Financing in Houston>Question Details

Wall8382, Home Buyer in Houston, TX

Non warrantable condo loans?

Asked by Wall8382, Houston, TX Sat Sep 28, 2013

I am interested in a condo in a newly built building that requires a non warrantable loan due to it not meeting the 51% FHA owner occupancy requirements. I have 30% to put down of the asking price and excellent credit, but can't find any lenders to loan to under decent terms (I.e. 20-30 year loan with a good interest rate).

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Rosemarie, would you be able to tell me which credit union the buyer went through? Thanks.
2 votes Thank Flag Link Sat Sep 28, 2013
It was Motorola credit union. I don't know if he works for them or not. If you are not working with an agent I would be glad to help you,
Flag Sat Sep 28, 2013
There are a numebr of lenders that offer financing for Non Warrantable Condos. BBVA Compass has a portfolio program that finances Non Warrantable Condos. LTV of 70%(30% down) for loans up to $2M, with loan amounts available up to $5M.

Hope this helps. Feel free to reach out to me with any questions.

Matt Brozek
BBVA Compass
NMLS #8985
1 vote Thank Flag Link Tue Oct 29, 2013
They are still out there. I just sold one and the buyer went through his credit union. You ay check around with the credit unions. Most of them, anyone can join by opening an account.
1 vote Thank Flag Link Sat Sep 28, 2013
I doubt if you'll find one using traditional sources. You might want to look into private lenders ... but be prepared once again to pay a bit more in interest. Best of luck.
1 vote Thank Flag Link Sat Sep 28, 2013
Is anyone aware of lenders (outside of CUs) doing N-W condo loans above 80% LTV?
0 votes Thank Flag Link Tue Oct 21, 2014
Hello, I am a lender that specializes in Non-warrantable condos and condotel type properties. I have the ability to help these individuals and lend in all states. (I also offer wholesale options for other lenders.) In most cases I can help as long as the borrowers put down a minimum of 20%.

Feel free to reach out to me with questions.

Nick Glasse
AVP of Retail/Wholesale Sales
0 votes Thank Flag Link Mon Jun 16, 2014
Nick. I am a broker and would be interested in discussing wholesale lending through you. Frank Baumgartner 303-295-0100
Flag Thu Jul 2, 2015

Can you contact me via email. I have a client who wants to buy a condo in CO.

He has great credit and can put money down.

Thanks Daniel Compton email
Flag Tue Mar 17, 2015
I am interested in a now warrantable condo loan in Tucson AZ.
Flag Thu Aug 21, 2014
I work for Rabobank in California. We are portfolio lenders that specialize in non warrantable condo's. Although we only lend in California. But they are out there.
0 votes Thank Flag Link Mon May 5, 2014
hey Mark, please provide me with your email
Flag Wed Jan 14, 2015
Loans like these are possible and can be great options for you. Of course you will need the usual requirements such as good credit, verifiable income, and a sufficient down payment. If your finances are strong in these areas then there are non-warrantable financing options that would be available to you. The best thing for you to do is to speak with a knowledgeable lender to see if you can get started on financing a new home. If you need additional assistance, feel free to reach out. Good luck!

Brian Nguyen
Sr. Mortgage Banker
NMLS # 659743
Phone: 949.667.2887
0 votes Thank Flag Link Wed Mar 12, 2014
Yes we have access to funding non-warrantable condos. Call or email me anytime

Bill Dunger 253-232-5843
0 votes Thank Flag Link Thu Feb 6, 2014
I am interested in a non warrantable condo loan in Tucson AZ.
Flag Thu Aug 21, 2014
Sorry... I should have added this to my post.... I can only fund them in WA, OR, and CA

Flag Thu Feb 20, 2014
Are you buying this as a primary residence? If so and you have 30% down, you can just get a conforming loan.

Here's what Fannie Mae says:

"At least 51% of the total units in the project must be conveyed to purchasers as
principal residences or second homes. This requirement does not apply when
lenders deliver mortgage loans secured by principal residences or second homes."

This means if the owner occupancy is too low, it doesn't matter as long as you are buying it as owner occupied. This only makes logical sense because by doing so you are raising the owner occupancy ratio, which is what they want in the first place.

The company I work for is licensed in Texas, I personally am not but I'd be happy to put you in touch with someone that understands the guidelines and can assist you.
0 votes Thank Flag Link Mon Sep 30, 2013
Local banks and hard money lenders are going to be your primary resource for this type of loan.
0 votes Thank Flag Link Mon Sep 30, 2013
You could use one of the banks who have limited condo review program.
If this condominium does not have a pending litigation, and no entity owns more than 10% of all units, with 25% down you should be able to buy with a regular rate.

Hope this helps,

Irina Karan
Beachfront Realty, Inc.
0 votes Thank Flag Link Sat Sep 28, 2013
Although I'm not a mortgage broker, I understand that the following information is part of the determination a lender will make before a condominium is financed:

Primary Residence -

Conventional – minimum down 5%

4 questions confirming eligibility:

• Current owner occupancy rate ?
• Is there litigation?
• Does an owner own more than 10% of units?
• Does annual budget have 10% in reserves ?

FHA - 3.5% minimum down payment – max loan amount $271,050.00 – Condo project must be FHA Condo project approved

I've also heard that if it is not owner occupied (i.e. primary residence) then a minimum of 20% down is required in addition to the other criteria to meet eligibility.

I hope this helps. Your lender is your best source of information regarding their lending practices and your specific eligibility.
0 votes Thank Flag Link Sat Sep 28, 2013
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