Condo Loans, Including Non-Warrantable Condos
Condo loans take an extra step: the lender reviews the condo complex and its HOA as well as you. That's where many condo deals stall. Financing may be available for eligible warrantable and non-warrantable condominiums. Supreme Lending’s condo team reviews project eligibility, and FHA single-unit approval may be available for eligible units in projects without full FHA approval. If another lender said your condo "doesn't qualify," talk to me.
Warrantable vs non-warrantable condos
A warrantable condo meets Fannie Mae and Freddie Mac standards, so it can be financed with a standard conventional loan. A non-warrantable condo doesn't meet one or more of those standards. Common reasons include:
- A high share of units owned by investors
- One person or company owning too many units
- The HOA involved in significant litigation
- Low HOA reserves or many owners behind on dues
- Too much commercial space in the building
- Hotel-style operations (condotels)
Non-warrantable doesn't mean bad. It means you need a lender with programs built for it.
How we finance condos
- Condo project review. Supreme Lending's condo team reviews project eligibility up front, so problems surface early instead of the week before closing.
- Non-warrantable and condotel options on select programs.
- FHA single-unit approvals, which may be available for eligible units in projects without full FHA approval.
- Conventional, FHA, VA (VA-approved projects), and Non-QM condo options.
What you'll need
| Item | Details |
|---|---|
| Down payment | Varies by program and property; non-warrantable condos typically require more down |
| HOA documents | Questionnaire, budget, insurance, and other documents (we help request them) |
| Occupancy | Primary, second home, or investment |
| Credit | Varies by program |
Who we help
- First-time buyers choosing a condo as an affordable start
- Parents buying a condo near Texas A&M for a student
- Investors buying condos as rentals, including with DSCR loans →
- Buyers in condo complexes other lenders have declined →
Before you make an offer
Send me the condo's address before you write an offer, and I'll check what financing options may be available.
Frequently asked questions
How do I know if my condo is warrantable?
I'll check whether the project is already approved and review the HOA documents. You'll know early in the process.
Can I get an FHA loan on a condo that isn't FHA-approved?
Possibly. An FHA single-unit approval may allow financing one unit in a project that isn't on the approved list.
Are condo loan rates higher?
Warrantable condo loans are usually priced close to other conventional loans. Non-warrantable loans often have somewhat higher rates and down payments because of the added risk.
Why do condo loans take longer?
The lender has to review the complex and HOA, not just the buyer. Supreme Lending's condo team helps keep that review moving.
Can I buy a condotel?
Condotels are eligible on select programs, with their own requirements.
Related
Programs, terms, and availability are subject to change without notice and may not be available in all states. All loans are subject to credit and property approval. This is not a commitment to lend. Ask me which options fit your situation.