Non-warrantable condo loans for South Florida buildings
When a condo building does not meet Fannie Mae or Freddie Mac guidelines, most conventional lenders will not finance it. We compare lenders that finance non-warrantable condos.
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Overview
A warrantable condo is in a project that meets Fannie Mae or Freddie Mac guidelines, so lenders can sell the loan to those agencies. A non-warrantable condo is in a project that does not. Common reasons include a high share of units owned by investors, one person or entity owning more units than allowed, a large amount of commercial space, pending litigation, low reserves, and short-term rental policies.
Non-warrantable buildings are common in Miami and across South Florida, especially in towers popular with investors and seasonal owners. Projects with critical repairs, deferred maintenance or large special assessments, including work identified in the structural inspections and reserve studies Florida now requires for many condo buildings, may also be ineligible for agency financing. Portfolio and non-QM lenders offer programs for many of these buildings.
Non-warrantable condo loans can finance a primary residence, a second home or an investment property, using full documentation or alternative documentation such as bank statements, depending on the lender. Expect pricing and down payment requirements that reflect the building's risk. QMS gathers the condo questionnaire and budget, identifies why the project is non-warrantable, and matches it with lenders that accept that issue. All loans are subject to credit approval and lender guidelines.
Is it a good fit?
- Are buying or refinancing a condo a lender called non-warrantable
- Are buying in a building with many investor-owned or short-term rental units
- Are looking at a building with commercial space or pending litigation
- Own a unit in a building facing repairs or special assessments
- Want a primary home, second home or investment condo in South Florida
- Are self-employed and want to use bank statements, with select lenders
What you'll need
- Condo questionnaire completed by the association
- Association budget and reserve information
- Details of any litigation or special assessments, if applicable
- Income documentation, or alternative documentation where allowed
- Bank statements showing down payment, closing costs and reserves
- Government-issued photo ID
- Purchase contract, or mortgage statement for a refinance
How it works
How it works with QMS
Find the issue
We review the questionnaire and budget to pinpoint why the building is non-warrantable.
Match the lender
We compare lenders that accept that specific issue and your documentation type.
Underwrite and close
We clear project and borrower conditions and coordinate closing with the association.
FAQ
Non-Warrantable Condo loan FAQs
Don't see yours? Call us or send a message. We answer the same business day.
305-425-1990How do I know if a condo is non-warrantable?
The lender reviews the association's condo questionnaire, budget and other project documents. If the building fails a Fannie Mae or Freddie Mac requirement, such as investor concentration, commercial space or reserves, it is considered non-warrantable. Your real estate agent or the association may already know. We can request the documents early so there are no surprises later in the process.
Does non-warrantable mean something is wrong with the building?
Not necessarily. Many desirable buildings in Miami are non-warrantable because of investor ownership, rental policies or commercial space, not because of poor condition. Other issues, such as litigation or major repairs, deserve a closer look before you buy. Financing is a separate question from value, and we focus on finding a lender that will finance the unit you choose.
Can a non-warrantable condo become warrantable later?
Yes, it can. A building may become warrantable when investor concentration drops, litigation is resolved, reserves are funded or required repairs are completed. When that happens, owners may be able to refinance into conventional financing. We can check in on the building's status with you over time and let you know when a refinance may make sense.
Can I use a DSCR loan on a non-warrantable condo?
Many DSCR lenders accept non-warrantable condos for investment properties, subject to their own project review. If the building allows rentals and the rent supports the payment, a DSCR loan can qualify on the property's income instead of yours. Short-term rental buildings may have additional rules. We compare DSCR and documented-income options for your unit.
Get started
Know your numbers before you make an offer.
Tell us about your scenario and we'll price it across our lenders the same business day.