Non-warrantable condo loans
A non-warrantable condo is a condominium project that doesn’t qualify for Conventional or Fannie Mae or Freddie Mac agency financing
This doesn’t mean a non-warrantable condo can’t be financed. It just needs a special type of loan and this is something that we are experts on. Keep in mind that the the borrower may qualify perfectly — but the building can still kill the loan.
We review both the borrower and the building to find financing options for condo projects that do not meet standard agency guidelines.
Andes Mortgage · NMLS #2187991
Licensed in GA, FL, TX, SC, AL
Mortgage pros since 2013
What does Non-Warrantable actually mean?
A “non-warrantable” condo just means the project doesn’t meet Fannie Mae or Freddie Mac rules — not that it’s a bad building or that you can’t buy it.
Non-warrantable condos are financed every day through portfolio and Non-QM programs. What matters is the exact reason the project is non-warrantable. Some reasons are routine and easy to work around. A few are deal-killers no lender will touch.
At Andes, we work with over 30 different nationwide wholesale lenders who underwrite non-warrantable condos. Our job is to match your deal to the best one where the guidelines fit.
Warrantable vs. non-warrantable condos explained in plain English
A project that fails one or more of those agency rules. The unit itself can be beautiful and the borrower fully qualified — but because of something about the project, it needs a portfolio or Non-QM loan instead of a standard conventional one.
A project that meets Fannie Mae or Freddie Mac condo rules — things like owner-occupancy mix, reserves, insurance, litigation status and how the building operates. Warrantable projects qualify for standard conventional, FHA and VA financing at the best rates and lowest down payments.
What makes a condo non-warrantable — and which problems we can still finance
Alternative financing can solve many project-level eligibility problems. But, it’s not a workaround for every structural, safety or insurance concern.
Often financeable
- High investor / rental concentration — too many non-owner-occupied units
- Single-entity ownership — one owner holds a large share of units
- Commercial space in the building (retail, offices) up to program limits
- Some HOA dues delinquency among owners
- New construction / low presale — not enough units sold yet
- Non-structural litigation — e.g. an insured slip-and-fall claim
- Condotel & short-term-rental projects (dedicated programs)
Typically deal killers
- Active structural problems or a failed structural inspection
- Critical, unfunded repairs the building must make
- Life-safety issues, evacuation or condemnation orders
- Structural-integrity litigation against the association
- Insufficient master insurance coverage
- Severe financial instability in the HOA
- Major deferred maintenance left unaddressed
The right column isn’t about our appetite — it’s about safety. When a building has an open structural or life-safety problem, that risk usually can’t be financed by anyone until it’s resolved. Everything on the left is a paperwork-and-program problem, which is exactly what we solve.
Can you finance a non-warrantable condo? Yes — here's roughly how it looks
Exact terms depend on the program, the project and your file. These are general ranges, not a commitment to lend.
on a primary residence, program-dependent. Investment properties are typically structured on a DSCR loan using the rent.
all eligible. You can close an investment purchase in an LLC.
W-2, bank statement, 1099, P&L, asset depletion, DSCR and foreign-national paths all exist for condos.
The programs we use for non-warrantable condos
We’re an independent brokerage, so we match your building and your income to the right lender — instead of forcing one product.
Standard income documentation on a portfolio loan that allows non-warrantable projects.
Qualify on deposits, 1099s, a profit-and-loss, or your assets instead of tax returns.
Qualify on the property’s rent, not your personal income. Close in an entity, use short-term rents on eligible projects.
Financing for non-U.S. citizens on eligible condo projects, including investment purchases.
Dedicated programs for condo-hotel and Airbnb-style projects, with short-term rents used to qualify on eligible loans.
Answer a few questions and we’ll point you to the condo program that fits your building and income.
Condo review rules changed in August 2026
Fannie Mae and Freddie Mac overhauled how condo projects qualify. It cuts both ways — and it’s worth understanding before you make an offer.
The agencies retired the streamlined “Limited Review” shortcut for many established projects. At the same time, they loosened a rule that had made a lot of buildings non-warrantable in the first place.
More projects now face a deeper full review of the association’s reserves, insurance and litigation. Some closings may need extra documentation and time.
