Non-warrantable condo? Start with the reason.
When a buyer’s loan stalls because of the condominium project, the board needs a specific finding and a practical next step.
What does non-warrantable condo mean?
“Non-warrantable” generally means a condominium project does not meet the project requirements for a particular conventional mortgage program. It does not establish that every lender or every loan program will decline the property.
Ask for the actual project finding
Ask the lender which requirement is not met, which documents support that conclusion, and whether the issue is missing evidence or a project condition. A borrower’s credit decision and a project’s eligibility are separate questions.
What can the HOA or condo board do?
| Concern | Board’s next step | Useful evidence |
|---|---|---|
| Budget or reserves | Compare the adopted budget and reserve study with the applicable test. | Budget, reserve schedule and study. |
| Master insurance | Ask the insurance agent to address the specific coverage or deductible concern. | Full policies, endorsements and written clarification. |
| Repairs or special assessments | Document the condition, work status and assessment purpose. | Inspection reports, repair records and assessment details. |
| Litigation, ownership or use | Gather the facts before assuming the issue can be resolved. | Attorney correspondence, ownership records and governing documents. |
What if the problem is missing paperwork?
Provide a complete, consistent record. A certificate of insurance may not answer a policy question, and a budget summary may not show the reserve contribution. Use our lender questionnaire checklist to organize the file.
Can financing become available again?
That depends on the issue and the lender’s current review. Some concerns require corrected records; others require funding, completed work or professional advice. Condo Consult can identify findings and coordinate follow-through within an agreed scope. We cannot promise a change in eligibility or a closing date.
What should you send Condo Consult?
Start with the association name, state, unit count and the lender’s stated concern. We will explain the documents needed for a project review. Send confidential records only through the agreed document-sharing process.
Have a condo project that needs a clear picture?
Tell us about your association. We confirm what we need, the timeline and the cost before any work begins.