Condo Loan Warrantability Checker
Quickly check if a condo project is warrantable for FHA, VA, or Fannie Mae conventional financing. Tests owner-occupancy, single-entity ownership, HOA reserve funding, pending litigation, and master insurance — the five most common warrantability fails in 2026.
| FHA Test Results | |
| Fannie Mae Test Results |
What Warrantability Actually Means in 2026
A condo is "warrantable" when it meets the project-level eligibility rules of a specific guarantor — FHA, VA, Fannie Mae, or Freddie Mac. Warrantability is separate from individual borrower qualification — even if your credit and income are perfect, you cannot get a standard conforming loan on a non-warrantable condo. Lenders must verify project warrantability before underwriting, typically via an HOA questionnaire (Fannie Form 1076 or FHA Form HUD-9991) sent to the management company.
The most common reason a condo project fails warrantability in 2026 is the post-Surfside structural inspection rule — Fannie Mae and Freddie Mac now require evidence of recent structural inspections and adequate reserves for projects 5+ stories with deferred maintenance. The 2021 Surfside collapse drove these changes through temporary lender letters in 2021-2022, now permanently embedded in the Selling Guide (source: singlefamily.fanniemae.com).
The Five Critical Warrantability Tests
First, owner-occupancy: Fannie and FHA require at least 50% of units owner-occupied or sold to second-home buyers; investor concentration is the leading cause of failed approval. Second, single-entity ownership cap: no single individual or entity may own more than 10% of units for Fannie (25% for FHA). Third, commercial space cap: mixed-use buildings cannot exceed 35% non-residential floor area. Fourth, HOA reserves: budgets must allocate at least 10% to reserves for capital expenditures and replacement. Fifth, no pending major litigation: especially structural or safety-related claims trigger automatic ineligibility.
Two soft factors also matter: HOA dues delinquency over 15% of owners signals financial weakness, and master insurance must be in force with adequate replacement cost. Lenders verify all of this via the project questionnaire and recorded budgets. See our FHA vs conventional comparison for borrower-level qualifying differences.
Non-Warrantable Loans Exist — But They Cost More
If a condo fails warrantability, financing is not impossible — but rates and down payments are higher. Portfolio lenders (banks that keep loans on their own balance sheet rather than sell to Fannie/Freddie) offer "non-warrantable condo loans" with rates typically 0.5-1.5% above conventional, minimum 20-25% down payment, and tighter DTI/credit requirements. Common scenarios that drive borrowers to non-warrantable loans include high investor concentration projects (vacation rentals), litigation between HOA and developer, and projects in lease-up after conversion.
For VA borrowers, the VA Condo Approval list is the bright line: a project must appear on the official VA-approved condo list before any VA loan can close. If not listed, an HOA can apply for VA project approval, which typically takes 30-60 days. Run our DTI calculator alongside this checker to assess borrower-side qualifying.
FHA, VA, and Fannie Mae Differences in 2026
FHA single-unit approval (also called "spot approval") returned in late 2019 and remains active in 2026 — a single unit in a non-approved project can qualify under specific conditions including 10% owner-occupancy and 35% maximum commercial space. VA has no equivalent — the entire project must be VA-approved. Fannie Mae has a streamlined "Limited Review" for projects with low LTV (under 75-80%) that bypasses several full-review tests. Freddie Mac uses similar tiers. Always ask your lender which review path applies to your specific scenario — it can be the difference between approved and denied.
Last updated April 2026. Sources: Fannie Mae Selling Guide, FHA Condominium Approval, VA Condo Approval List.