The old cap on investor-owned units was removed — so certain projects that were non-warrantable can now qualify for conventional financing again.
Before you make an offer — or before another lender denies the building
Send us the project and we’ll review it against our lenders’ condo rules, then tell you exactly what’s flagging it and which programs can close. No cost, no obligation.
Address, project name, occupancy, and any known issues — litigation, assessments, structural repairs.
We check it against every condo program we broker, including Non-QM and DSCR.
The exact constraint, whether it’s financeable, and the path — before you’re under contract.
Send us the condo listing or buyer for a second review. We’ll tell you fast whether it’s saveable.
The ranges on this page reflect the condo and Non-QM programs Andes Mortgage brokers through its wholesale lenders, plus current Fannie Mae, Freddie Mac, FHA and VA project standards. Specific loan-to-value limits, credit-score minimums, reserve and project requirements are program-dependent and are confirmed for your exact building and file at the time of quote. Nothing here is a commitment to lend or an offer of credit.
Last verified: August 2026 · Guidelines subject to change without notice
Marcos Zambrano
President, Andes Mortgage · MLO NMLS #988935 · Mortgage professional since 2013
Non-warrantable condo FAQ
What makes a condo non-warrantable?
A project becomes non-warrantable when it fails a Fannie Mae or Freddie Mac rule — common reasons include high investor concentration, one owner holding many units, too much commercial space, HOA delinquency, low presale on new construction, condotel characteristics, or pending litigation. The specific reason determines whether it’s an easy fix or a deal-killer.
Can you actually get a loan on a non-warrantable condo?
Yes, in most cases. Non-warrantable condos are financed through portfolio and Non-QM programs rather than standard conventional loans. The main exceptions are buildings with active structural, life-safety or critical-repair problems, which usually can’t be financed by anyone until resolved.
How much down payment do I need?
It’s program-dependent. Primary residences can start in the ~10%–20% range, while investment properties are usually structured on a DSCR loan with a larger down payment. Condotels typically require more down. We’ll confirm the exact number for your building and file.
Are investment properties and second homes eligible?
Yes. Primary residences, second homes and investment properties can all be financed on non-warrantable projects, and investment purchases can be closed in an LLC.
Can a self-employed borrower qualify?
Yes. We offer bank-statement, 1099, profit-and-loss and asset-depletion programs that let self-employed buyers qualify without traditional tax-return income — and those programs allow non-warrantable projects.
Can a building with a special assessment or litigation qualify?
Often, yes — if the litigation is non-structural (for example, an insured liability claim) and the assessment is understood and funded. Litigation involving the building’s structural integrity is generally not financeable. This is exactly what our pre-screen checks.
Are condotels and Airbnb condos eligible?
Many are. We have dedicated condotel and short-term-rental programs, and on eligible loans you can use short-term rental income to qualify. Requirements are stricter than a standard condo, so send us the project and we’ll confirm.
Why are rates higher on non-warrantable condos?
Because these loans are held in portfolio or sold outside the agencies, the lender takes on more project risk, which is priced into the rate. The gap is often smaller than buyers expect, and it can be well worth it to close on the right building.
How can I tell if a condo is warrantable before I make an offer?
You usually can’t tell from the listing — it takes reviewing the HOA questionnaire, budget, insurance and litigation status. That’s the point of our free condo pre-screen: send us the project and we’ll tell you where it stands before you’re under contract.
Let's find out if your condo can close
Start with the Mortgage Match™ and we’ll route you to the right condo program — or send us the building for a free pre-screen.
Andes Mortgage LLC · NMLS #2187991 · Marcos Zambrano MLO NMLS #988935. Licensed for consumer lending in Georgia, Florida, Texas, South Carolina and Alabama. Business-purpose (DSCR) lending available in additional states.
This page is for informational purposes only and is not a commitment to lend, an offer of credit, or a guarantee of any rate, term or program. Loan approval, loan-to-value limits, credit-score minimums, reserve requirements and condo-project eligibility are subject to full underwriting, current lender and agency guidelines, and verification of the specific project. Rates and programs are subject to change without notice. Equal Housing Lender.