Condo Financing & Non Warrantable Condo Financing Company


It can be difficult locating a non-warrantable mortgage company since non-warrantable condos are not eligible to be sold to Freddie Mac and Fannie Mae. They do not meet standard requirements, and are considered a “risk investment” for them. If you do locate an experienced and willing mortgage company to put their time and effort into securing financing, their compensation and down payment requirements may be so over inflated that you cannot afford the loan.

Smart Financial Services, Inc. offers flexible non-warrantable condo loan programs. Below are some options that are available:

Option 1:

· A Single Investor can own up to 25% of the condo units.

· 40% of the condo units can be Non-Owner Occupied.

· 95% LTV Purchase with only a 5% Down Payment.

· Can be the first to finance in a new condo project.

· The Developer “Does Not” need to have the entire condo project or phase completed; just the actual condo needs to be 100% finished.

 Option 2:

· All the common areas need to completed.

· 50% of the units must be completed.

· 70% must be owner occupied or second home.

· One person may not own more than 10% of the project.

· Minimum Pre-Sale requirement is 50%.

· Purchaser can be first investor in the complex providing the pre-sale requirements have been met.

· Property Types – High/Low Rise (4 or less floors) Conversions and PUD.

· 10 Minimum Units.

· Minimum of 600 Square Feet.

· HOA necessary if not in control by owners that are managed by separate entity.

· Maximum of 2 properties with an exception of 4. 

· Taxes and Insurance must be escrowed.

· No privately held secondary financing.

· Completion of Non Warrantable Condo Questionnaire required.

· Fidelity Bond Insurance is required.

· HOA dues cannot be more than 6 months in arrears at time of purchase.

Option 3: 

· Purchase a HUD or FHA approved condo with only 3.50% down.