Condo Warrantability and HOA Documentation for Mortgage Processors
Condo financing requires review of HOA financial health, owner-occupancy ratios, delinquency rates, and pending litigation.
What the Lender Requires
- HOA questionnaire (completed by HOA management company)
- HOA master insurance policy
- HOA budget and financials (last 2 years)
- HOA meeting minutes (last 2 meetings)
- Resale certificate or certificate of assessments
- CC&Rs and bylaws
How CTC Processes Condo and HOA Documentation Requirements Files
- 01Order HOA questionnaire immediately on intake
- 02Review for warrantability issues
- 03Submit condo project approval if needed
- 04Identify portfolio lender if non-warrantable
- 05Coordinate HOA docs before closing
Common Conditions Related to Condo and HOA Documentation Requirements
- HOA questionnaire showing litigation, investor concentration, or delinquency issues
- Condo project approval from FNMA/FHLMC for non-approved projects
- Master insurance policy showing adequate coverage
- Pending special assessment documentation
How CTC Handles Condo and HOA Documentation Requirements
Condo warrantability is one of the most common deal-killers CTC sees. Investor concentration above 35%, pending litigation, or hotel-style management all create non-warrantable situations. CTC identifies these on day one.
Frequently Asked Questions
What makes a condo non-warrantable?
Investor units exceeding 35%, pending HOA litigation, delinquency rate above 15%, single entity owning more than 10% of units, hotel-style management, or incomplete construction.
How long does an HOA questionnaire take?
Professional property managers: 5–10 business days. Self-managed HOAs may take longer. CTC orders HOA questionnaires on day one and follows up weekly.
Can I still get a mortgage on a non-warrantable condo?
Yes — portfolio lenders and Non-QM investors actively lend on non-warrantable condos. Rates are typically 0.25–0.75% higher with 10–20% minimum down payment.