Financing & underwriting
Your condo loan got flagged "non-warrantable." Here's what that actually means.
Since August 2026, Fannie Mae and Freddie Mac retired the faster Limited and Streamlined condo reviews for most larger buildings. A project with more than 10 units now generally goes through a Full Review of its reserves, insurance, and litigation before a conventional loan can close. A building that fails that review is "non-warrantable" — it hasn't become unsafe, it's failed an underwriting bar.
What trips a full review
Lenders are checking for the same handful of things: reserves funded below the required share of the budget, a high share of owners delinquent on dues, one entity or investor owning too large a share of units, heavy commercial or short-term-rental use, active or pending structural litigation, and a master insurance deductible above the agency cap. Any one of these can flip a building from warrantable to not.
What changes if your building is non-warrantable
Conventional agency financing is off the table. Buyers move to non-QM or portfolio lenders instead, usually with a larger down payment and a higher rate. It's a financing outcome, not a verdict on whether the building is sound — and it's often driven by the exact reserve numbers a SIRS, reserve study, or recent financial statement already shows plainly.
Where the answer already lives
Before a lender's full review even runs, the documents your seller or association already gave you — the SIRS, reserve study, budget, recent financials — usually contain the same gap that would trip the review: underfunded reserves, a looming assessment, a building playing catch-up on repairs. Send us what you have. We'll check free whether there's enough there to calculate your unit's likely five-year exposure. If there is, the full report is $49.
Want to see what the lender's own form checks? Form 1076, explained → Want the reserve math itself? What's actually in a SIRS →