Understanding Closing Costs
In today’s fluctuating economy, Canadian homeowners are increasingly looking at refinancing their mortgages
This Page’s Content Was Last Updated: April 2026
This Page’s Mortgage Rates Were Last Updated: April 16, 2026 6:27 PM ET
Not all condominium properties qualify for standard conventional financing, and understanding this distinction is critical when purchasing a condo. A non-warrantable condo refers to a condominium project that does not meet Fannie Mae or Freddie Mac lending guidelines, which are the standards most traditional lenders follow when approving conventional mortgages.
A project may be deemed non-warrantable for several reasons, such as a high percentage of investor-owned units, ongoing litigation involving the association, inadequate insurance coverage, financial instability within the condo corporation, or insufficient reserve funds for future repairs. When a property falls outside of agency guidelines, many banks and conventional lenders will decline the loan altogether.
However, financing options still exist. Simply Approved Mortgages helps buyers secure funding for both warrantable and non-warrantable condo properties by leveraging alternative lending solutions, ensuring clients can move forward with their purchase even when traditional financing is not available.
A non-warrantable condo does not meet Fannie Mae or Freddie Mac guidelines and requires specialized financing options.
A condo may be considered non-warrantable if it has:
High investor ownership
Ongoing litigation
Insufficient HOA reserves
Significant commercial space
Short-term rental activity
Condo hotel structure
Recent structural or safety concerns
Each lender evaluates project risk differently.
Disclaimer: Advertised rates and fees depend on borrower qualifications and market fluctuations.
Condo approval involves more than borrower qualification.
Lenders evaluate:
HOA financial stability
Insurance coverage
Owner-occupancy ratio
Pending lawsuits
Reserve studies
If the project fails agency guidelines, it becomes non-warrantable
At Simply Approved Mortgages, our mission is to make homeownership more accessible and affordable. We operate on a lender-paid compensation model, with average compensation of approximately 1.5%, which is generally lower than typical industry ranges. This structure may help reduce certain costs embedded in mortgage transactions, while allowing us to maintain a strong focus on transparency, responsible loan structuring, and service quality.
Disclaimer: Simply Approved Mortgages complies with all state and federal licensing requirements that we are licensed in.
Even if a condo is non-warrantable, financing may still be possible.
Common options include:
Flexible underwriting
Higher down payment requirements
Alternative documentation options
Learn More: 👉 Non-QM Loans
Held by lender
Custom underwriting
May allow unique condo situations
If the condo is primarily rental:
Qualification based on rental income
Not based on personal income
Learn More: 👉 DSCR Loans
Non-warrantable condos typically require:
15%–25% down (sometimes higher)
Stronger credit profile
Additional reserves
Rates may be slightly higher than standard conventional loans.
Non-warrantable condos are common in:
Resort areas
Short-term rental markets
Urban high-rise buildings
Condo hotels
Florida coastal markets
Colorado mountain communities
Non-warrantable condos are common in:
Resort areas
Short-term rental markets
Urban high-rise buildings
Condo hotels
Florida coastal markets
Colorado mountain communities
Learn More: 👉 Florida Condo Page
Learn More: 👉 Colorado Condo Page
Financing may be more complex due to:
Stricter underwriting
Longer review times
HOA documentation requirements
Insurance verification
Working with a lender familiar with condo underwriting is critical.
Use these tools before applying:
Learn More: 👉 Mortgage Calculator
Learn More: 👉 Home Affordability Calculator
For federal housing guidance and buyer protections, review:
We operate on a lender-paid compensation model, with average compensation of approximately 1.5%, generally lower than typical industry ranges. This approach may support affordability while providing access to competitive mortgage options.
Our team of seasoned professionals is dedicated to simplifying the mortgage process, providing personalized solutions, and ensuring you feel confident every step of the way.
We prioritize honesty and clarity. From disclosing every detail upfront to ensuring no hidden surprises, we build trust through our commitment to your financial success.
At Simply Approved Mortgages, our mission is to make homeownership more accessible and affordable. We operate on a lender-paid compensation model, with average compensation of approximately 1.5%, which is generally lower than typical industry ranges. This structure may help reduce certain costs embedded in mortgage transactions, while allowing us to maintain a strong focus on transparency, responsible loan structuring, and service quality.
We provide access to competitive mortgage options across a variety of loan programs and terms. Our approach focuses on responsible loan structuring based on lender guidelines and borrower qualifications. Explore our mortgage solutions to better understand your available options and how they may support your homeownership goals.
Getting pre-approved for a mortgage is easy with our online application process. Fill out our secure application form, and our team will review your details quickly, so you can start your mortgage journey with confidence.
Once your application is received, a dedicated mortgage specialist will contact you to discuss your needs and preferences. We’ll work together to find the best mortgage options that align with your goals.
After reviewing and selecting the ideal mortgage plan, we’ll guide you through the approval process and ensure everything is in place for a smooth closing. Soon, you’ll be ready to move into your new home!
Prefer personal guidance? A licensed loan officer is available to help.
Yes, but you may need Non-QM or portfolio financing.
Common reasons include litigation, high investor ownership, or inadequate reserves.
Often yes, compared to standard conventional loans.
Rates are typically slightly higher due to increased project risk.
Take control of your home-Take the guesswork out of your home-buying journey. Use our Mortgage Calculator to estimate your monthly payments and make informed financial decisions.
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Simply input your details and see how much equity you could access today. If you have questions or need assistance, our team is here to guide you every step of the way.
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In today’s fluctuating economy, Canadian homeowners are increasingly looking at refinancing their mortgages
In today’s fluctuating economy, Canadian homeowners are increasingly looking at refinancing their mortgages
In today’s fluctuating economy, Canadian homeowners are increasingly looking at refinancing their mortgages
Reduce your monthly payment or loan term while unlocking the full potential of your home’s equity!