Non-Warrantable Condo & Condotel Financing
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Not all condominium properties meet the guidelines required for traditional mortgage financing.
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When a condo project fails to meet those standards, it is typically classified as a non-warrantable condo.
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This can occur for several reasons, including high investor ownership, ongoing litigation within the HOA, commercial space within the building, or restrictions related to short-term rentals.
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For buyers and real estate investors interested in these types of properties, specialized financing programs may provide solutions when conventional loans are not available.
What Is a Non-Warrantable Condo
A non-warrantable condominium is a property that does not meet the requirements established by traditional lending guidelines used by conventional mortgage programs.
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Some common reasons a condo may be classified as non-warrantable include:
• high percentage of investor ownership
• ongoing litigation within the HOA
• short-term rental or Airbnb usage within the building
• condo hotel or resort style projects
• excessive commercial space within the development
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Because these projects do not meet conventional standards, specialized financing programs are often required.
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Properties That May Require Non-Warrantable Condo Financing
Non-warrantable condo loans are commonly used for properties such as:
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• vacation resort condos
• condo hotel (condotel) properties
• short-term rental condos
• buildings with high investor ownership
• HOA projects with litigation issues
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These properties are often located in high-demand markets and vacation destinations.
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Popular Markets for Non-Warrantable Condo Financing
These types of properties are frequently found in markets such as:
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Florida vacation markets
Las Vegas resort properties
Hawaii beachfront condos
California resort communities and those failing SB326
Arizona vacation destinations
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Buyers and investors interested in these properties often require flexible loan options designed specifically for these types of projects.
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Start With a Structure Review
If you are exploring financing options for a non-warrantable condominium property, I can walk you through potential loan programs and qualification scenarios.
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Apply here to get started:
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Once submitted, we’ll outline the cleanest strategy for your scenario.​
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These features make DSCR loans one of the most popular financing solutions for real estate investors.
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If you are exploring financing options for an investment property, I can walk you through DSCR loan options and investor scenarios.
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Start here:
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CLICK HERE
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DSCR Loans Across Major Investment Markets
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Real estate investors use DSCR loans throughout many of the most active investment markets in the United States including:
Texas
Florida
Arizona
Nevada
Tennessee
Colorado
Washington
Oregon
Idaho
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These markets continue attracting investors due to strong population growth and increasing demand for rental housing.
Get Started
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If you are exploring financing options for an investment property, I can walk you through DSCR loan options and investor scenarios.
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Also for our full suite of NONQM and Self Employed Loan Programs for buyers and investors, CLICK HERE
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DSCR Loan Markets We Serve
Real estate investors frequently use DSCR loans across many of the fastest growing rental property markets in the United States.
Explore DSCR financing options in the following markets:
TexasFloridaArizonaNevadaTennesseeColoradoWashingtonOregonIdaho
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