Refinancing a non-warrantable condo in Florida can unlock lower payments or cash-out equity, but it requires navigating outside traditional Fannie Mae and Freddie Mac channels. Because the condo project does not meet conventional guidelines – perhaps due to high investor concentration, short-term rentals, or pending litigation – lenders treat it as higher-risk. We will evaluate the condo project’s overall financial health. This will entail the non-warrantable condo’s budget, rules and regulations, master insurance policies, and a condo questionnaire to ensure the building’s fundamentals are solid.
A non-warrantable condo refers to a condominium unit or project that does not meet the eligibility criteria set by government-backed entities like Fannie Mae and Freddie Mac. This can make it difficult to obtain a mortgage for the property as many lenders view it as high risk. The reasons for a condo to be considered non-warrantable can include:
- New Construction
- Lack of control over the HOA by the owners
- Master Insurance Policy underinsured
- Low HOA Reserves
- High percentage of non-owner occupied units
- Allowing short-term rentals
- A single entity owning more than 10% of units
- Any ongoing litigation involving the building owner or developer
Florida Non-Warrantable Condo Mortgage Refinance Loan Highlights:
- Rate Term Refinance up to 75% Loan to Value
- Cash-out Refinance up to 70% Loan to Value
- Available for Primary, Secondary or Investment Properties
- Loan amounts up to $6 Million
- Minimum FICO 660
- DTI up to 50% with compensating factors
- ARM and 30 Year-Fixed Options available
- Unit must have a kitchenette/kitchen with a full stove with an oven
- Homeowners Association must not limit the days the unit can be accessed
- Homeowners Association must have an acceptable reserves account
- Homeowners Association must not have any structural litigation in process
- Condotel properties available
- $200,000 minimum loan amount
- Can close in the name of the LLC/Corp on request
Not allowed:
- Structural deficiencies and certain pending litigation
- Incomplete construction of the subject phase
- Units without a stove top and oven – must have both
- Homeowners Association with $0 reserves
- Homeowners Association limits the number of days the property can be accessed
Approved/Evaluated Case-by-Case:
- Low HOA budget reserves – HOA delinquencies exceeding 15%
- Condos with less than 500 square feet allowed at a max 70% LTV
- Condos with kitchenettes [ including full stove top and oven ] allowed on a case-by-case basis
The Debt Service Coverage Ratio is a ratio of a property’s annual net operating income and its annual mortgage debt, including principal and interest. Lenders use DSCR to analyze how much of a loan can be supported by the income coming from the property as well as to determine how much income coverage there will be at a specific loan amount.
What Are the Requirements?
- Minimum credit score 660
- Must be an Investment Property
- Rate & term Refinance up to 75% Loan to Value under 3 stories
- Cash-out Refinance up to 7o% Loan to Value under 3 stories
- Minimum Debt Service Coverage Ratio of 1%
- Long-term and short-term rental income accepted
Self-Employed and Business Owners, as well as those who earn seasonal income, are finally starting to have access to excellent mortgage options. This includes mortgage products that do not require you to submit any Tax Returns, W2’s or Pay Stubs, but rather allow you to use bank statements to verify your income instead.
- 12 or 24 Months Personal Bank Statement Available [ use 100% of Deposits ]
- 12 or 24 Months Business Bank Statement Available [ Monthly net income from the deposits after deducting a 15% expense factor (or one that is reasonable for the line of work) from the total usable deposits ]
- Rate & Term Refinance up to 75% Loan to Value
- Cash-out Refinance up to 70% Loan to Value
- Minimum FICO 680
- DTI up to 50% with compensating factors
- ARM and 30 Year-Fixed Options available
- Purchase options available
- Condotel properties available
- $200,000 minimum loan amount
When your ready to get started on your Florida Non-Warrantable Condo Mortgage, we are experts to guide you through the entire process, the first step is getting you pre-approved. You can apply online or you prefer to speak with one of our Non-Warrantable Condo Mortgage Experts, we would be happy to speak with you. Call or text us at 407-955-4575.