Non-Warrantable Condo Loans in Florida

Will a non-warrantable condo be hard to sell later?

It can be. Future buyers face the same financing limits you did, which shrinks the pool of buyers who can use a conventional loan. If the project later fixes its issue, such as resolving a lawsuit or rebuilding reserves, it may regain eligibility. Factor resale into your decision, especially if you expect to move again before long.

How do I find out if a condo is warrantable?

Your lender reviews the project, usually by sending a questionnaire to the homeowners association and collecting its budget, insurance and other documents. The answers show whether the project meets agency standards. You can get a head start by asking the listing agent or management company how past buyers financed their units and whether any lawsuits, special assessments or major repairs are pending.

What does non-warrantable condo mean?

It means the condominium project does not meet the eligibility standards Fannie Mae and Freddie Mac set for condo projects, so lenders cannot sell loans in that building to them. The label applies to the whole project, not to your unit or your credit. A non-warrantable condo can still be financed, but it takes a lender with access to non-QM or portfolio programs.