A condo that was financeable last month can become non-warrantable overnight: investor concentration shifts, a new assessment gets passed, litigation appears. Our Non-Warrantable Condo program finances these properties across all income documentation types, with a two-page questionnaire instead of the standard seven-page version and a fast decision from senior management.
If you have a condo deal that’s fallen out or a property you’re unsure about, submit your scenario and we’ll give you a clear answer fast.
Program Highlights
- Loan Amounts: Up to $3,000,000
- LTV: Up to 80%
- Commercial Space: Up to 50% of the building permitted; exceptions considered above that
- New Construction: Permitted even when the builder still controls the HOA
- High-Rise Properties: Eligible at reduced LTV via senior management approval
- Investor Concentration: Up to 90%, reviewed with reduced LTV
- Flexible Vesting: LLC and trust vesting accepted
- Primary & Second Homes: No prepayment penalty on owner-occupied transactions
- Investment Properties: 3-year prepayment penalty standard, buyable down to 1 or 2 years or bought out entirely
Income Documentation Options
Non-warrantable condo financing is available across all income types: full doc (1 or 2-year), 1099-only, bank statement (12 or 24 months), DSCR, asset depletion and qualifier, foreign national, and merged income types.
A non-warrantable property doesn’t limit how a borrower qualifies. A self-employed borrower, a foreign national, and a W-2 borrower supplementing income with asset depletion can all be structured on the same building.
How We Evaluate Non-Warrantable Condos
We review every project individually with no pre-approved or pre-denied condo list. Our two-page questionnaire covers what we need to know, and if another lender’s questionnaire answers the same questions, we’ll typically accept it so brokers don’t pay for a second one.
Litigation isn’t an automatic disqualifier; we review what the dispute is actually about. Slip-and-falls, facade disputes, and routine HOA matters have all been approved, while structural and health-and-safety litigation is much harder to work with. HOA reserve shortfalls and single-entity ownership concentration are reviewed case by case, with project size and compensating factors both weighed. Senior management signs off on all exception loans, and that decision holds through underwriting.
What Makes a Condo Non-Warrantable
Litigation, HOA reserve shortfalls, high investor concentration, and above-guideline commercial space are the most common reasons a project falls outside agency guidelines. Warrantability can also shift with no warning: a building you’ve closed in before can go non-warrantable mid-transaction if the HOA’s litigation status or reserve funding changes.
We Will Not Lend When:
- The rental pool is mandatory with no opt-out
- The owner is fully restricted from occupying the unit
- The property lacks a full livable kitchen
- The complex name includes “Hotel” or “Motel”
We Will Lend On:
- Optional rental pools
- Investor concentration up to 90%, at reduced LTV
- Short-term rental properties where Airbnb or VRBO income is documented via annual platform statements (provided the area and HOA permit it)
- Units with compensating factors below our standard square footage guideline
The Built-In Refi Opportunity
Many non-warrantable conditions are temporary. Litigation resolves. Projects complete. Investor concentration normalizes. When a condo regains warrantable status, your client may refinance into a conventional loan, and that’s your business. Placing a borrower in a non-warrantable condo today is often the start of a long-term client relationship.
Ready to save the deal?
Submit your loan scenario or become an approved broker. Download our Condo Questionnaire to get a head start.
Frequently Asked Questions
What if a condo turns non-warrantable after I’ve already submitted?
Contact your Account Executive immediately. In most cases we can transition the file onto our non-warrantable program without starting over, and the appraisal, credit, and asset documentation already in the file usually carry forward.
Will you accept a condo questionnaire from another lender?
In most cases, yes, provided it covers HOA reserves, owner-occupancy percentage, single-entity ownership concentration, litigation, insurance, and rental policy. Where there are gaps, we’ll often follow up with the HOA directly rather than re-ordering the full document.
Can short-term rental income qualify on DSCR?
Yes. Airbnb and VRBO income is accepted using annual platform statements averaged over 12 or 24 months, with an 80% multiplier applied to account for vacancy and seasonality. Confirm the municipality and HOA both permit short-term rentals before structuring the loan around it.
Is there a minimum square footage requirement?
Our standard guideline is 600 square feet, though we’ve closed smaller units when the file presents strong compensating factors: a full livable kitchen, comparable sales in the building, and a lower LTV all help the case.
Can a first-time investor use DSCR on a non-warrantable condo?
Yes, provided the borrower owns their primary residence. LTV will typically be more conservative than for experienced investors, and reserves, credit depth, and the property’s rental demand all factor into the file.
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