Non-Warrantable Condo Loans
Learn about mortgage programs designed for non-conforming condos. Connect with lenders who understand condo requirements and offer specialized financing for unique properties.
Non-Warrantable Condo Loans: Financing for Unique Condominiums
Non-warrantable condo loans are designed for borrowers who want to finance condominiums that don't meet Fannie Mae and Freddie Mac guidelines.
If you're looking to purchase a unique condo with special circumstances, this program could be your path to homeownership.

What is a Non-Warrantable Condo Loan?
- Definition
- A non-warrantable condo loan is a specialized program that finances condominiums that don't meet Fannie Mae and Freddie Mac guidelines. These loans help you purchase condos with unique characteristics such as high investor concentration, pending litigation, incomplete construction, or special circumstances that make them ineligible for conventional financing.
- How it works
- These loans use specialized underwriting that understands the unique characteristics of non-warrantable condos. Lenders evaluate the condo's financial health, HOA governance, occupancy rates, and your ability to maintain the property while considering the condo's specific issues.
- Key advantage
- Non-warrantable condo loans bypass traditional lender restrictions on unique condos by using specialized underwriting that understands the specific characteristics and risks of non-conforming properties, making unique condo ownership accessible when conventional lenders cannot accommodate them.


How Non-Warrantable Condo Loans Work
These loans use specialized underwriting that understands the unique characteristics of non-warrantable condos. Lenders evaluate the condo's financial health, HOA governance, occupancy rates, and your ability to maintain the property while considering the condo's specific issues. The process includes specialized condo review and financial analysis.
Basic Non-Warrantable Condo Loan Eligibility
You may be eligible for a non-warrantable condo loan if you have:
- 700+ credit score
- 25% down payment
- Stable employment
- Condo in good financial condition
Common Non-Warrantable Condo Loan Eligibility Requirements
- Credit score:
- 700 FICO score
- Down payment:
- 25%
- Employment:
- Stable employment and income
- Loan amounts:
- Up to $2,000,000
- Reserves:
- 6 months of reserves
- Condo financials:
- HOA in good financial condition
- Litigation:
- No pending litigation against HOA
- Occupancy:
- May have high investor concentration
- Construction:
- May be new construction or incomplete
- Property type:
- Non-warrantable condos only
Did you know: Non-warrantable condo loans can help you qualify for up to $2,000,000 in financing.
Why You Need Another Lender
If you've been denied a mortgage for a unique condo, you're not alone. Many traditional banks simply don't offer programs designed for non-warrantable condos. They rely on standard underwriting that requires condos to meet strict Fannie Mae and Freddie Mac guidelines, which doesn't accommodate the unique characteristics of many desirable condominium properties.
Your first bank just doesn't offer the right program for you.
Think of it like when a customer asks for something your business doesn't offer. Maybe they want delivery but you only do pickup, or they need a service you don't provide. You're not saying no because there's anything wrong with them—you just don't offer that particular service. Same with mortgages. Traditional banks work great for most people, but they don't offer the programs that non-warrantable condo buyers need.
Traditional banks use conventional underwriting that works well for standard condos but struggles with unique properties. Your condo may have special circumstances like new construction, high investor concentration, or pending litigation, but conventional programs may not understand the value and potential of these unique properties. They see the non-conforming characteristics and can't approve you, even though the condo may be perfectly suitable for your needs.
Non-warrantable condo loans are perfect for 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, or anyone wanting to purchase condos with special circumstances.
This isn't about finding loopholes or gaming the system. It's about working with lenders who understand that unique condos can be excellent investments and homes. Non-warrantable condo loans are offered by lenders who work with unique properties every day. They look at your current situation—your stable income, strong credit, and the condo's specific characteristics—rather than just the non-conforming aspects.
For a no obligation conversation about your mortgage, contact Coby Matush (#1531494) of Novus Home Mortgage at 724-787-7778.
Example Use Cases and Scenarios
Did you know: Non-warrantable condo loans accept unique property characteristics for qualification.
How Do Non-Warrantable Condo Loans Work?
Non-warrantable condo loans follow the same basic mortgage process as conventional loans, with one key difference: condo-specific underwriting. This specialized approach allows buyers to qualify for unique condos by evaluating the property's specific characteristics and financial health.
The Non-Warrantable Condo Loan Process
- 1. Condo Review & Assessment Process
- The process begins with condo review where lenders examine the HOA financial statements, governing documents, and occupancy rates, followed by financial analysis to evaluate the condo's overall financial health and marketability. Lenders then complete property assessment to understand the specific non-warrantable characteristics, then finalize the eligibility determination based on your overall financial profile and the condo's unique situation. This process typically results in qualification for unique condos that may be denied by conventional lenders.
