Financing a condo depends on the building, not just you. A “warrantable” condo meets Fannie Mae and Freddie Mac standards for the whole project (finances, owner-occupancy, insurance, litigation), so it qualifies for standard conventional loans. Non-warrantable condos need specialty loans with larger down payments and higher rates. FHA and VA require the project to be approved, or a single-unit approval for FHA.
What lenders check about the building
- HOA finances: an adequate budget and reserves; lenders often look for at least about 10% of the budget going to reserves.
- Delinquencies: not too many owners behind on dues.
- Ownership concentration: no single investor owning too many units.
- Commercial space: limits on how much of the building is non-residential.
- Litigation: lawsuits involving the HOA, especially over construction defects.
- Insurance: adequate master policy coverage.
- Structural safety: since 2022, buildings with critical repairs or unsafe conditions don’t qualify until they’re fixed.
Warrantable vs. non-warrantable
| Warrantable | Non-warrantable | |
|---|---|---|
| Loan types | Conventional, and FHA/VA if approved | Portfolio or non-QM loans |
| Down payment | From 3% | Often 10% to 25% |
| Rate | Standard, plus a small condo adjustment in some cases | Higher |
Before you offer
Ask your lender to review the building early, using the HOA questionnaire. Read the HOA budget, reserve study, meeting minutes and rules; watch for planned special assessments. An HOA document contingency gives you time; see the contingency risk explainer.
Try it: Mortgage payment calculatorInclude HOA dues in your monthly payment; they count in your debt-to-income ratio.HOA dues affect what you can borrow
Lenders count HOA dues as part of your housing payment. $400 a month in dues reduces your buying power by roughly $55,000 to $65,000 at today’s rates. Check with the affordability calculator. Insurance is usually lower for condos, since the master policy covers the structure; you’ll need an “HO-6” policy for the interior.
Common questions
What is a warrantable condo?
One in a project that meets Fannie Mae and Freddie Mac standards, so it qualifies for standard conventional financing.
Can I get an FHA loan on any condo?
The project must be FHA-approved, or the unit must get a single-unit approval.
Do HOA dues affect how much I can borrow?
Yes. Lenders count them as part of your monthly housing payment.
Updated October 2026. Educational content. OfferBacked is not currently a lender and doesn’t issue pre-approvals or loans.