Mortgage Myth #16: “No, your condo is non-warrantable, so it can’t be financed.”
Non-Warrantable Condos Can Be Financed – Here’s the Truth
Don’t believe the myth that non-warrantable condos are impossible to finance. The right lender can get it done.
The Myth
“You can’t finance a non-warrantable condo.”
The Truth
At Luminate Bank, we finance non-warrantable condos in-house. That means you don’t have to rely on outside brokers, uncertain timelines, or guesswork. If you’ve been told “no” elsewhere, the real answer might actually be “yes.”
Why People Believe This
Most lenders stick to the conventional Fannie Mae/Freddie Mac box. If a condo project doesn’t meet those guidelines—too many rentals, a lawsuit in the association, a single owner with too many units, etc.—they label it non-warrantable. And since many banks won’t touch these, buyers assume financing is impossible.
Detailed Breakdown
- What “Non-Warrantable” Means: Simply that the condo project doesn’t meet standard agency rules. It doesn’t mean the property is bad—it just falls outside conventional guidelines.
- Common Reasons: Too high investor ownership, not enough owner-occupancy, ongoing litigation, or budget/reserve issues in the HOA.
- Your Options: Instead of hitting a dead end, you need a lender (like us) with in-house solutions. Because we don’t broker these loans out, we control the process from start to finish. That means faster approvals, clearer communication, and more certainty at closing.
Real-World Example
A buyer in Milwaukee found the perfect downtown condo but was told by their first bank that it was “non-warrantable and unfinanceable.” They were ready to give up. When they came to us, we explained our in-house program, and 30 days later they were moving in. Same condo. Same buyer. Totally different outcome.
The Bottom Line
Non-warrantable doesn’t mean non-financeable. It just means you need the right lender with the right strategy.
Take the Next Step
Don’t let a “non-warrantable” label stop your condo dream. We do these loans in-house at Luminate Bank. Click here to connect today and see what’s truly possible.
