When a condo falls outside standard guidelines
A non-warrantable condo is in a project that does not meet conventional agency requirements. The reason may involve project insurance, commercial space, ownership concentration or hotel-like short-term rental operations. Permission for short-term rentals alone does not determine eligibility; the project needs a full review.
These units may have financing options through specialized lenders, including non-QM programs. Rates and costs can sometimes be competitive with conventional loans, but terms depend on the project, occupancy, borrower and lender. FHA and VA use separate condo eligibility rules, so their availability must be checked independently.
Some buyers value non-warrantable condos as investment or resort properties. Before purchasing, review the association documents, rental rules, insurance and financing options so the numbers work for your plans.
What to know
Condo projects can fall outside agency guidelines for reasons such as investor concentration, commercial space or project documentation. Michael can review the building and your intended use to help identify lender options.
Start with a conversation
Tell me where the property is, how you plan to use it and what you want the loan to accomplish. I can help you understand which details lenders will review and compare available paths.
What is non-warrantable condos?
A non-warrantable condo is a condominium in a project that does not satisfy Fannie Mae or Freddie Mac project requirements. Financing depends on the project and borrower profile.