Non-Warrantable Condo Loans in Austin, TX
- Condo
- Non-QM
- Primary, second home or investment (varies by program)
- Austin
You can fall in love with a unit and then learn the building “doesn’t qualify.” That’s common with downtown Austin and Rainey Street high-rises. It doesn’t always mean you can’t buy. It usually means you need a different kind of lender. This program is part of our non-QM loan options.
What makes a condo non-warrantable
In plain English, a project may not meet agency guidelines because of things like:
- Investor or rental concentration: a large share of units are rentals, including short-term rentals
- Litigation: the HOA is involved in a lawsuit
- Commercial space: a large share of the building is retail or office
- Ownership concentration: one owner holds many units
- HOA finances or insurance: budget, reserves or master insurance don’t meet the rules
A project’s status can change over time, so it has to be checked for each building when you apply.
Downtown Austin and Rainey Street
Many downtown and Rainey high-rises mix residences, rentals and commercial space, which can make a project non-warrantable. We don’t label any building ahead of time. We review the specific project with the lender when you’re under contract.
Uses
Depending on the program, non-warrantable condo loans can be used for a primary residence, a second home or an investment property. If you’re buying to rent, a DSCR loan may also fit, and self-employed buyers can compare bank statement loans. See all investment property loans.
Fits when
- You’re buying downtown or on Rainey
- The project failed condo review
- The building has a lot of short-term rentals
Look elsewhere when
- The project is warrantable. A conventional loan may fit.
Documents
- Condo questionnaire
- HOA budget
- Master insurance policy
- Purchase contract
Requirements vary by lender.
How CapFi shops it
Non-warrantable lenders differ on which project issues they’ll accept. I compare options across more than 50 wholesale lenders, and we can sign up an additional lender if your building needs one.
FAQs
What is a non-warrantable condo?
It’s a condo in a project that doesn’t meet Fannie Mae or Freddie Mac guidelines, often due to rental concentration, litigation or commercial space in the building. Some non-QM lenders still finance these units, with terms that vary by lender, and a project’s status has to be checked building by building.
Can I get a mortgage on a downtown Austin condo that isn’t warrantable?
Often, yes. CapFi Lending compares non-warrantable condo options across more than 50 wholesale lenders, matching the building’s specific issues to lenders that will consider them. Down payment and terms vary by lender and project, so we review the condo questionnaire and HOA documents before recommending one.
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Program availability, eligibility and terms are set by each lender and vary by lender and scenario. This is not a commitment to lend.
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