"Warrantable" describes the building, not the borrower
Every condominium loan carries two underwriting jobs. One looks at you: credit, income, the down payment. The other looks at the project: its budget, its reserves, its insurance, how many owners are behind on dues, whether it is being sued, whether it is safe. The industry shorthand for a project that passes the agencies' version of that second review is warrantable. The agencies' own word for one that fails is ineligible.
That distinction matters because it tells you where the fix is. A borrower who is declined for a warrantability problem does not need a better credit score or a bigger paycheck. They need a lender whose building rules are different. Two buyers can look at the same unit on the same day, and the one with the "better" file can still be the one who cannot close.
Why buildings fail the review
Fannie Mae publishes the list of project traits it will not accept. The common ones, with the exact thresholds, are on the reasons page; in short:
- Hotel-like operation — front desk check-in, a rental pool, daily rentals, "resort" in the name. See condotels.
- Litigation beyond minor, insured matters. See HOA lawsuits.
- Critical repairs and special assessments for repairs not yet finished. See special assessments.
- Ownership concentration — one person or company holding too many units.
- Commercial space above the agency limit.
- Dues delinquency and thin reserves in the association budget.
- New construction that has not sold enough units to owner-occupants and second-home buyers. See new construction.
- Insurance that falls short of agency requirements. See master insurance.
What changes when the building is non-warrantable
The conventional path closes. FHA and VA keep their own approval lists, which occasionally help and usually do not — FHA's project rules are stricter than the agencies' in several places (the FHA page explains). What remains is the lender that keeps the loan on its own books or sells it into the non-QM market, where the building is reviewed against that lender's guidelines instead of Fannie Mae's.
Expect three differences from a conventional condo loan, each set program by program rather than published here:
- A larger down payment is common, and the gap widens on second homes and rentals.
- Pricing above conventional, because the lender is holding a risk the agencies declined.
- More paperwork on the building: the full association questionnaire, the budget, the reserve study, recent minutes, the insurance declarations, and anything about a lawsuit or an assessment.
What is usually financeable, and what usually is not
| Building issue | Portfolio / non-QM lenders, generally |
|---|---|
| Condotel or short-term rental program | Often financeable, with program-specific rules |
| Litigation | Case by case — the nature of the claim decides it |
| One owner holding many units | Commonly accepted |
| Commercial or mixed-use space | Commonly accepted |
| New project, few units sold | Often financeable |
| Special assessment for work already underway | Case by case |
| Unfinished repairs affecting safety or structure | Usually declined until the work is done and documented |
| Inadequate master insurance | Usually declined until coverage is fixed |
The last two rows are the honest limit. A lender outside the agency system is still lending against the building, and a building with unresolved safety problems is a building no one wants as collateral. When that is the issue, the useful question is where the association is in the repair process — which the Florida law page helps you ask.
Primary home, second home or rental
All three are financed. A primary residence or second home is a consumer loan qualified on your income — documented with tax returns and pay stubs, or on some programs with bank statements for self-employed buyers. A rental can be qualified on the unit's rent instead of your income; that loan is covered on the rental page and on the sister site, QualifyOnRent.com.
Why this is mostly a Florida problem
Florida has about 1.43 million condominium units, more than any state, and a reported 1,438 of its buildings were on Fannie Mae's unavailable list in March 2025, roughly a quarter of the national total. Older coastal towers, the post-Surfside inspection and reserve laws, the insurance market and a large vacation-rental stock all push Florida buildings out of conventional lending. The Florida page breaks it down by region, from Miami-Dade to the Panhandle.
How to start
The fastest first conversation needs four things: the building's name and address, the unit, whether you are buying, refinancing or selling, and the reason the building was flagged if a lender has already told you. The checklist on the home page helps you name that reason in about a minute.
Common questions
Can I get a mortgage on a non-warrantable condo?
Yes, in most cases, through a portfolio or non-QM lender that reviews the building against its own guidelines. The exception most lenders share is a building with unfinished repairs that affect safety or structure.
Is a non-warrantable condo a bad building?
Not necessarily. Many are condotels, new projects still selling, or buildings with one large investor or a restaurant on the ground floor. The label means the building fails one agency test, not that it is unsound.
Will I pay more for a non-warrantable condo loan?
Usually, yes — pricing and the down payment typically run above conventional. Both are set by each lender, so the comparison is made on your actual building and file.
Can the building become warrantable later?
Often. Finished repairs, a settled lawsuit, more units sold, or a larger reserve contribution can each move a project back. That is the usual refinance path.