Realtor's Guide to Condo Financing: Warrantability and HOA Documentation
Condo financing has more moving parts than single-family home financing. Realtors who understand warrantability and HOA documentation save their clients from avoidable deal failures.
What You'll Learn
- What condo warrantability means
- What makes a condo non-warrantable
- How the HOA questionnaire affects financing
- How to identify potentially non-warrantable buildings before making offers
- What lenders are available for non-warrantable condos
The Full Explanation
CTC Processing identifies condo warrantability issues at intake and immediately identifies portfolio or Non-QM lender alternatives. Realtors who call us on the front end (before their client makes an offer on a non-warrantable building) can save significant time.
Frequently Asked Questions
How can I know before showing whether a condo building is warrantable?
Check: HOA litigation history (ask listing agent), investor unit concentration (HOA may know), and any pending special assessments. Buildings with hotel-style or Airbnb-heavy rental programs are almost always non-warrantable.
What if my buyer makes an offer on a non-warrantable condo?
The loan must be placed with a portfolio lender or Non-QM investor. Rates are typically 0.25–0.75% higher. The LO should identify this before the inspection contingency expires. CTC flags non-warrantable condos immediately on intake.
What HOA documents does the lender need?
HOA questionnaire (completed by management company), master insurance policy, budget and financials, meeting minutes (last 2), and certificate of assessments. CTC orders these on day one. The HOA turnaround time is often the biggest condo closing delay.