A condo purchase has two files, not one: yours, and the building's. Plenty of qualified buyers lose deals because the lender couldn't clear the project — owner-occupancy, reserves, litigation, a single investor owning too many units. I check the building early, before your offer is on the table.
Program guidelines on this page last verified . Guidelines, limits and program terms change — verified figures are current as of that date, not a commitment to lend.
Your credit is fine. Your income is fine. The building has an open lawsuit, or 62% of the units are rentals, or the reserve fund is thin. These are the failure points, and they're all knowable in advance.
Most conventional programs want at least half the units owner-occupied or second homes. Investor-heavy buildings need a different lender.
The HOA budget should put roughly 10% a year into reserves. Thin reserves are one of the most common warrantability failures.
No more than about 15% of units more than 60 days behind on common charges. Above that, a non-warrantable program.
Structural or safety litigation against the association can fail the whole project — even for a buyer with 40% down.
“Warrantable” means Fannie Mae or Freddie Mac will buy a loan in that building. Warrantable gets you the best rate and the lowest down payment. Non-warrantable isn't a dead end — it's a different lender, more down, and a slightly higher rate.
The lender sends the association a project questionnaire — occupancy, delinquencies, reserves, litigation, insurance, single-entity ownership.
Reserve contribution, pending special assessments, and any deferred-maintenance or structural-repair plan on the books.
Litigation, commercial space over roughly 35%, one owner holding too many units, short-term-rental operations in the building.
Warrantable → conventional, best pricing. Non-warrantable → a portfolio or non-QM program built for it, usually 20–25% down.
From downtown Albany to Saratoga and Clifton Park, condo stock is a real slice of the market — and it underwrites differently.
A condo is often the cheapest way into the Capital Region. Lower price per foot, lower closing costs, less to maintain.
The building failed the questionnaire. There's still a loan — portfolio and non-QM programs write these every week.
Newly converted or still-selling projects often can't hit occupancy thresholds yet. Needs a lender who handles pre-sale.
Condos are investor-friendly, but the project still has to allow it. Check before you write the offer — see DSCR.
A condo as a second home or a right-sized landing spot is financeable, but occupancy math and project rules both matter.
Lake George and Gore-area projects get a closer warrantability look — rental ratios and reserves both come up.
Typical guardrails by property type. Every building is its own underwrite — send me the address and I'll tell you where it lands.
| Guideline | Warrantable condo | Non-warrantable condo |
|---|---|---|
| Minimum down | 3% first-time buyer · 5% conventional · 3.5% FHA if approved | 20–25% typical |
| Minimum FICO | 620 conventional · 580 FHA | 660–700 typical |
| Max DTI | To 50% with automated approval | 43–50% depending on the program |
| Reserves | 0–2 months | 6–12 months PITI common |
| Owner-occupancy | 50%+ for investment purchases · no minimum for primary on many files | Reviewed case-by-case |
| Loan amount | To conforming, high-balance, or jumbo | To $3M on select portfolio programs |
| Occupancy | Primary, second home, investment | Primary, second home, investment · project rules apply |
| Extra docs | Project questionnaire, budget, master insurance | Above, plus reserve study or engineer’s report on some files |
| Timeline | 30–45 days | 35–50 days — project review drives the calendar |
Condos are where mortgages go to die, and almost always because of the building rather than the buyer. Knowing which situations don't work saves you an appraisal fee and a month.
FHA and VA lend only on approved projects. If the building isn’t on the list — and most Capital Region buildings aren’t — those programs are unavailable regardless of your file.
Conventional loans →Portfolio programs →Structural or safety litigation stops agency lending cold. Minor slip-and-fall suits are sometimes tolerated; construction-defect claims almost never are.
Portfolio programs →Fannie and Freddie want a majority of units owner-occupied, especially for an investment purchase. A building that has turned into mostly rentals fails the review.
DSCR loans →Conventional requires at least 10% of the HOA budget going to reserves. A building running lean — or one with a special assessment underway — won’t pass.
Portfolio programs →Mixed-use buildings with substantial retail or office square footage exceed agency limits. Great building, wrong loan program.
Portfolio programs →Your income is documented normally here — the extra scrutiny lands on the building. The one income wrinkle worth knowing is how the HOA or maintenance charge hits your ratios.
The full common charge counts against your ratios, and on a project with a pending assessment the underwriter will want the association’s paperwork before clearing the file.
Nearly every one of these is a building problem discovered too late. Ordering the right documents in week one is the whole game.
Litigation, insufficient reserves, high investor concentration, or a special assessment. Every answer on that form is a potential decline, and it usually arrives in underwriting.
I order the questionnaire and the budget the day you identify the unit, not at underwriting. If the project fails agency review, we pivot to a portfolio investor on the same timeline.
The buyer is pre-approved for FHA, finds a condo, and discovers weeks later that the project was never approved or its approval lapsed.
I check the HUD and VA approval lists before you write the offer. If it's not approved, I tell you which programs will work in that building instead.
The HOA's policy lacks required walls-in coverage, has too high a deductible, or is missing fidelity coverage. Lender requirements on this have tightened significantly.
I review the master policy early and tell the HOA exactly what the lender needs. Most of the time the association can get an endorsement — if we ask in week one instead of week five.
Few comparable sales in the building, or a value the lender questions. Small buildings with little turnover are especially hard.
I get comps and building data to the appraiser with the order, and I use lenders who review projects every week rather than one learning on your file.
Post-Surfside scrutiny means structural inspection reports and deferred-maintenance findings can stop a loan in a building that has financed fine for years.
I ask for the reserve study and any inspection reports up front. If there's a structural finding, we know which investors will still lend and on what terms.
Already been denied somewhere else? Read what happened when other buyers brought me a dead file →
Non-warrantable means Fannie Mae and Freddie Mac won't buy a loan in that building — usually because of low owner-occupancy, thin reserves, pending litigation, too much commercial space, or one entity owning too many units. You can absolutely still buy. It moves to a portfolio or non-QM program, typically with 20–25% down and a modestly higher rate.
Yes — if the project is on HUD’s FHA-approved list, or the unit qualifies under single-unit approval. Most Capital Region projects are not on the list, so this is worth checking before you write an offer rather than after.
Licensed across New York State — with deep roots in Albany and the Capital Region.
Don't see your town? Reach out — or see every Capital Region town.
Brian Marchand · Sr. Loan Consultant, New American Funding · NMLS #481563
Works on condo financing for buyers and homeowners in Albany, NY and the Capital Region. Licensed in New York State. New American Funding, NMLS #6606 · 18 Computer Dr E, Suite 103, Albany, NY 12205.