Home Loans
Condo Loans
Buying a condo involves an extra layer of review that does not exist with a single-family home. Lenders do not just look at you — they look at the building, the HOA, and the financial health of the entire community. Knowing how that process works before you start shopping makes a significant difference in what you can buy and how smoothly you can close.
HOA Matters
The Building Gets Reviewed Too
Warrantable
and Non-Warrantable
All Loan
Types Available
How Condo Financing Works
Financing a condo is more complex than buying a single-family home because lenders evaluate the entire condominium project, not just the unit you are purchasing. Fannie Mae and FHA each have their own approval standards for condo communities, and whether a project meets those standards determines which loan types are available to you and at what terms.
A condo that meets agency guidelines is called warrantable. One that does not is called non-warrantable. Non-warrantable condos can still be financed but typically require portfolio or non-QM loan products at slightly different terms. Todd and Aaron know how to navigate both scenarios and will identify the best financing path before you make an offer on a specific unit.
It is not just your unit
Lenders evaluate the entire condo project, not just the unit you are buying. The project's approval status determines which loan types are available to you.
Know before you offer
Todd and Aaron identify the right financing path before you make an offer on a specific unit, so you are never caught off guard at the contract stage.
Ready to Get Started?
Let's Check the Building Before You Fall in Love with the Unit
No pressure, no runaround. Todd and Aaron will review the project approval status and tell you what financing is available before you go under contract.
Why Work with a Lender Who Knows Condos
Project Review Before You Offer
Todd and Aaron check project approval status before you go under contract so you are not surprised by financing issues after you are already emotionally invested.
Solutions for Non-Warrantable Buildings
If a building does not meet agency guidelines, that does not mean you cannot buy. Portfolio and non-QM options exist for non-warrantable condos and Todd and Aaron know how to access them.
All Major Loan Types
Conventional, FHA, VA, and USDA all work on approved condo projects. Your loan type choice is not limited just because you are buying a condo.
No Surprises at Closing
Condo deals that fall apart at the last minute almost always do so because of project review issues that were not caught early. We catch them first.
What Makes a Condo Warrantable?
A warrantable condo is one that meets Fannie Mae or Freddie Mac guidelines and can be financed with a conventional loan. The building itself has to pass a review that looks at owner-occupancy rates, HOA financial health, delinquency rates, and a number of other factors that lenders use to assess risk at the project level.
Common warrantability issues that can complicate financing include:
- Too many units owned by a single investor or entity
- Too high a percentage of rentals in the building
- HOA delinquencies above a certain threshold
- Pending or ongoing litigation against the HOA
- Inadequate HOA reserve funds
- Commercial space making up too large a percentage of the building
None of these automatically kill the deal. But they change which loan products are available and at what terms. Knowing this before you make an offer gives you a much cleaner path forward.
Good to Know
FHA has its own condo approval list which is separate from Fannie Mae. A project approved for conventional financing may or may not be FHA approved. If you plan to use an FHA loan, the building needs to be on the FHA approved condo list or go through a spot approval process.
Todd and Aaron will check both lists and all relevant approval statuses before you move forward.
Non-Warrantable
Still Possible.
Just Different.
Non-warrantable condos can still be financed through portfolio lenders and non-QM programs. The terms may be slightly different but the deal can still close. Todd and Aaron have access to both paths.
How the Process Works
Check Project Approval Status Early
Before you fall in love with a specific unit, Todd and Aaron check whether the building is warrantable and which loan types are available. This takes a day or two and saves weeks of heartache if there is an issue.
Get Pre-Approved for the Right Loan Type
Once we know what the building qualifies for, we match your financial profile to the best available loan type and issue a pre-approval that reflects both you and the property.
Go Under Contract
With project review and pre-approval in hand you can make an offer with confidence. No unknown variables waiting to surface after you are already committed.
Condo Questionnaire and HOA Review
After going under contract, lenders require a condo questionnaire completed by the HOA. We manage this process and follow up with the HOA directly so it does not slow down your timeline.
Appraisal, Underwriting, and Close
Condo appraisals must use approved comparable sales within the same building or similar projects. We work with appraisers who understand condo valuations and keep underwriting moving on schedule.
Typical Timeline
30-45
Days to Close
Condo closings run on a similar timeline to single-family purchases when the project approval is confirmed early. The HOA questionnaire is the most common source of delay and we stay on top of it from the start.
Worth Knowing
VA Has Its Own Rules.
VA loans on condos require the project to be on the VA-approved condo list, which is separate from both Fannie Mae and FHA approvals. If you are a veteran buying a condo, project eligibility is the first thing we check.
Common Questions
What is the difference between a warrantable and non-warrantable condo?
A warrantable condo meets Fannie Mae or Freddie Mac guidelines and can be financed with a standard conventional loan. A non-warrantable condo does not meet those guidelines due to factors like high investor concentration, HOA issues, or litigation. Non-warrantable condos can still be purchased but require portfolio or non-QM financing, which typically carries slightly different rates and terms.
Can I use a VA loan to buy a condo?
Yes, but the condo project must be on the VA-approved condo list. This is a separate approval from Fannie Mae and FHA, and many buildings that are approved for conventional financing are not on the VA list. Todd and Aaron check VA approval status first for any veteran buying a condo so there are no surprises after you are under contract.
What if the HOA has pending litigation?
Pending litigation against an HOA is one of the most common reasons a condo project fails to qualify for conventional financing. Minor litigation may be acceptable depending on the nature and amount involved. Significant litigation typically makes the project non-warrantable and requires portfolio or non-QM financing. Todd and Aaron will review the specifics and identify your options.
How does the condo questionnaire work?
After you go under contract, your lender sends a condo questionnaire to the HOA management company. The HOA completes it with information about the building’s finances, occupancy rates, insurance, and other relevant details. Lenders use this information to confirm project eligibility. Todd and Aaron follow up directly with the HOA to make sure it is returned promptly and does not delay your closing.
Are condo loan rates higher than single-family rates?
Conventional loans on condos may carry a small pricing adjustment compared to single-family homes due to the additional project risk. The adjustment is typically modest on warrantable projects and more noticeable on non-warrantable condos financed through portfolio products. Todd and Aaron will give you exact rate comparisons based on the specific building and your loan profile.
Still Have Questions?
Just Ask. We Pick Up the Phone.
No automated phone trees, no waiting on hold. You get Todd or Aaron directly.
Call Todd: (719) 482-5359 Call Aaron: (404) 455-5710