What makes a condo 'non-warrantable'?

Fannie Mae and Freddie Mac have specific project-level requirements: less than 51% owner-occupancy, more than 15% HOA delinquencies, pending litigation, single entity owning more than 20% of units, or more than 35% commercial space. A condo that fails any of these is 'non-warrantable' for agency lending.

Why does warrantability matter?

If the condo is non-warrantable, Fannie and Freddie won't buy the loan — meaning agency rates (conventional, FHA, VA) are off the table. You need either a non-QM non-warrantable program or a portfolio jumbo that's comfortable with the project profile. These loans carry higher rates (typically 1–1.5% above conventional) but enable purchases that would otherwise be impossible.

Non-QM & Alternative Doc

Alt-Doc — Property Type

Non-Warrantable Condo

Name: Francisco Williams — Mortgage Broker
Address: 552 E Badillo St, Covina, CA, 91723, US
Telephone: (213) 880-8107
Price range: $$

Financing for condos that don't meet Fannie/Freddie warrantability (high investor concentration, HOA litigation, commercial share).

Available throughout Southern California through Francisco Williams, CCIM, NMLS #1858674.

Apply for this program (213) 880-8107

680

Min FICO

85%

Max LTV

Ideal borrower

Buyers of condos declined by agency lenders due to project profile.

Program highlights

Up to 85% LTV
Project-level litigation, low owner-occupancy, and high investor concentration OK
Condotel financing available

Typical uses

Downtown/urban condos that fail Fannie review

Frequently asked questions

What makes a condo 'non-warrantable'?: Fannie Mae and Freddie Mac have specific project-level requirements: less than 51% owner-occupancy, more than 15% HOA delinquencies, pending litigation, single entity owning more than 20% of units, or more than 35% commercial space. A condo that fails any of these is 'non-warrantable' for agency lending.
Why does warrantability matter?: If the condo is non-warrantable, Fannie and Freddie won't buy the loan — meaning agency rates (conventional, FHA, VA) are off the table. You need either a non-QM non-warrantable program or a portfolio jumbo that's comfortable with the project profile. These loans carry higher rates (typically 1–1.5% above conventional) but enable purchases that would otherwise be impossible.

Program details shown are representative guidelines and subject to individual lender overlays and CFPB / agency requirements. Rates shown are illustrative and subject to change without notice. Actual rate, APR, and terms will depend on creditworthiness, loan-to-value, property type, occupancy, loan amount, loan program, and other factors. Not all applicants will qualify.