A condominium is classified as non-warrantable when it does not meet Fannie Mae or Freddie Mac conventional agency guidelines. Common triggers include: a single entity or investor owning more than 10% to 20% of total units, commercial or non-residential space exceeding 35% of total square footage, pending litigation against the HOA or builder, insufficient budget allocations to capital reserves (under 10%), or heavy short-term rental/condotel usage.

Yes. While major secondary-market agencies will not buy these loans, specialty portfolio lenders and private banking programs actively underwrite non-warrantable condos. Borrowers can access fixed-rate, adjustable-rate, and interest-only structures with competitive rates tailored to the project's specific risk profile.

Down payment thresholds typically start at 10% to 15% for primary residences with strong borrower profiles. Second homes and investment purchases generally require 20% to 25% down. Minimum credit scores usually range between 660 and 680, though 720+ unlocks the most favorable pricing tiers.

Pending litigation does not guarantee an automatic denial. Our specialized underwriters review the formal complaint, legal briefs, and association counsel response. If the litigation concerns minor construction defects, slip-and-fall claims fully covered by insurance, or disputes with limited financial exposure to reserves, the project can still be cleared for lending.

Approval requires a completed condo questionnaire (full or limited scope), the current operating budget reflecting reserve allocations, the latest balance sheet, the master insurance declaration page with fidelity/crime coverage, and HOA meeting minutes covering the previous 12 months.

Because the HOA review and questionnaire analysis occur in parallel with borrower credit underwriting, most non-warrantable condo transactions close smoothly in 21 to 30 business days once all association documentation is received.