What Is a Warrantable Condo?

Short answer

A warrantable condo is a unit in a building that meets Fannie Mae or Freddie Mac project standards, so it can get a conventional loan. Under Fannie Mae's rules, a project is ineligible if commercial space exceeds 35%, one entity owns more than 20% of units in a 21+ unit building, it runs like a hotel, or it has unfunded critical repairs (Fannie Mae Selling Guide, checked October 2026).

Definition

Warrantable means the condo project qualifies for sale to Fannie Mae or Freddie Mac. Non-warrantable projects need portfolio or non-QM financing.

Worked example

Example only: a 300-unit building where one investor owns 75 units. 75 / 300 = 25%, above Fannie Mae's 20% single-entity cap, so the building is non-warrantable. If the same building has $15,000 per unit in unfunded repairs due within 12 months, it also fails the $10,000-per-unit test.

What makes a condo non-warrantable

Fannie Mae's ineligible project list includes:

• Commercial or nonresidential space over 35%
• One owner holding more than 20% of units (21+ units) or more than 2 units (5 to 20 units)
• Hotel-style operation: mandatory rental pools, daily or short-term rental management
• Unfunded critical repairs over $10,000 per unit due within 12 months, failed safety inspections, or an inspection within 3 years with unaddressed critical repairs
• Pending litigation against the association, with narrow exceptions
• Special assessments tied to critical repairs that aren't fixed

Financing a non-warrantable condo

You can still buy. Non-warrantable condo loans and condotel loans use lenders that keep loans in portfolio, usually with a larger down payment. Ask your agent for the condo questionnaire and budget early. See our Miami condo down payment guide.

In South Florida

Florida requires milestone structural inspections for condo buildings three or more habitable stories tall by December 31 of the year they turn 30, and every 10 years after (Florida Statutes 553.899; local agencies may require it at 25 years near salt water). Inspection findings, special assessments and reserves now decide many Miami condo approvals.