Non-Warrantable Condo Loans for Investors
A condo is "non-warrantable" when its project fails one or more agency tests — active litigation, a single owner controlling more than 10% of units, more than 35% commercial space, low HOA reserves, or the project being a hotel/condotel. Specialty investor lenders write loans against these projects every day with adjusted LTV and pricing.
Highlights
- •Litigation projects accepted (case-by-case)
- •Single-entity / sponsor concentration over 10% allowed
- •Commercial space up to 50–60% in some programs
- •Short-term rental projects financeable
- •HOA budget review still required but standards are looser
Who it's for
Investors targeting urban core condos, mixed-use buildings, resort-area units, and recently converted projects that fall outside agency guidelines.
Active programs that fit
Non-QM Investor Loan
confirmed 5/9/2026Financing solutions for condo projects that do not meet standard Fannie Mae or Freddie Mac guidelines, including those with litigation, high commercial space, or investor concentration.
Jumbo Investor Loan
confirmed 5/15/2026Jumbo loan program for primary, second, and investment properties with loan amounts up to $3 million, allowing non-warrantable condos.
Bank Statement Loan
confirmed 5/10/2026A non-QM bank statement program for service and tip industry workers that uses 12-24 months of bank deposits to calculate income without requiring tax returns.
Frequently asked questions
What makes a condo non-warrantable?
Common triggers: pending litigation involving the HOA, more than 10% of units owned by a single entity, more than 35% commercial use, less than 10% of HOA dues going to reserves, daily-stay rental programs, ineligible insurance coverage, or excessive delinquent HOA dues.
How is a non-warrantable condo loan priced?
Expect 0.25–1.0% above a comparable warrantable condo DSCR rate. Pricing depends on the specific warrantability issue and how many issues stack.
What LTV can I get on a non-warrantable condo?
Most programs cap at 75% LTV on purchase, 70% on rate-term refi, 65–70% on cash-out. A few aggressive lenders go to 80% with 740+ FICO and strong DSCR.
Will my lender review the HOA?
Yes. Even non-warrantable programs require a condo questionnaire, HOA budget, master insurance, and litigation disclosure. The bar is just lower than agency.
Got a non-warrantable condo scenario?
Tell us the deal - we'll match you with the right lender and come back with current pricing.
Common questions on this topic
Related programs
Condotel Financing for Investment Properties
DSCR and non-QM financing for condotel units. Hotel-condos that fail conventional warrantability still finance through specialty investor lenders.
Short-Term Rental DSCR Loans (Airbnb / VRBO)
DSCR loans that qualify on short-term rental income. Airbnb, VRBO, and direct-booking properties. Use AirDNA projections or 12-month T12 STR statement.