Fidelity Home Group are mortgage experts in offering non-warrantable condo loans in Florida. In Florida, it can be difficult to find a non-warrantable mortgage expert since non-warrantable condos are not available through most mortgage lenders.
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
- 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
Non-Warrantable Condo Mortgage Program Highlights:
- Max 80% LTV [ 20% down payment ] 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
- Purchase, Rate Term refi, Cash-out refi and Debt Consolidation 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
- Non-warrantable condominiums including condotel properties
- $200,000 minimum loan amount.
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
- Minimum down payment of 30% for Non-Warrantable Condos
- Minimum Debt Service Coverage Ratio of 1%
Currently, the non-warrantable condo purchase market in South Beach, Panama City, Palm Beach and Miami is trending upward with the economy. Several other Florida cities are in prime season for buying. Take advantage of the market and discuss financing for your Florida non-warrantable condo with Fidelity Home Group headquartered in Orlando, Florida!
Fidelity Home Group has experienced mortgage experts who are experts in the field of Non-Warrantable Condo loans. We offer top tier technology, competitive interest rates, and a commitment to help you achieve your dream of homeownership. We can be contacted several ways to help answer any questions you may have:
Call us at toll free at 888-259-2257
Text us at 407-955-4575