Warrantable vs. non-warrantable condos
Here’s the difference in one sentence: a warrantable condo meets Fannie Mae and Freddie Mac rules, and a non-warrantable one doesn’t. Both Fannie and Freddie govern the guidelines for conventional mortgages.
That’s it. It’s about the building — not you, and not how nice the unit is.
Let’s break down what makes a condo warrantable vs non-warrantable and how to find out where yours stands.
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Don’t overcomplicate it. “Warrantable” just means Fannie Mae or Freddie Mac will back a loan in that project, so it qualifies for standard conventional financing at the best rates.
“Non-warrantable” means the project falls outside those rules, so it needs a portfolio or Non-QM loan instead. A non-warrantable condo is not a bad condo — it just has to be financed a different way.
What is a warrantable condo?
A warrantable condo is a unit in a project that meets Fannie Mae or Freddie Mac’s condo-project guidelines. Because the agencies will buy the loan, you get conventional, FHA and VA financing at standard rates.
- Mostly owner-occupied, with a healthy owner-to-renter mix
- Adequately funded reserves and a stable HOA budget
- Proper master insurance in place
- No major litigation involving the building's structure or safety
- Completed construction with the HOA turned over to owners
- No single owner or entity controlling too many units
Warrantable status unlocks the cheapest, easiest financing: conventional loans with low down payments, plus FHA and VA on approved projects.
For most buyers, a warrantable condo behaves just like financing a single-family home — the building simply passes review in the background.
What is a non-warrantable condo?
A non-warrantable condo is a unit in a project that doesn’t meet those agency guidelines. The unit can be perfect and you can be fully qualified — but because of something about the project, Fannie and Freddie won’t back it, so it needs a portfolio or Non-QM loan.
What makes a condo non-warrantable?
Any one of these project characteristics can make a condo non-warrantable. Some are common and routine; a few are more serious.
Too high investor concentration
Too many units are rentals rather than owner-occupied.
Too much commercial space
A large portion of the building is retail or office space.
Pending litigation
The HOA is involved in a lawsuit — especially about the structure.
Inadequate reserves or budget
The HOA doesn't set aside enough for future repairs.
Single entity ownership
One person or company owns a large share of the units.
New construction/low presale
Not enough units have sold yet in a new or converting project.
Condotel or short-term rentals
The project operates like a hotel or allows nightly rentals.
Insurance or structural issues
Missing coverage, deferred maintenance, or critical repairs.
Non-warrantable doesn’t mean unfinanceable
Most of these are routine problems that portfolio and Non-QM lenders finance every day. The exceptions are active structural, safety or critical-repair issues, which are hard for anyone to finance until they’re resolved. See which problems we can finance →
Warrantable vs Non-Warrantable at a glance
The same unit can be a very different loan depending on which bucket the project falls into.
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Warrantable
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Non-Warrantable
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Meets Fannie/Freddie rules
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Yes
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No
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Loan types available
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Conventional, FHA, VA, Jumbo or Non-QM
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Portfolio, Non-QM, DSCR, Foreign Investor
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Typical interest rates
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Standard, lowest available
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Normally higher
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Down payment required
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As low as 3–5% (program-dependent)
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Typically starts at 20%+ down
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Who approves the building
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Fits agency Fannie Mae or Freddie Mac guidelines
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Each lender's own project rules
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Best for
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Most standard condo purchases
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Condotels, investor-heavy, litigation, new builds
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How do you find out if a condo is warrantable?
You usually can’t tell from the listing — We see whether or not the condo is warrantable through the HOA documentation.
Here’s how it actually gets determined.
The condo questionnaire
Lenders send the HOA a form asking about owner-occupancy, litigation, reserves, insurance and delinquencies. Most answers live here.
HOA budget and reserves
The budget shows whether enough is set aside for repairs — a common make-or-break under the 2026 rules.
The master insurance
Confirms the building carries the required coverage, with an acceptable deductible.
A lender pre-screen
The fastest route: send us the project and we'll run it against every condo program and tell you where it stands — before you make an offer.
August 3rd, 2026 Condo guideline changes
Fannie Mae and Freddie Mac updated their condo rules in August 2026 — retiring the old “Limited Review” shortcut but also loosening a few rules, so some buildings moved between the two buckets. See what the 2026 condo rule change means →
Found out your condo is non-warrantable?
Non-warrantable condos are financed every day through portfolio and Non-QM programs — for primary homes, second homes and investments. See exactly how it works and which project problems we can solve.
Warrantability is defined by Fannie Mae and Freddie Mac condo-project guidelines (Selling Guide Chapter B4-2) and, for government loans, FHA and VA project-approval standards. The financing paths described reflect the conventional, portfolio and Non-QM programs Andes Mortgage brokers through its wholesale lenders. Specific project requirements are program-dependent and confirmed for your building at the time of quote. This page is educational and is not a commitment to lend.
Last verified: August 2026 · Guidelines subject to change without notice
By: Marcos Zambrano, NMLS #988935 | President
Andes Mortgage LLC | NMLS #2187991
Warrantable vs. non-warrantable FAQ
What does a non-warrantable condo mean?
It means the condo project doesn’t meet Fannie Mae or Freddie Mac’s guidelines, so the agencies won’t back a loan on it. The unit is financed with a portfolio or Non-QM loan instead. It’s a statement about the building, not the buyer or the unit.
What makes a condo non-warrantable?
Common triggers include high investor concentration, one owner holding many units, too much commercial space, low presale on new construction, condotel or short-term-rental operations, HOA litigation, and inadequate reserves or insurance. Any one of these can be enough.
Is a non-warrantable condo a bad investment?
Not necessarily. Many non-warrantable buildings are perfectly good properties that simply have a lot of rentals, some commercial space, or are brand new. What matters is the specific reason — a paperwork issue is very different from an active structural problem.
How can I tell if a condo is non-warrantable before I make an offer?
You typically need the HOA questionnaire, budget, insurance and litigation status — it’s not visible in the listing. The fastest way is a free lender pre-screen: send us the project and we’ll tell you where it stands before you’re under contract.
Can I get a mortgage for a non-warrantable condo?
Yes, in most cases — through portfolio and Non-QM programs, for primary residences, second homes and investment properties. The main exceptions are buildings with active structural, safety or critical-repair problems. See our non-warrantable condo loan options.
Do non-warrantable condos have lower rates?
Generally yes. Warrantable projects qualify for conventional financing at standard rates. Non-warrantable loans carry somewhat higher rates because the lender takes on more project risk — though the gap is often smaller than buyers expect.
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.