Non-Warrantable Condo Loans from Deephaven

A product available for condos that can’t qualify for traditional financing

Deephaven’s Non-Warrantable Condo product offers your borrowers a solution for condo projects that don’t fit the guidelines for a traditional agency loan. Solutions available under the Expanded-prime, Non-prime, and DSCR programs.  Our Non-Warrantable Condo mortgage product is perfect for situaitons where there is a high percentage of non-owner occupied units and other situations where a condo development has become non-warrantable.

Program Highlights:

  • Loan amounts up to $3.5M
  • LTV up to 80%
  • Full doc, 12 or 24 months personal or business bank statements, 1099 + YTD bank statements, 1-year profit & loss
  • Minimum FICO 620
  • Allowed in our closed end second mortgage products: HELOAN, HELOC and DSCR
  • Short-term rentals allowed including AirDNA with a maximum LTV of 75% (5% reduction in LTV)

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Non-Warrantable Condo Loan FAQs

How to determine if a condo is non-warrantable?

There are several reasons why a condo might be considered non-warrantable. There are certain guidelines set by Fannie Mae and Freddie Mac that determine warrantability. Conditions which might make a condo non-warrantable include:

  • The HOA or developer is involved in litigation
  • A high percentage of units are non-owner-occupied
  • The developer has not turned over management of HOA to the owners
  • The development is still under construction or is not yet completed
  • The community allows short-term rentals
  • More than 25% of the space is used commercially

 

How are Non-Warrantable Condo Loan Rates Set?

Rates adjust according to the individual characteristics of the loan and borrower profile. These include: loan-to-value ratio, down payment amount, credit score and history.

What Down Payment is Required for Non-Warrantable Condo Loans?

Downpayment requirements for non-warrantable condo loans should be at least 20%.

What is Investor Concentration in Non-Warrantable Condos?

Investor concentration refers to the amount of units in a condo development that are owned by investors. If one investor owns more than 20-25% of the units in a development, or if more than 50% of all the units are owned by investors as a whole–a condo project is more likely to be classified as non-warrantable.

Does Deephaven Offer a Non-Warrantable Condo HELOC loan product?

Yes.  Deephaven’s Equity Advantage HELOC program also covers non-warrantable condo products