If you have found a condo in New Jersey and a lender says the building is non-warrantable, the deal is not necessarily over. Project problems such as litigation, critical repairs, thin reserves or single-entity ownership rule out agency financing, but some non-QM investors review those issues case by case. You may qualify, subject to credit approval, once a lender matches the project with an investor willing to lend there.
Call to talk with a licensed loan officer. Programs vary by borrower, property and investor.
New Jersey condo rules: New Jersey condominiums are governed by the Condominium Act and the Planned Real Estate Development Full Disclosure Act, enforced in part by the Department of Community Affairs' Bureau of Homeowner Protection. The state's role over owner-controlled associations is limited mainly to dispute-resolution procedures, open meetings, and owners' access to association accounting records, so buyers should review the association's own documents and finances directly. Source: New Jersey Department of Community Affairs, Division of Codes and Standards, Bureau of Homeowner Protection.
Where the numbers point in New Jersey
Counties with the most owner-occupied homes in buildings with 10+ units:
| County | Owner-occupied homes in buildings with 10+ units |
|---|---|
| Hudson County | 21,413 |
| Bergen County | 17,778 |
| Essex County | 6,507 |
| Monmouth County | 6,452 |
| Morris County | 5,687 |
| Middlesex County | 5,537 |
| Passaic County | 4,818 |
| Atlantic County | 3,319 |
| Somerset County | 3,236 |
| Mercer County | 3,050 |
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Local pages in New Jersey
- Non-QM lenders in Trenton
- Non-QM lenders in Newark
- Non-QM lenders in Jersey City
- Non-QM lenders in Atlantic City
- Non-QM lenders in Paterson
- Non-QM lenders in Elizabeth
- Non-QM lenders in Vineland
- Non-QM lenders in Clifton
- Non-QM lenders in Camden
- Non-QM lenders in Passaic
- Non-QM lenders in Union City
- Non-QM lenders in Bayonne
- Non-QM lenders in East Orange
- Non-QM lenders in New Brunswick
- Non-QM lenders in West New York
- Non-QM lenders in Hoboken
- Non-QM lenders in Perth Amboy
- Non-QM lenders in Plainfield
- Non-QM lenders in Hackensack
- Non-QM lenders in Sayreville
- Non-QM lenders in Linden
- Non-QM lenders in Kearny
- Non-QM lenders in Fort Lee
- Non-QM lenders in Bridgeton
- Non-QM lenders in Franklin
- Non-QM lenders in Fair Lawn
- Non-QM lenders in Garfield
- Non-QM lenders in Princeton
- Non-QM lenders in Long Branch
- Non-QM lenders in Rahway
Common questions
Are condotels non-warrantable?
Projects that operate like hotels, with daily rentals, a front desk, housekeeping or rental pooling, are generally ineligible for Fannie Mae and Freddie Mac financing. Some non-QM investors do lend in condo-hotel projects, often with their own requirements for the unit's size, kitchen and rental arrangement. Ask a lender who handles condotels to review the project early.
Are non-warrantable condo loans harder to get?
Your credit and income are reviewed much like on any other loan, but fewer lenders offer these programs, and each investor accepts different project issues. Expect higher pricing than a conventional condo loan and, in many cases, a larger down payment. With the right match between building and investor, you may qualify, subject to credit approval.
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.
Other non-QM options in New Jersey
Bank statement loansNon-QM lendersSelf-employed1099 loansP&L loansAsset depletionNo-doc / stated incomeNew self-employedITIN loansForeign nationalBank statement HELOCInterest-only
Related guides
- What Is a Non-Warrantable Condo, and How Can You Find Out Before You Offer?
- What Is a Non-QM Loan?
- How to Compare Non-QM Loan Offers: Loan Estimates, Features and Fit
Non-Warrantable Condo Loans overview · New Jersey non-QM overview
- Census ACS 2020-2024, table B25032