NMLS #1649161 · Florida and Maine · Vision Mortgage, LLC
Non warrantable condo loans in Florida and Maine
Your lender called the condo non warrantable. That's not a no. It's the wrong lender.
When a Florida building gets flagged for a failed milestone inspection, underfunded reserves, too many investors, or a special assessment, conventional financing dies on the spot. I'm a mortgage broker. I work with portfolio, non QM, and foreign national programs that most banks don't offer. Tell me about the building and I'll tell you straight, today, whether it can be financed.
Travis Penny, Mortgage Broker, NMLS #1649161, Vision Mortgage LLC NMLS #1286953
Licensed in Florida and Maine·NMLS #1649161·5.0 stars on Google and Experience.com
Can you get a mortgage on a non warrantable condo?
A non warrantable condo is a unit in a building that doesn't meet Fannie Mae or Freddie Mac project rules, so a conventional loan isn't available. You can still finance one. Portfolio, non QM, foreign national, and DSCR programs look at the building on their own terms. Expect a bigger down payment and a closer look at the building's budget, reserves, insurance, and any lawsuits. I do this for clients buying in Florida and in Maine. The first step is always the same: figure out exactly why the building failed, then match it to a program that can live with that issue.
Your deal didn't fall apart. Your lender just ran out of options.
You were days from closing. The money was in. Then the lender went quiet, came back with one word, "non warrantable," and no real answer. Here's what nobody told you. You didn't do anything wrong. The building tripped a rule, and your conventional lender only sells one kind of loan. When the building doesn't fit that box, they don't have a plan B. I do. A declined file isn't a dead deal. It's a deal sitting at the wrong desk.
What makes a condo non warrantable?
A non warrantable condo is a unit in a building that doesn't meet Fannie Mae or Freddie Mac project standards. Usually that's a failed milestone inspection, underfunded SIRS reserves, high investor ownership, pending litigation, excess commercial space, or a special assessment. Conventional loans aren't available. Portfolio, non QM, foreign national, and DSCR programs often still finance them.
| Warrantable | Non warrantable | |
|---|---|---|
| Loan type available | Conventional (Fannie/Freddie) | Portfolio, non QM, foreign national, DSCR |
| Typical down payment | 3% to 20% | 20% to 40% |
| Owner occupancy needs | Strict ratios | Flexible by program |
| Reserve / insurance scrutiny | Project level only | Detail level on building docs |
General education, not a loan offer. Down payment ranges vary by client, building, and program.
The secret your bank won't say out loud
You could have an 800 score and a large down payment and still get declined, because the lender isn't judging you. They're judging the building. And "non warrantable" isn't a verdict. It's a spectrum. Some flaws are easy to finance around. A few are dealbreakers for everyone. The difference between those two is the entire game, and most lenders can't tell you which one you're looking at. I can usually tell you on the first call.
The client
Income, credit, down payment, reserves. Necessary, but not the whole story.
The building
This is where most Florida deals live or die right now. And "non warrantable" is a spectrum, not a yes or no.
The master insurance
In Florida this alone kills deals. Thin coverage or a brutal named storm deductible and even a portfolio lender walks.
Usually financeable
- High investor concentration
- Single entity ownership over the limit
- Too much commercial space
- SIRS not yet complete
- Minor litigation
- Light reserves
Often financeable by no one (yet)
- Failed milestone Phase 2
- Building deemed structurally unsafe
- Large unfunded structural special assessment
- Real structural litigation
- No adequate master insurance
My job on the first call is to tell you which side of that line your building is on, so you don't waste weeks chasing a deal nobody can fund, or walk away from one that's actually placeable.
How do I find out if a condo is warrantable?
Ask early. Before you're under contract is best, and before your inspection period ends at the latest.
Here's what I look at:
- The condo questionnaire. The association or its management company fills it out for the lender. The answers on owner occupancy, delinquent dues, litigation, commercial space, and single owner concentration decide a lot.
- The budget and reserves. Is the association setting aside enough? Is there a reserve study?
- The master insurance policy. Coverage, deductibles, and whether the policy is in force.
- Board meeting records. Special assessments and big repairs show up here before they show up anywhere else.
- Any lawsuit involving the association.
If one of those comes back ugly, it doesn't automatically end the deal. It tells me which program to call.
Can you use FHA or VA on a non warrantable condo?
Sometimes. FHA and VA keep their own condo approval lists, separate from Fannie Mae and Freddie Mac. A building can fail conventional review and still be approved for FHA or VA, or the other way around. FHA can also approve a single unit in some buildings that aren't on its list. I check the FHA and VA lists along with the conventional review so you know every option before you give up on a building.
More on each program: Florida FHA loans, Maine FHA loans, Florida VA loans, Maine VA loans.
Non warrantable condos in Maine
Maine has its own version of this problem. Portland's peninsula has older buildings turned into condos alongside newer ones. Old Orchard Beach and the other beach towns can have buildings where many of the units are rentals, and heavy investor ownership is one of the classic reasons a building fails conventional review. Biddeford is seeing mill buildings converted to condos, and new conversions often need a careful lender review before they fit agency rules.
The rules are the same as in Florida. The building gets reviewed, not just you. When a Maine building comes back non warrantable, I look at the same menu: portfolio, non QM, DSCR for rentals, and the FHA and VA lists. In Maine, the review usually comes down to owner occupancy, reserves, insurance, litigation, and whether the project is finished.
