Condo guidelines
Why your condo got denied, and how warrantability works
July 30, 2026 · 6 min read
Owner-occupancy ratios, reserve requirements, and litigation. The HOA questionnaire decides more than your credit score does.
The building gets underwritten too
With a condo, there are two approvals happening. You are one of them. The project itself is the other. A borrower with excellent credit can still be declined because of something happening at the homeowners association level.
Lenders call a project warrantable when it meets agency guidelines. When it does not, the loan has to move to a portfolio or non warrantable product, which usually means a different down payment and different pricing.
What underwriters look at
Owner occupancy share, since a building full of short term rentals carries different risk. Reserve funding, where many guidelines want at least 10 percent of the annual budget set aside. Delinquent dues among owners. Active litigation involving the association. Single entity ownership, meaning one investor holding too many units. Commercial space share in mixed use buildings.
All of this comes back on the HOA questionnaire and the association budget. That is why we request those documents early rather than a week before closing.
How to protect your timeline
Ask for the association budget, reserve study, and any litigation disclosure before you go under contract if you can. Tell your agent the lender will need the questionnaire completed, and find out who handles it and how long they take.
If a project turns out to be non warrantable, that is not the end. Being a broker means we can shop banks that specialize in these buildings instead of telling you no.
Have a question about your own numbers?
Call or text us at 720-386-4071, or start your pre-approval online. We will walk you through the math before you sign anything.