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How We Helped a Buyer Close on a Non-Warrantable Condo Others Said Was Impossible

 

 

Not every dream condo comes in a Fannie Mae-approved package. Sometimes, the best opportunities are the ones that require creative thinking — and a lender who actually picks up the phone when things get complicated.

Here’s how we helped one Florida buyer close on a non-warrantable condo that three other lenders walked away from.

 The Property: Beachfront, Affordable, and… Problematic

Our client found a charming two-bedroom condo in a boutique building steps from the Gulf. It was priced below market — a rare find — and in a location perfect for occasional Airbnb use and weekend getaways.

But there was a catch. Actually, three:

• Over 50% of the units were investor-owned
• The HOA had low reserve funding
• Short-term rentals were allowed

All three meant the property was classified as non-warrantable — making it ineligible for traditional financing. The client’s bank and two other lenders quickly declined the file.

 The Solution: Know the Rules, Work the Angles

The client came to us through a referral from a real estate agent we’ve worked with before. They were frustrated and anxious, already under contract with a closing deadline fast approaching.

Here’s how we made it work:

• Portfolio Lender Match: We work with private and portfolio lenders who don’t sell loans to Fannie/Freddie. That means we can fund non-warrantable condos as long as the borrower qualifies and the risk is understood.
• Common-Sense Underwriting: Instead of focusing on blanket rules, our lender looked at the full picture — the client’s strong credit, low debt-to-income ratio, and solid reserves.
• Clear Communication with the HOA: We worked directly with the association to get updated financials and a letter explaining the building’s long-term plans to boost reserves. That transparency made all the difference.

 The Terms

The client closed on time, moved in with no surprises, and already has bookings lined up for summer weekends.

 Takeaway

Most lenders say “no” to non-warrantable condos because they don’t understand them — or simply aren’t allowed to touch them. But that doesn’t mean the deal’s dead.

If you’re an agent or buyer dealing with a condo that traditional banks won’t touch, let’s talk. We’ll tell you exactly what’s possible — and what it’ll take to close.