For condo buyers
Told the condo you want "doesn't qualify"? That is usually a verdict on the building, not on you. Samantha finds out why, then looks for a lender that works with that reason.
The short answer
A condo is non-warrantable when its project does not meet Fannie Mae or Freddie Mac standards, so a loan on a unit there cannot be sold to them. That does not make it unfinanceable. Some lenders keep these loans on their own books, as portfolio or non-QM loans, and set their own terms. Align places non-warrantable condo loans through multiple wholesale lenders, and the reason the project failed decides which ones fit.
How it works
What makes a project non-warrantable. Fannie Mae's Selling Guide is the clearest published example. These are its rules, not Align's terms:
What a lender reviews. The building is underwritten next to you: the condo questionnaire (Fannie Mae's version is Form 1076), budget, financial statements, reserves, master insurance, delinquencies, special assessments, litigation, the master deed and bylaws, and inspection reports.
Where a portfolio lender comes in. A lender that keeps the loan sets its own rules. One may accept commercial space above the agency limit and decline any pending lawsuit; another may do the reverse. Down payment, reserves and pricing vary by lender. On a consumer mortgage, the lender must still make a reasonable, good faith determination that you can repay.
Before you apply
For you: pay stubs and W-2s, or tax returns or bank statements if you are self-employed; recent asset statements; the listing and purchase agreement.
Ask the HOA or management company:
Know the tradeoffs
In Michigan
Working with Align
"First, don't panic. And don't start doing random things you read online. Let's look at the actual situation." Send me the condo questionnaire and the reason you were given, and I'll take your file to the wholesale lenders that work with that kind of project. If the problem is close to being fixed, I'll tell you whether waiting makes more sense than a portfolio loan today.
Official sources
Program rules change. These are the official pages this page was checked against.
If yours is not here, ask it on the call. There are no dumb questions.
It means the condo project does not meet Fannie Mae or Freddie Mac standards, so a loan on a unit there cannot be sold to them. The label is about the building, not your credit, which is why a strong borrower can still hear no. Ask for the specific reason in writing. A lender that keeps the loan on its own books may still finance the unit, on its own terms.
Sometimes. Both programs have options for condos, though their project rules can be stricter. FHA keeps its own list of approved condo projects, searchable on HUD's website, and its own rules for units in projects that are not on it. VA keeps its own list of approved condo projects too. A project that fails Fannie Mae's review may or may not pass FHA's or VA's, so check each before you choose a program.
There is no universal figure. Each portfolio or non-QM lender sets its own down payment, reserve and credit requirements, and they shift with the project's problem and with your file. Expect it to differ from an agency loan, and ask every lender for its terms in writing. Samantha compares what more than one lender asks for your building.
Yes, when the cause is fixed: a lawsuit settles, reserves are funded, an investor sells units, or a new project reaches its presales. If the fix is close, ask the association for a timeline. Waiting may open agency financing. Buying now may mean a portfolio loan, and refinancing later depends on the project and your situation at that time.
It can. The questionnaire is an extra step on a condo purchase: the association fills it out, often for a fee, and how long it takes depends on the association. Ask your agent to request the questionnaire, budget and reserve figures as early as possible, and make sure your purchase agreement allows time for the project review, not only for your own approval.
Align Lending helped make purchasing my home in Madison Heights a smooth experience. I appreciated the regular updates and clear explanations along the way.
I highly recommend Align Lending to anyone looking for a mortgage broker in Southeast Michigan. The team was knowledgeable, responsive, and easy to work with.
As a first-time homebuyer in Ferndale, I was unsure of some things. Samantha was awesome. She was extremely helpful and made sure I understood every part of the process.
Samantha was extremely helpful during my home loan process in Novi. Communication was quick, the instructions were clear, and everything stayed on track through closing.
Want to shout out Samantha for the expert guidance, made my first-time homebuyer experience seamless! It exceeded expectations and was a stress free process throughout. Grateful for all your help and loving my new home in Bloomfield Hills!
Samantha Shelton was absolutely amazing! She far exceeded any expectations we had. Samantha was our biggest cheerleader throughout the entire home buying process! It literally felt like my best friend was helping us navigate and cheering us on from start to finish. I would recommend her and the team to anyone; you will be in THE best hands. She is so knowledgeable and kind. This was the best, easiest and least stressful mortgage process ever.
Individual experiences. Results vary.
Tell Samantha what you are trying to do, and she will tell you what actually matters in your situation. If the answer is that you should wait, she will say that too.
Not what product you want. What you are actually trying to accomplish.
A licensed Align loan officer works out what matters most for you specifically.
Your options, the tradeoffs, and your next step. No obligation to go further.
Align Lending LLC, NMLS #2041154, is a mortgage broker. Samantha Shelton, NMLS 1647301. Equal Housing Opportunity. Licensed in Michigan, Ohio, North Carolina, Florida, Louisiana and Texas. Program guidelines on this page are general and change over time, and terms vary by lender; they are not a credit decision, a preapproval, a commitment to lend, or an offer of credit. Approval depends on your full application, the property and the lender's current guidelines.
Condo flagged as non-warrantable? Send me the questionnaire and I'll look for a fit.
Samantha Shelton · Broker Owner · NMLS 1647301
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Texts go to Samantha at (248) 506-5727. 7 days a week, evenings included.