Buying in Portland or Biddeford? My Portland and Biddeford pages cover those markets. If you're a Maine client buying a Florida condo, the rest of this page applies to you too.
Can I rent out a non warrantable condo?
Yes, if the association allows it. For investors, a DSCR loan can work on a non warrantable unit because it qualifies on the rent instead of your income. The building still gets reviewed, and rental rules in the condo documents matter. See my DSCR loan Florida page for how the rent to payment ratio works.
Is a non warrantable condo a bad buy?
Not automatically. Some buildings are non warrantable for reasons that don't touch the structure, like too many investor owners or a lot of commercial space. Others have real problems, like an unfunded structural assessment. Know which one you're buying. Also think about resale: your future buyer will face the same financing rules unless the building's status changes. That's not a reason to walk away. It's a reason to go in with your eyes open.
What it really takes, no sugarcoating.
These are the honest targets, not promises. Every building is its own animal. But this is where the deals actually get done.
Down payment
Plan on 20% to 40% down depending on the program and building. Private, condotel, and investment files can run 25% to 40%. If you're putting less than 20% down, this usually isn't the program.
General education, not a loan offer.
Credit
640 and up is the comfortable zone. 620 can still work with a larger down payment and stronger reserves. Below that, it's a more down payment or private money conversation. Don't disqualify yourself. Talk to me.
Reserves
6 months of payments minimum. On a building that failed milestone or has a pending assessment, plan for 12 months. Reserves can sit in retirement or brokerage accounts, not just cash.
DTI under 43%
Debt to income kept under 43%, with HOA dues counted in the payment.
Worst case. Lowest credit on a flagged building. Plan on 30% to 40% down depending on the building, and 12 months reserves and we have the most lenders to work with.
The lenders who say yes when the bank says no.
Conventional banks can't hold these loans, so they don't try. The ones who can are the lenders who keep loans on their own books or run non agency programs:
I've spent years building relationships across all of them. When one passes on a building, I already know who won't. You make one call. I work the whole bench.
Find out in 90 seconds if your condo can be saved.
A real diagnosis, not a generic prequalification. Built so you don't waste a week chasing the wrong lender.
What's your situation?
A condo rescue, without the runaround.
We talk first
A real conversation. Tell me the building and your numbers. I tell you which bucket it's in.
I work the network
I match your file and that building to the lenders who actually fund non warrantable Florida condos.
We close clean
I stay in the deal from application to keys. Direct access to your broker. No call centers.
This information is general education, not a loan offer or a commitment to lend. Down payment and credit requirements vary by client, property, and lender, and program guidelines change. For your own numbers, call or text me at (207) 615-7770 or email Travis@travis.mortgage.
Non warrantable condo financing: straight answers
Can I get a mortgage on a non warrantable condo in Florida?
Yes, often. Portfolio, non QM, foreign national, and DSCR programs can finance these buildings when conventional won't. Plan on a larger down payment. The building's specific issue and its master insurance decide whether it can be placed.
Why was my condo declined as non warrantable?
Almost always the building, not you. Common triggers are a failed or pending milestone inspection, underfunded SIRS reserves, too many investor owners, a special assessment, excess commercial space, or HOA litigation. Your file is fine. Your lender just doesn't have a program for the building.
How much down do I need?
A mildly non warrantable building may call for 20% to 25% down, while flagged buildings, condotels, and investment units may require 25% to 40% down. The building, occupancy, credit, and reserves determine the actual requirement. General education, not a loan offer.
What credit score do I need?
640 and up is the comfortable zone. 620 can still work with more money down and stronger reserves. Don't disqualify yourself before we talk.
What's a SIRS or milestone special assessment and does it kill my loan?
Not automatically. A completed SIRS or a fully funded assessment can actually help your case. The hard ones are an unfunded structural assessment or a failed milestone Phase 2 report. I'll tell you which side of that line your building is on in the first call.
Do you finance condotels and foreign national buyers?
Yes, through specialized programs built for exactly this. Expect 25% to 40% down on many condotel and foreign national programs, depending on the building, occupancy, credit, and reserves. The deal is doable, the math just looks different. General education, not a loan offer.
Are you a broker?
A broker. One bank only sells the one loan that bank makes. I shop your file and the building across a deep bench of non agency lenders and pick the one that actually fits.
What is a non warrantable condo?
It's a condo in a building that doesn't meet Fannie Mae or Freddie Mac project rules. The label is about the building, not you. Conventional financing isn't available, but portfolio, non QM, foreign national, and DSCR programs may still finance it.
How do I know if a condo is non warrantable before I make an offer?
Ask for the condo questionnaire, the budget, the reserve study if there is one, the master insurance policy, and recent board meeting records. Send them to me and I'll tell you which side of the line the building is on.
Can I get an FHA or VA loan on a non warrantable condo?
Sometimes. FHA and VA keep their own approval lists, separate from Fannie Mae and Freddie Mac. FHA can also approve a single unit in some buildings. I check those lists along with the conventional review.
Do you finance non warrantable condos in Maine?
Yes. I'm licensed in Maine and Florida. Portland, Old Orchard Beach, Biddeford and the rest of Maine get the same building review and the same program menu.
Can I rent out a non warrantable condo I finance?
If the condo documents allow rentals, yes. Investors often look at a DSCR loan, which qualifies on the rent instead of personal income.
Don't walk away from a deal that's actually financeable.
Don't give up the day the bank says no. Sometimes the problem has a solution.
Started in 2004 and I'm still here.