In short
A non-warrantable condo loan is a non-QM mortgage for a unit in a condo project that doesn't meet Fannie Mae or Freddie Mac guidelines. Instead of agency condo rules, the investor uses its own guidelines for the project and focuses more on you as the borrower. Waymaker offers full documentation and bank statement options starting at a 620 credit score.
Reviewed by Scottie Campbell, NMLS #1610726 · Last updated October 18, 2026
What is a non-warrantable condo, and can I still finance one?
A non-warrantable condo is a unit in a project that doesn't meet Fannie Mae or Freddie Mac guidelines, often because of high investor ownership, one entity owning too many units, pending litigation, thin HOA reserves, too much commercial space or incomplete inspections. Most banks stop there. You can still finance it with a non-QM non-warrantable condo loan, which uses the investor's own guidelines instead of agency condo rules. I offer full documentation and bank statement options starting at a 620 credit score, and I can take your file to more than one investor until the guidelines fit.
Key takeaways
If a lender just told you the condo you love doesn't qualify, take a breath. Usually the problem is the building, not you. I'm Scottie Campbell, Mortgage Advisor and owner of Waymaker Mortgage Company, and I help buyers finance non-warrantable condos with full documentation and bank statement loans through multiple investor partners. It's never a no. It's always a how.
When the Building Is the Problem, Not You
Here's a call I get a lot. A buyer has strong income, solid credit and money saved. They find a condo they love, write an offer, and then hear the words "the building doesn't qualify." Nothing about their own finances changed. The condo project itself failed a set of rules they never knew existed.
That condo is what lenders call non-warrantable. Quite frankly, it's one of the most misunderstood corners of home financing, and it's where a lot of good deals quietly fall apart. It doesn't have to go that way. It's never a no. It's always a how.
What "Warrantable" Actually Means
For a standard conventional loan, the lender has to be able to sell that loan to Fannie Mae or Freddie Mac. To do that, the whole condo project, not just your unit, has to meet their guidelines. When the project meets them, it's warrantable. When it doesn't, it's non-warrantable, and most banks stop right there.
Common reasons a project falls outside those guidelines:
- Investor concentration: a high share of units are rented out instead of owner occupied
- Single-entity ownership: one person or company owns too many units in the building
- Pending litigation: the association is involved in a lawsuit
- Thin reserves: the HOA isn't setting aside enough money for future repairs
- Commercial space: too much of the building is used for retail, office or restaurants
- Condotel features: hotel-style rentals, front desks or short-term rental programs
- Inspection and repair issues: incomplete structural inspections, reserve studies or deferred maintenance
- Newer projects: buildings still selling units or not yet turned over to the owners
Any one of these can flag the project, even when your file is spotless.
How a Non-Warrantable Condo Loan Works
A non-warrantable condo loan is a non-QM loan. It isn't sold to Fannie Mae or Freddie Mac, so it doesn't have to follow their condo rules. Instead, the investor reviews the health of the project on its own terms and puts more weight on you as the borrower.
I offer two main paths:
- Full documentation: you qualify with traditional income documents like W-2s, pay stubs and tax returns.
- Bank statement: you qualify using business or personal bank statements instead of tax returns, which is a strong fit for self-employed buyers.
Both paths start at a minimum credit score of 620. Expect the investor to ask for a larger down payment and more reserves than a typical condo loan, since they're taking on more of the building's risk. The exact numbers depend on the program, the project and your full scenario.
Why Where You Apply Matters
This is where Waymaker Mortgage Company works differently than a bank. A bank has one underwriting desk and one set of condo rules. If your building doesn't fit that box, you're done.
I work with multiple non-QM investor partners, and each one looks at condo projects a little differently. One investor may pass on a building with pending litigation while another is comfortable with it. One may cap investor concentration where another allows more. If one investor's guidelines don't fit, I take the file to one that does. When the bank statement path is the right fit, Waymaker closes and funds that loan in house, in our own name.
What that means for you is more doors to knock on before anyone tells you to walk away from the unit.
Getting Ahead of the Problem
The best time to learn a condo is non-warrantable is before you write the offer, not two weeks before closing. Here's how I like to run it:
- Greenlight Approval first. I pre-underwrite your file up front, so your side of the deal is already reviewed before you shop.
- Review the project early. Send me the building name or address. My team requests the condo questionnaire and HOA documents and we look for red flags right away.
- Match the investor. I line your file and the project up with the investor whose guidelines fit both.
- Run a Total Cost Analysis. We look at the total cost over the time you expect to own the condo, not one number on a page.
Your rate depends on your scenario and the day's market. Reach out and I'll price it for real.