- 2. Standard Mortgage Process
- Everything else follows the same process as conventional loans: credit check with minimum 700 FICO score, property appraisal using specialized condo appraisal, title search to ensure clear property ownership, and standard mortgage documentation including loan application, disclosures, and insurance requirements. The only difference is how the condo is evaluated - everything else uses identical underwriting standards and consumer protections.
- 3. Underwriting
- Experienced underwriters review your complete profile using condo-specific assessment instead of traditional property evaluation. They assess your creditworthiness including income stability and debt-to-income ratio, property value through specialized condo appraisal and market analysis, and ability to maintain the property based on the condo's unique characteristics. The underwriting process includes the same risk assessment, just with specialized condo evaluation.
- 4. Approval & Closing
- Once approved, the closing process is identical to conventional mortgages. You'll sign the same documents including promissory note, deed of trust, and closing disclosure, pay the same types of fees such as origination, appraisal, and title insurance, and receive the same level of consumer protection including RESPA disclosures and right of rescission for refinances. The loan terms, interest rates, and repayment structure follow standard mortgage industry practices.
Non-Warrantable Condo Loans vs Conventional Mortgages
Understanding the key differences between non-warrantable condo loans and conventional mortgages can help you choose the right financing option for your situation.
Feature | Non-Warrantable Condo Loans | Conventional Loan |
---|---|---|
Who Qualifies | Buyers of non-warrantable condos, new construction buyers, investors in high investor concentration buildings, and those purchasing unique condo developments | W-2 employees, salaried workers |
Income Documentation | W-2s, pay stubs, tax returns, bank statements, and condo financial documentation | W-2s, pay stubs, tax returns |
Minimum Credit Score | 700 FICO score | 620 |
Minimum Down Payment | 25% down payment | 3% |
Private Mortgage Insurance | PMI required for loans with less than 20% equity | Private mortgage insurance (PMI) |
Occupancy Type | Primary residences, second homes, and investment properties | Primary residences, second homes, investment properties |
Property Type | Non-warrantable condominiums only | Single-family homes, condos, townhouses, 2-4 unit properties |
Loan Limits | Up to $2,000,000 depending on income and down payment | $766,550 (2024) |
Interest Rates | Above market rates | Market rates |
Processing Time | As few as 3 weeks | 30-45 days |
Closing Costs | Similar to conventional loans, may include additional processing fees | 2-5% of loan amount |
Prepayment Penalty | None | None |
Reserves Required | 6 months of reserves typically required | 2-6 months of PITI |
Debt-to-Income Ratio | Up to 45% | Up to 43% |
Maximum Loan Amount | $2,000,000 | $766,550 |
Appraisal Requirements | Specialized appraisal considering condo financials | Standard appraisal required |
Occupancy Requirements | Primary residence for 12 months | Primary residence for 12 months |
Feature | Non-Warrantable Condo Loans | Conventional Loan |
---|---|---|
Who Qualifies | Buyers of non-warrantable condos, new construction buyers, investors in high investor concentration buildings, and those purchasing unique condo developments | W-2 employees, salaried workers |
Income Documentation | W-2s, pay stubs, tax returns, bank statements, and condo financial documentation | W-2s, pay stubs, tax returns |
Minimum Credit Score | 700 FICO score | 620 |
Minimum Down Payment | 25% down payment | 3% |
Private Mortgage Insurance | PMI required for loans with less than 20% equity | Private mortgage insurance (PMI) |
Occupancy Type | Primary residences, second homes, and investment properties | Primary residences, second homes, investment properties |
Property Type | Non-warrantable condominiums only | Single-family homes, condos, townhouses, 2-4 unit properties |
Loan Limits | Up to $2,000,000 depending on income and down payment | $766,550 (2024) |
Interest Rates | Above market rates | Market rates |
Processing Time | As few as 3 weeks | 30-45 days |
Closing Costs | Similar to conventional loans, may include additional processing fees | 2-5% of loan amount |
Prepayment Penalty | None | None |
Reserves Required | 6 months of reserves typically required | 2-6 months of PITI |
Debt-to-Income Ratio | Up to 45% | Up to 43% |
Maximum Loan Amount | $2,000,000 | $766,550 |
Appraisal Requirements | Specialized appraisal considering condo financials | Standard appraisal required |
Occupancy Requirements | Primary residence for 12 months | Primary residence for 12 months |
Real-World Example: Non-Warrantable Condo Loans
The Software Engineer's Journey to New Construction Condo Ownership
A talented software engineer had been dreaming of buying a condo in a new development for months. With a stable position at a major tech company earning $120,000 annually, she felt confident about her financial situation. She had saved $87,500 for a down payment and found her perfect condo—a modern 2-bedroom unit in a new development listed at $350,000.
However, her mortgage application hit a major roadblock when the lender reviewed the condo's characteristics. The building had only 40% of units sold, which didn't meet Fannie Mae's requirement of 70% owner-occupancy for new construction. Despite having excellent credit (720 score), stable employment, and substantial savings, the conventional lender denied her application because the condo didn't meet warrantable guidelines.
