Non-Warrantable Condo Loan
NASB may be able to help you with a non-warrantable condo loan If the condo you want to purchase doesn't meet conventional loan guidelines.
When your condo doesn't meet conventional loan requirements.
Condominiums can be flagged as non-warrantable for any number of reasons-the project has yet to be completed, too many units are occupied by non-owners, one person or entity owns more than 10% of the total number of units, or the developer has not turned over control of the HOA to the owners. Whatever the reason, when this happens, getting a loan to purchase a condo on this property can be very difficult. NASB is a mortgage leader for providing non-QM loans like non-warrantable condo loans. We understand that not all borrowers can get a conventional loan, and work with them to get the financing they need quickly and efficiently.Non-Warrantable Condo Loan Requirements
- The last six months of 1099 income, less if 1099 income is from most recent employer.
- Documentation of year-to-date income
- 680 minimum credit score
- Minimum 15% down with mortgage insurance approval
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Minimum loan amount of $175,000 required to apply*
Non-Warrantable Condo Loan FAQs
What is a non-warrantable condo loan?
A non-warrantable condo loan is what borrowers seek to purchase a condo when it doesn't meet conventional loan requirement and cannot be approved by government-backed entities like Fannie Mae and Freddie Mac.
When is a condo considered non-warrantable?
There are a number of factors that can contribute to a condo being tagged as non-warrantable, including:
- Ownership requires a membership, like a golf club.
- The project is new construction and not completed yet.
- One person or entity owns more than 10% of the total number of units.
- The condo allows for the majority of the units to be rentals and/or short-term rental units.
- The condo developer hasn’t ceded control of the owner’s association yet.
- More than 25% of the units in development will be used commercially.
- There is litigation of any kind tied to the project.
What are non-warrantable condo loan requirements?
Non-warrantable condo loan requirements include:
- A minimum credit score of 680
- Last two years of verifiable income, including W-2s and tax returns
- A debt-to-income ratio (DTI) of no more than 45%
- Different rate and term options are presented
- Points and fees cannot exceed 3% of the loan amount
What is the minimum required loan amount?
A minimum loan amount of $175,000 is required to apply. Exceptions include mortgage products for properties located within the Greater Kansas City metro and surrounding areas. Contact a NASB Loan Officer for details on the excluded areas and/or zip codes.
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