Nonwarrantable Condos

This program allows borrowers who want to purchase or refinance a condo that is not approved by Fannie Mae, Freddie Mac or FHA.

Most of your common lending types, including FHA, VA, USDA, and conventional loans will not work on non-warrantable condos. Each of these programs has strict rules regarding the condo association and the building itself. If the units do not meet the requirements, they are non-warrantable.

Some of the most common requirements on condo include:

  • One person cannot own more than 10 percent of the units in the building
  • Less than half of the units can be rented units
  • No more than 20 percent of the building can be used for commercial purposes
  • Adequate insurance must be present
  • There cannot be any litigation against the association
  • No more than 15% of the homeowners can be late on their association dues

If the condo association does not meet each of these requirements, the development is not warrantable which means not eligible for standard financing options.

How can I find out if a condo is warrantable?

Your realtor and the condo’s management office should have the resources to determine if the condo you’re interested in is warrantable or non-warrantable.

We offer mortgages for nonwarrantable condos, please contact us if interested in this type of financing.

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DISCLAIMER: This is not an offer to make a loan or to make a loan on any particular terms. All loan applicants must qualify under underwriting requirements and satisfy all contingencies of loan approval. Rates and terms subject to change without notice. Norcom Mortgage NMLS ID # 71655 (