Frustrated but determined, she began researching alternative financing options and discovered that another lender offered non-warrantable condo loans. This program would evaluate the condo's specific characteristics and her strong financial profile rather than just the non-conforming aspects. By focusing on her stable income, excellent credit, and the condo's marketability, the alternative lender was able to qualify her for a $262,500 loan with a 25% down payment.
The process was straightforward: she provided proof of stable employment, bank statements for down payment verification, and the condo's HOA financial statements. Within three weeks, she received approval and was able to purchase her dream condo. The slightly higher financing costs were a small price to pay for achieving her homeownership goals in the new development.
This story illustrates how non-warrantable condo loans can provide access to unique properties for buyers with strong financial credentials, making condo ownership possible when traditional lenders cannot accommodate the property's special circumstances.
Did you know: Non-warrantable condo loans require only 25% down payment.
Benefits & Considerations
Non-warrantable condo loans offer significant advantages for unique property buyers, but they also come with important considerations to weigh.
Key Benefits: Unique property access, specialized underwriting, flexible requirements
- Unique property access
- Qualify for condos with special characteristics that don't meet conventional guidelines, including new construction, high investor concentration, or pending litigation.
- Specialized underwriting
- Lenders understand the unique characteristics of non-warrantable condos and evaluate them appropriately rather than applying rigid conventional standards.
- Flexible requirements
- Programs accommodate various non-conforming characteristics while still maintaining appropriate risk assessment and borrower qualification.
- Large loan amounts
- Up to $2,000,000 depending on your income and down payment, making it possible to purchase the condo you want.
- Multiple occupancy types
- Primary residences, second homes, and investment properties are all eligible, giving you flexibility in your real estate goals.
- Proven solution
- Thousands of buyers have used this program successfully to achieve condo ownership in unique properties.
Important Considerations: Higher costs, condo requirements, specialized evaluation
- Higher costs
- Financing costs are typically 1-2% higher than conventional loans due to the specialized nature of the program and condo-specific risk assessment.
- Down payment
- Minimum 25% down payment required, which is higher than conventional loan options.
- Credit requirements
- 700 credit score or higher needed, with demonstrated financial stability and ability to maintain the property.
- Condo requirements
- Condo must be in good financial condition with no pending litigation that would significantly impact the property's value.
- Lender availability
- Not all lenders offer this specialized program, so you'll need to work with lenders who understand non-warrantable condo requirements.
Frequently Asked Questions About Non-Warrantable Condo Loans
Get answers to the most common questions about non-warrantable condo loans. Whether you're wondering about qualification requirements, condo characteristics, or how the process works, we've covered the essential information below.
What is a non-warrantable condo loan?
How do non-warrantable condo loans work?
Who qualifies for non-warrantable condo loans?
What documents do I need for a non-warrantable condo loan?
How much can I borrow with a non-warrantable condo loan?
What credit score do I need for non-warrantable condo loans?
What makes a condo non-warrantable?
Are non-warrantable condo loans more expensive than conventional loans?
How long does it take to get approved for a non-warrantable condo loan?
Can I use non-warrantable condo loans for investment properties?
What is the minimum down payment for non-warrantable condo loans?
Do non-warrantable condo loans require private mortgage insurance?
How do lenders evaluate non-warrantable condos?
Can I refinance with a non-warrantable condo loan?
What if the condo becomes warrantable later?
Next Steps: Continue With Your Mortgage
Non-warrantable condo loans may provide a path to condo ownership for buyers turned down by traditional lenders. Our listed loan officers understand condo requirements and can help determine if this program might fit your situation. They'll review your condo's characteristics, assess your financial profile, and guide you through the process.
For a no obligation conversation about your mortgage, contact Coby Matush (#1531494) of Novus Home Mortgage at 724-787-7778.

Coby Matush
Loan Officer at Novus Home Mortgage
Coby Matush Customer Reviews
Read verified customer reviews for Coby Matush at Novus Home Mortgage. This is real feedback from real borrowers who used Coby Matush and their colleagues for a mortgage loan.
"Michelle helped us for several months before we chose a home during the preapproval process and she was extremely great and responsive. Then we worked with Kevin and he was also really responsive and easy to contact by email and by phone. I felt like he was available when I had a question and I appreciated being able to tie off a lot of things by email since I'm usually working at my PC. He also explained things in a way that made sense and kept us updated on every step of the process along with videos that explained it. I appreciate all the help in purchasing our first home."
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Important Compliance Information
Disclaimer: This information is for educational purposes only. AnotherLender.com is not a lender and does not make loans. We connect borrowers with licensed mortgage professionals. All loan approvals are subject to lender underwriting guidelines and individual qualification. Rates and terms may vary. Consult with a qualified mortgage professional for personalized advice.