What is a warrantable condo?
A warrantable condo is a project that meets Fannie Mae or Freddie Mac project-level rules — making the loan eligible for sale to those agencies. Non-warrantable condos fail one or more of those rules, requiring portfolio or non-QM financing (often at higher rate and down payment).
Plain-English explanation
Warrantability rules cover: minimum owner-occupancy ratio (typically 50%+), single-entity ownership concentration limits (no single owner with too many units), adequate insurance (Florida law has tightened this), funded reserves, no major litigation, no excessive commercial space. Failing any of these makes the project non-warrantable. Some lenders specialize in non-warrantable condo lending — pricing is materially higher and down payment minimums are bigger. Subject to Fannie/Freddie project rules.
What can change the answer?
Project FHA/conventional warrantability, owner-occupancy ratio, project insurance and reserves, litigation, and Florida 2022+ condo law can change the answer.
Want the real answer for your conventional file?
Conventional guidelines are the rule. Your credit, income, DTI, PMI, LLPAs, and Florida payment math are what decide the actual answer.
More conventional questions on Condos
Educational only. Conventional loan guidelines, lender overlays, rates, fees, PMI, LLPAs, and underwriting requirements can change. Final eligibility depends on full underwriting review.