specialty
Non-Warrantable Condo Financing in Texas
Financing for Texas condos that don't meet conventional agency guidelines — from downtown Austin high-rises to mixed-use buildings and newly converted projects.
Eligibility
- Purchase, rate-and-term refinance, and cash-out refinance options
- Primary residence, second home, and investment property occupancy, per investor guidelines
- Full documentation underwriting with income and asset verification
- Condo project review required — HOA financials, insurance, and eligibility
- Credit score, debt-to-income, and reserve requirements set by program guidelines
Key benefits
- Financing for condos that don't qualify for conventional agency loans
- Fixed-rate and adjustable-rate (ARM) options
- Broader project eligibility — mixed-use buildings, new conversions, investor-heavy projects
- Gift funds permitted on eligible transactions
- Purchase and refinance solutions for unique Texas condo projects
What does "non-warrantable" mean?
When you apply for a conventional condo loan, the lender doesn't just review you — it reviews the building. If the project meets agency standards, it's "warrantable" and eligible for standard conventional financing. If it doesn't, it's non-warrantable, and most lenders will simply decline the file no matter how strong your credit and income are.
That surprises a lot of Austin buyers. You find the right unit in a downtown high-rise or a converted building on the east side, your finances are in great shape, and then the deal stalls — not because of you, but because of the building.
Why buildings fail agency review
A condo project can be flagged non-warrantable for reasons that have nothing to do with your unit, including:
- Too much commercial or mixed-use space — common in Austin's newer live-work-shop towers
- A single entity owning more units than agency limits allow
- A high concentration of investor-owned units
- Pending litigation involving the HOA or developer
- A project that's newly converted, still under construction, or not fully sold out
- Low owner occupancy
- Deferred maintenance flagged during project review
- Condotels or other non-traditional project types
New construction and fresh condo conversions trip these rules constantly — a building can be non-warrantable simply because it hasn't sold enough units yet.
How our non-warrantable condo program works
Barton Creek Lending Group offers financing designed specifically for these situations. The program supports purchases, rate-and-term refinances, and cash-out refinances (subject to maximum loan-to-value limits), for primary residences, second homes, and — where the program permits — investment properties, per investor guidelines.
Loan features include fixed-rate and adjustable-rate (ARM) options, loan amounts up to program limits, gift funds on eligible transactions, and available escrow accounts. Mortgage insurance requirements depend on loan-to-value and investor guidelines.
Underwriting is full documentation: income and asset verification, an appraisal by an approved appraiser, and a thorough project review. Expect the standard paperwork — loan application, pay stubs or tax returns, asset statements, purchase contract, and title commitment — plus condo-specific items like the condominium questionnaire, HOA budget and financials, and the master insurance policy. Borrower requirements — minimum credit score, debt-to-income ratio, and liquid reserves — are set by the program and vary with occupancy type and loan amount.
What to keep in mind
We'll be straight with you about the trade-offs. Interest rates on non-warrantable condo loans are typically higher than agency-conforming loans. Down payment and reserve requirements are generally more stringent, and the project documentation is more comprehensive. Not every non-warrantable project is eligible — all projects are subject to investor review and approval, and final approval depends on both your qualifications and the building's review.
Who it's for
Buyers and owners of units in projects that don't meet conventional agency standards but remain financially stable and marketable — think downtown Austin high-rises with heavy retail space, mixed-use developments, newer buildings still in their sell-out phase, and recently converted projects across Texas. If a building has stopped your purchase or refinance in its tracks, reach out and see what you may qualify for.
Program guidelines are subject to change without notice. Loan approval is contingent upon borrower qualification, satisfactory property appraisal, condominium project review, and investor eligibility requirements. Not all borrowers or properties will qualify. Additional restrictions may apply.
Frequently asked
- What makes a condo non-warrantable?
- A condo is non-warrantable when the building — not the buyer — fails conventional agency project standards. Common triggers include too much commercial or mixed-use space, one entity owning too many units, a high share of investor-owned units, pending litigation, low occupancy, or a project that's newly converted or still incomplete. The unit itself can be perfectly sound; it's the project review that doesn't pass.
- Can I get a mortgage on a non-warrantable condo in Texas?
- Yes, in many cases. Barton Creek Lending Group offers a non-warrantable condominium program for Texas buyers and owners, covering purchases, rate-and-term refinances, and cash-out refinances, subject to investor guidelines. Every project still goes through a lender review, so approval depends on both your qualifications and the building's financial health.
- Are rates higher on non-warrantable condos?
- Generally, yes. Because the project carries more risk than an agency-approved building, interest rates on non-warrantable condo loans are typically higher than conventional conforming rates, and down payment and reserve requirements are usually more stringent. Actual terms vary by program, occupancy, and your overall qualifications.
- How do I find out if my condo building is warrantable?
- The building's HOA completes a condominium questionnaire, and the lender reviews it along with the HOA budget, financial statements, and master insurance policy. That review determines whether the project meets agency standards or needs a non-warrantable program. We can help you request the questionnaire and read the results before you commit to anything.
- What down payment do I need for a non-warrantable condo?
- Down payment requirements are generally higher than on a comparable agency-eligible condo, and they vary by occupancy type, loan amount, and investor guidelines. Reserve requirements — the savings you keep after closing — may also exceed conventional standards. We'll walk you through the specific numbers for your situation during pre-qualification.