Full Doc vs. Bank Statement at a Glance
| Full Documentation | Bank Statement | |
|---|---|---|
| Minimum credit score | 620 | 620 |
| How income is shown | W-2s, pay stubs, tax returns | 12 or 24 months of bank statements |
| Best fit | W-2 earners and salaried buyers | Self-employed buyers and business owners |
| Condo project review | Investor's own guidelines | Investor's own guidelines |
Can't Do It Now Doesn't Mean Can't Do It Ever
Projects change. An association finishes its repairs, resolves a lawsuit or builds its reserves back up, and a non-warrantable building can become warrantable again. If that happens after you close, a refinance into a conventional loan may make sense down the road. I'll keep an eye on that with you.
Let's Look at Your Building
Whether you're buying in Georgetown, TX or anywhere else I'm licensed (Texas, Florida, Pennsylvania and Ohio), send me the condo you're considering. You're talking to the owner of this company, and I'll give you a straight read on what it will take. My job is to educate and empower you. Your job is to decide. Feel free to text me.
Information on this page is general and educational. It is not a commitment to lend or an offer of credit. Programs, guidelines and eligibility change and depend on your full scenario. Waymaker Mortgage Company, NMLS 2440476. Equal Housing Lender.
Quick facts
- Minimum credit score
- 620 (full doc and bank statement)
- Loan type
- Non-QM, investor guidelines instead of agency condo rules
- Income options
- Full documentation or bank statements
- Down payment
- Larger than a typical condo loan; set by program and project
- Funding
- Bank statement loans funded in house; multiple non-QM investors
- Licensed in
- Texas, Florida, Pennsylvania and Ohio
Is this loan right for you?
Who it's for
- Buyers whose condo was declined because the project doesn't meet Fannie Mae or Freddie Mac guidelines
- Self-employed buyers who want to qualify with bank statements on a condo purchase
- Buyers looking at condotels, mixed-use buildings or projects with heavy investor ownership
- Buyers with a 620 or higher credit score and savings for a larger down payment and reserves
Who it may not fit
- Buyers whose condo is warrantable, since a conventional, FHA or VA loan may cost less over time
- Buyers who need a very low down payment or down payment assistance on the purchase
- Buyers with credit below 620 who aren't ready to work on a plan first (can't do it now doesn't mean can't do it ever)
Pros and cons
Pros
- Lets you buy a condo that most banks won't finance
- Full documentation and bank statement options to fit W-2 and self-employed buyers
- Multiple investor partners, so one decline doesn't end the deal
- Project review can start before you write an offer
- Pairs with Greenlight Approval so your side of the file is pre-underwritten
Trade-offs to weigh
- Usually requires a larger down payment and more reserves than a standard condo loan
- Pricing and terms vary more by investor and project than on agency loans
- The project review adds documents and steps, so starting early matters
Frequently asked questions
How do I find out if a condo is warrantable?
It takes a look at the project itself: the HOA budget and reserves, owner versus renter occupancy, ownership concentration, litigation and inspection status. My team requests the condo questionnaire and HOA documents, usually before you write an offer. Send me the building name or address and we'll get started.
What credit score do I need for a non-warrantable condo loan?
The minimum credit score is 620 on both the full documentation and bank statement options. Your score is one piece of the picture, along with your down payment, reserves and the condo project itself, so I review the whole file before recommending a path.
How much do I need to put down?
Plan on more than a standard condo loan, since the investor is taking on more of the building's risk. The exact amount depends on the program, the project and your full scenario. Once I see your file and the building, I'll give you real numbers through a Mortgage Action Plan.
I'm self-employed. Can I use a bank statement loan on a non-warrantable condo?
Yes. The bank statement option lets you qualify using business or personal bank statements instead of tax returns, with a 620 minimum credit score. Waymaker closes and funds bank statement loans in house, with underwriting through multiple non-QM investors.
What about my interest rate?
Your rate depends on your scenario and the day's market. Reach out and I'll price it for real. I'll also walk you through a Total Cost Analysis, so you see the total cost over the time you plan to own the condo, not just one number.
Can I refinance into a conventional loan later?
Possibly. If the association resolves the issues that made the project non-warrantable, such as finishing repairs, settling litigation or rebuilding reserves, the building may become warrantable again. At that point a conventional refinance may be worth a look, and I'll help you weigh it.
Can I buy a non-warrantable condo as an investment property or second home?
Often, yes, depending on the investor's guidelines and the project. Occupancy changes the requirements, so tell me how you plan to use the condo and I'll match you with an investor whose rules fit.
Related loan programs
Bank-statement, 1099 and other self-employed loans funded in house by Waymaker Mortgage Company, with a Mortgage Advisor who takes your file to the investor that fits.
Qualify on the property's rent, not your tax returns. I invest in real estate myself, and Waymaker Mortgage Company funds standard DSCR loans in house.
Buying a higher-priced home? I shop your file across multiple investor partners and build a jumbo strategy around the total cost, not one number.
Last updated October 18, 2026 · Reviewed by Scottie Campbell, NMLS #1610726. This page is educational and not a commitment to lend; program details change — ask for current figures.