Many of Summit County’s most popular condos, in Breckenridge, Keystone, Copper Mountain and Frisco, don’t fit standard Fannie Mae and Freddie Mac guidelines. These are called non-warrantable condos, and they’re one of the most common reasons mountain buyers get turned down by a bank. As an independent mortgage broker in Frisco, Luna Lending Summit works with lenders that finance these projects.
What makes a condo non-warrantable?
A condo project may be non-warrantable if it has features like these:
- Hotel-style operations, such as a front desk, a rental pool or daily housekeeping (common in condo-hotels)
- A large share of units used as short-term rentals
- One owner or entity holding many units in the project
- Commercial space making up a large part of the building
- Pending litigation, special assessments or low HOA reserves
- Units smaller than a lender’s minimum size, or units without a full kitchen
How we finance non-warrantable condos
Instead of a conventional conforming loan, these purchases are usually financed with portfolio or non-QM loan programs, where the lender sets its own guidelines. Requirements vary a lot between lenders, so comparing several matters. We’ll:
- Review the condo project’s HOA questionnaire early, ideally before you write an offer
- Match the project and your plans for the unit (second home, rental or primary home) with lenders whose guidelines fit
- Coordinate with your agent and the HOA so the review doesn’t hold up closing
Common questions
How do I know if a Summit County condo is warrantable?
The HOA’s condo questionnaire and budget usually answer it. Send us the listing and we can check before you make an offer.
Can I rent out a non-warrantable condo?
Often, yes. Some programs are designed for rental use. Town short-term rental licensing rules also apply, so check with the town where the unit is located.
Do non-warrantable condo loans cost more?
Pricing and requirements are typically different from conventional loans and vary by lender. We’ll show you the options side by side, with all costs disclosed in your Loan Estimate.
Talk with Athena Damianos about your Summit County loan or learn more about Athena.
Luna Lending, Inc. NMLS #2032089 | Athena Damianos NMLS #2092623 | 610 Main St, Suite 11, Office B, Frisco, CO 80443. Equal Housing Opportunity. This is not a commitment to lend. All loans are subject to credit approval, property review and program guidelines, which can change without notice.