Non-warrantable Condos

Non Warrantable Condo Loans

Is the condo you are interested in not approved by FHA? That does not have to be a deal breaker. Silver Leaf Mortgage has several programs for your situation! We offer up to 90% loan-to-value (LTV) with no mortgage insurance (MI). Whether you are looking at a home for yourself, a second home or an investment property, Silver Leaf Mortgage has a loan for your non-warrantable condo! We are happy to help if the project is new construction, high rise, or low rise. If the investor concentration is 100% or anything less, and you have no reserves, Silver Leaf Mortgage is your source for a great loan to meet your needs. Call Silver Leaf Mortgage, a Denver-based company, lending in all of Colorado.

  • Up to 90% LTV
  • Credit scores as low as 500
  • Loans up to $3 million
  • Up to 100% investor concentration
  • New construction: minimum 25% sold and closed
  • Up to 50% debt-to-income (DTI)
  • High and low rise condos acceptable
  • Can qualify on all AOMS programs
  • Owner occupied, second homes, and investment properties
  • No MI required
  • No reserves required

What are warrantable and non-warrantable condo loans?

Before you fall in love with a condo, be sure to ask the question, “Is it warrantable or non-warrantable?” Lenders sell many of the loans they generate to Fannie Mae and Freddie Mac, who must approve of the condition of the property and things like how many of the units are owner-occupied, and how many are rentals. If the condo complex does not meet their standards for whatever reason, the condo will be considered non-warrantable.

What if you love that non-warrantable condo?

Silver Leaf Mortgage has several options for non-warrantable condo financing. If you look elsewhere, you will have few options.

Why are some condos warrantable and others non-warrantable?

When it comes to a condo, the lender is interested in the condition of the entire condo complex, not just the individual unit you are interested in. The lender wants to be sure that the complex is well maintained, and is not a “condotel” where there may be more transient residents. They are also concerned about the number of renters in the complex because renters often do not care for the property as well as an owner might. If the number of renters exceeds 50%, the condo will be non-warrantable. In addition, the lender checks to see if the number of folks who are behind on paying their HOA dues is at an acceptable level, whether or not the HOA is involved in a lawsuit, and if the amount of commercial space in the building is 25% or less. You can read more about what makes a condo non-warrantable on Fannie Mae’s website here.

Why does being a warrantable condo matter?

Lenders often do not keep and service their loans, and sell them on the secondary market to such entities as Fannie Mae and Freddie Mac. For this reason, the lender is careful to be sure that the loan will be purchased after the closing. If the condo complex is non-warrantable, Fannie and Freddie will not buy the mortgage. There are lenders who will provide a mortgage for a non-warrantable condo at a slightly higher interest rate due to the higher risk. Contact Silver Leaf Mortgage to see what is available for your particular circumstances.

How can I find out if a condo is warrantable or non-warrantable?

Check with your real estate agent, the condo management company, or contact Silver Leaf Mortgage. We will be happy to track down the necessary information for you so you will know if your condo is warrantable or non-warrantable. There is a HUD (Department of Housing and Urban Development) website that provides a list of  warrantable condos that will be applicable for an FHA loan. This resource is also available for VA loans here. Keep in mind that the websites are not always up-to-date, so contact Silver Leaf Mortgage to be sure.

If my condo is non-warrantable, what should I do?

If you have fallen in love with a non-warrantable condo, you still have options for getting a mortgage loan. Contact Silver Leaf Mortgage for help in discovering and navigating those options.

Be aware that…

Warrantable and non-warrantable status can change periodically. Even if your condo is non-warrantable now, it may be warrantable in the future. Sometimes it is just a matter of the management company processing the paper paperwork. At Silver Leaf Mortgage, we have several options for financing both warrantable and non-warrantable condos. Contact us today to speak with a Senior Loan Officer who will answer all your questions and help you get the details you need on a mortgage loan for your condo.

Contact us TODAY for more information! 720-458-4036