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Comprehensive Financing Options for Non-Warrantable Condos

Investing in a condominium project might seem like an exciting and profitable venture for any real estate investor. It may also sound like a good deal for an aspiring homeowner seeking to buy their first house.

After all, condos are more affordable than single-family houses, and they offer flexible living with top-quality amenities.

However, getting a loan for a condo is not easy compared to getting financing for other properties. First, a condo is a multi-unit development, meaning your finances will intertwine with the finances of other unit owners.

Moreover, the condominium may be deemed non-warrantable, making it nearly impossible to secure financing.

What is a Non-Warrantable Condo?

When shopping for a home to buy, you will encounter terms such as warrantable and non-warrantable condos. A warrantable condo meets Freddie Mac and Fanny Mae guidelines, while a non-warrantable condo does not.

The two federally-backed mortgage companies buy government-insured loans from lenders in case of foreclosure or a borrower defaults.

No single owner should own more than 10% of the units for a condo to be warrantable, while 50% of the homes or greater should be resident-owned.

The association managing the condominium must not be in a lawsuit, and it should have enough financial reserves.

If the condos do not meet the above criteria or more than 15% of the unit owners are delinquent on their association dues, the relevant government entities will deem the property non-warrantable.

Financing for Non-Warrantable Condos

As you already know, a non-warrantable condo is a property not backed by Freddie Mac and Fannie Mae, making it difficult to finance due to the complex risks involved.

Lenders usually evaluate if a property is warrantable or not before deciding whether or not to fund the project.

Lenders are usually unwilling to finance non-warrantable condos since they consider them to be high-risk ventures.

Why Choose Us for a Non-Warrantable Condo Loan?

If you plan to buy a non-warrantable condo, you may have to fund the project entirely from your pockets since most lenders view condos as risky ventures. Alternatively, you may have to take a portfolio loan to purchase or refinance the home.

Fortunately, this does not have to be the case when dealing with a credible mortgage expert like MakeFloridaYourHome.

Here are the top reasons why you should choose us to finance your non-warrantable condo:

Different Property Occupancies

Different lending institutions have varying qualification requirements when buying a non-warrantable condominium.

Some lenders may only approve a loan if the condo is your primary home, while others are more lenient with the mortgage terms.

Whether you are buying a non-warrantable condo as your primary residence or vacation loan, LendSure has various financing options to fit your mortgage needs.

High Loan Amounts

Since financing a non-warrantable condo is risky, many lenders will remain non-committal and will probably offer lower loan amounts in case of approval. You may have to pay the balance from your pockets to complete the purchase.

LendSure offers high loan amounts of up to $2,000,000, depending on the property’s value and other qualification factors.

High Commercial Space Approval

As you probably know, commercial space in a condominium project cannot exceed 35% of the total area to qualify for financing. This qualification requirement can be somewhat restrictive. 

You do not have to worry when dealing with a credible lender like us. We permit up to 50% commercial space during pre-approval.

Cash-Out Refinancing

It’s hard to get cash-out refinance on non-warrantable condos. However, this is not the case when working with us.

We allow borrowers to cash in on the equity they have accumulated in the non-warrantable condominium projects. Purchase, rate & term refinance options are also available with our comprehensive financing options.

New Construction Building Permitted

Most lenders are hesitant to finance incomplete or newly constructed condominiums. After all, new constructions do not meet Freddie Mac and Fanny Mae’s guidelines for mortgages.

The good news is that we apply common sense when reviewing loan applications. You can rest assured that you can still qualify for a condo loan even if the building is new.

Bank Statement Program

Instead of requesting documented assets, financial reserves, and employment information during pre-approval, we use an industry-leading bank statement program to determine your eligibility for a non-warrantable condo loan.

We only need your 12-month or 24-month bank statement to help calculate your income and determine your pre-qualification amount.

Fast Closing Times

You do not have to wait for long to receive feedback about your loan application. Our pre-approval times are fast and usually do not exceed 24 hours.

Talk to Us for Non-Warrantable Condo Loans

Securing a non-warrantable condo loan can be a complex process. Many lenders are unwilling to finance condominium projects, given the risks involved.

If you get condo financing, you may have to pay higher interest rates to mitigate the financial risks on the lender.

Talking to a credible lender like MakeFloridaYourHome can ensure you do not have to go through all the pain. We offer comprehensive financing options for non-warrantable condos at highly competitive rates with minimal conditions.

Call us today to learn more about our loan services.

Find The Right Mortgage

For more than 20 years, Phil have been helping customers achieve their home purchase and refinance goals by providing them with invaluable resources and support.

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Phil Ganz

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