable Condo Loans provide financing for condominiums that don't meet Fannie Mae and Freddie Mac guidelines. These programs are designed for condos with unique characteristics that make them ineligible for conventional financing.

What Makes a Condo Non-Warrantable?

A condo may be considered non-warrantable if it has:

• High Investor Concentration: More than 50% of units are investor-owned
• Pending Litigation: HOA is involved in legal proceedings
• Incomplete Construction: New construction with insufficient sales
• Commercial Space: High percentage of commercial space
• Hotel/Resort Use: Units used for short-term rentals
• Financial Issues: HOA financial problems or insufficient reserves

Key Benefits

• Flexible Guidelines: Accommodate condos that don't meet conventional standards
• Competitive Rates: Rates comparable to conventional loans
• Fast Processing: Streamlined underwriting for qualified condos
• Investment Properties: Available for primary, second homes, and investment
• No PMI: Higher down payment requirements eliminate PMI

Program Requirements

Credit Requirements

• Minimum Credit Score: 700
• Credit History: Good credit history required
• Credit Inquiries: Limited recent inquiries preferred
• Payment History: No recent late payments

Condo Requirements

• Financial Health: HOA must be in good financial condition
• Reserves: Adequate reserve funds maintained
• Insurance: Proper insurance coverage in place
• No Litigation: No pending litigation against the HOA
• Occupancy: Must meet minimum owner-occupancy requirements

Property Requirements

• Property Types: Non-warrantable condos only
• Occupancy: Primary residence, second home, or investment property
• Location: All 50 states
• Property Condition: Must be in good condition

Down Payment Requirements

• Minimum Down Payment: 25%
• Source of Funds: Must be properly documented
• Gift Funds: Allowed with proper documentation
• Asset Verification: Down payment source must be verified

What to Expect

Step 1: Condo Review

We'll review the condo's financial statements, governing documents, and overall health to determine if it qualifies for our non-warrantable program.

Step 2: Program Selection

Based on the condo's characteristics and your financial profile, we'll recommend the best financing option. This may include different terms based on the specific issues.

Step 3: Application Process

Complete the mortgage application with our condo-specific underwriting process. We'll work with the HOA to gather necessary documentation.

Step 4: Condo Approval

Our specialized team will review and approve the condo for financing. This includes verifying all required documentation and ensuring compliance with our guidelines.

Step 5: Closing & Funding

Once approved, you'll proceed to closing with terms that reflect the condo's unique characteristics.

Who This Program Helps

• Buyers of new construction condos with insufficient sales
• Investors purchasing in high investor concentration buildings
• Buyers of condo hotels or resort properties
• Those purchasing in buildings with pending litigation
• Buyers of unique condo developments that don't meet conventional guidelines

Avery Brooks Mortgage

• Phone: (555) 123-4567
• Email: avery@averybrooks.com
• NMLS: #1234567

Don't let conventional lending guidelines prevent you from financing your dream condo. Our specialized programs can help.