Non-Warrantable Condo Mortgages are Available!
Just because your condo doesn’t check all the Fannie/Freddie boxes doesn’t mean it’s not a great investment.
Is A Non-Warrantable Condo Mortgage Right For You?
A non-warrantable condo is a condo that doesn’t meet the conventional loan guidelines set by Fannie Mae and Freddie Mac. The issue is usually the building or the HOA, not you. Common reasons include:
The HOA is involved in ongoing litigation
The HOA’s reserves or finances fall short of Fannie Mae and Freddie Mac standards
The building needs critical repairs or has deferred maintenance
Large or ongoing special assessments
The project is new, unfinished or recently converted
Too much of the building is used as commercial space
Heavy short-term rental activity or hotel-style services (condotels)
One owner holds a large share of the units
The master insurance policy doesn’t meet requirements
Our Non-Warrantable Condo Loan is built for these situations. We use our own guidelines instead of Fannie Mae’s and Freddie Mac’s, so a flag on the building doesn’t have to end the conversation. Some lenders stop at the first red flag. We look at the full picture.
Not sure if your condo is warrantable? Talk to one of our loan experts and we’ll help you find out.
Your Condo Doesn't Meet Conventional Guidelines.
That Doesn't Mean You Can't Get a Mortgage.
Why Choose Our Non-Warrantable Condo Loan?
Here’s the short list:
Financing for complex condo scenarios - we understand the nuances and have solutions that make non-warrantable possible.
Flexible underwriting guidelines - our approach gives you options beyond Fannie/Freddie’s restrictions.
Great for Primary, Secondary Homes, or Investment Properties - whether it’s a beach condo on the west side of Michigan, a ski retreat in northern Michigan, or a city rental in Detroit or Grand Rapids, this loan can work for you.
Avoid the runaround - many lenders walk away at the word “non-warrantable” - we lean in and walk you through.
Real people who know how to get it done - you’ll work with experts who know what questions to ask and how to close fast.
Get Your Non-Warrantable Condo Rate Quote Now!
In 2026, Fannie Mae and Freddie Mac made their biggest update to condo lending rules in years. Some condos got easier to finance. Others, especially buildings with underfunded reserves, got harder.
Here’s what changed:
Full project reviews are now the norm. For loan applications dated on or after August 3, 2026, the faster “limited” review is gone for buildings with more than 10 units. Lenders now take a closer look at the HOA’s budget, reserves and insurance.
Reserve requirements are going up. Starting January 4, 2027, HOAs generally need to set aside at least 15% of their annual budget for reserves, up from 10%. The exception is an HOA with a recent reserve study that it’s fully funding.
Older reserve studies no longer count. A reserve study has to be less than three years old to be used.
Investor-heavy buildings got a break. The old 50% cap on investor-owned units in established buildings has been retired.
Small buildings may skip the review. Projects with 10 or fewer units may qualify for a waiver of the project review.
Insurance rules were updated. Roofs no longer have to be insured at full replacement cost, and master policies now have a maximum deductible of $50,000 per unit.
What does this mean for you? If your condo was flagged during its project review, or the HOA’s reserves fall short of the new minimums, you still have options. And if your building used to be non-warrantable, it may now qualify for conventional financing. We offer both, so we’ll help you figure out which one fits.
Guidelines change often and every building is different. Talk to one of our loan experts about your specific condo. All loans are subject to credit and property approval.
Important Non-Warrantable Condo Changes for 2026
Why Choose Our Non-Warrantable Condo Loan?
You are a good fit for us if you are
Buyers whose condo was flagged as non-warrantable during the project review
Second-home buyers looking at resort or vacation-area condos
Investors buying in buildings that don’t meet Fannie Mae and Freddie Mac standards
Buyers in new or recently converted developments
Owners looking to refinance a condo that’s now non-warrantable
Buyers turned down by another lender because of the building, not their finances
Buyers who love the condo, even if the guidelines don’t
In a shifting real estate market like Detroit, Michigan, non-warrantable status is highly common—especially in historic conversions, downtown high-rises, and waterfront developments.
Why Detroit Condos Often Become Non-Warrantable
High Concentration of Renters / Investors: If more than 50% of the units in the building are rented out or investor-owned rather than primary residences, conventional lenders back away. This is a frequent occurrence in Detroit's high-density rental pockets.
Single-Entity Ownership: When one investor or entity owns too many units within the same association (typically exceeding 10% to 20% depending on building size), it is flagged. For instance, certain local investor packages feature blocks of units under single ownership.
Pending Litigation: If the homeowners association (HOA) is involved in an active lawsuit against a developer or a major contractor over structural issues, it automatically disqualifies the building for traditional financing.
Inadequate Financial Reserves: The HOA must allocate at least 10% of its annual budget into a dedicated cash reserve account. Many older Detroit complexes struggling with deferred maintenance lack these mandatory reserves.
Commercial Space Mix: If more than 20% to 35% of the total square footage of the building is dedicated to commercial or retail use (common in downtown mixed-use buildings), conventional financing is restricted.