Warrantable Condominium Loans

From Gulf Coast Bank & Trust Company with Locations Across Metro New Orleans & Baton Rouge

Gulf Coast Bank & Trust offers home loan programs for warrantable condominiums. Contact our lenders across metro New Orleans, Baton Rouge and the Northshore to learn more about loans offered for warrantable condos. 

The Benefits of Purchasing a Condominium

Condos are a great option for many homeowners. Whether you’re a first-time homebuyer, someone looking to downsize to a smaller home with less maintenance, or considering purchasing a second home or investment, condos present many opportunities.

It’s important to understand that the type of home loan you may qualify for when purchasing a condominium may vary depending on the type of building, percentage of owner occupancy within the complex, the financial stability of the homeowners as well as other important factors.

Generally speaking, condos fall into two categories from a lending standpoint: warrantable and non-warrantable.

What is a Warrantable Condominium?

Put simply, a warrantable condominium is one that is approved by Fannie Mae and Freddie Mac, as well as condos that are eligible for government-guaranteed financing, such as the Federal Housing Association (FHA) and the Department of Veteran Affairs (VA).

Some additional/Other characteristics that make a condominium warrantable are:

  • No single entity owns more than 10% of the units in a project, including the developer
  • At least 51% of the units are owner-occupied
  • Fewer than 15% of the units are in arrears (60 days or more) with their association dues
  • There is no litigation in which the homeowner’s association (HOA) is named
  • Commercial space account for 25 percent or less of the total building square footage

How Does a Warrantable Condo Different from a Non-Warrantable One?

Unlike warrantable condos, non-warrantable condos are not eligible to be sold by Fannie Mae and Freddie Mac, and for this reason, mortgage financing for non-warrantable condos fall under different lending guidelines and may have different requirements.

Solutions for the Warrantable Condo

Warrantable condos can be an excellent option for borrowers looking to buy a condo. However, it's important to know which loan options are available before you start shopping for a warrantable condo.

Here are some of the most popular loan options:

Conventional Loans

Conventional mortgage loans are also known as a Fannie Mae or Freddie Mac loans. The guidelines and credit requirements are established by either Fannie Mae or Freddie Mac. As such, the credit requirements for this program type are a bit more stringent than a government loan.

Some of the requirements for conventional loans include a down payment of at least 3%, income that can be verified through independent sources, such as two years of W-2 forms and tax returns, and the condo must meet property guidelines.

Learn More About Conventional Loans

FHA Loans

FHA loans were created and endorsed by the Federal Housing Administration and are often good choices for those who wish to keep their down payment to a minimum, first–time homebuyers, or individuals with credit challenges.

Some of the requirements for FHA loans include  a down payment of 3.5%, the condo must be used as your primary residence, and the condo must meet the FHA’s minimum property guidelines.

See More About Our FHA Loans

VA Loans

The Department of Veterans Affairs endorses VA mortgages, and they are designed for veterans, service members, and some surviving spouses.

Find Out More About VA Loans

Warrantable condos can be an excellent option for borrowers looking to buy a condo, but it is also a big decision to purchase one. That's why Gulf Coast Bank Home Loans is here to help.

We have branches throughout metro New Orleans and Baton Rouge, as well as the Northshore, and our team of experienced lenders is ready to help you find the right loan for your needs.

To get started, contact a lender, or visit a branch location near you.

***This is not an approval for credit. Normal credit qualifications and other terms and conditions apply. Subject to underwriting approval. Program, qualifications, terms & conditions are subject to change without notice. Please speak to a lender for complete details.***