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Non-Warrantable Condo Bridge Loan

Florida Non-Warrantable Condo Bridge Loan Mortgage

A Non-Warrantable Condo can be a great way to build equity and have the benefits of homeownership without the responsibilities of maintaining a standalone property.

A non-warrantable condo bridge loan serves as a financial solution for homeowners or real estate enthusiasts looking to bridge the financing gap when acquiring a new property while still in the process of selling another, be it a primary, secondary, or investment type property.

Securing funding for the perfect non-warrantable condominium can be challenging when the sale of your previous property is pending. While placing an offer on a non-warrantable condo with a contingency tied to the sale of your current property is an option, it may jeopardize your chances of securing the desired non-warrantable condo. A non-warrantable condo bridge loan becomes instrumental in negotiating contracts and ensuring that your offer is taken into serious consideration.

Our non-warrantable condo bridge loan is designed to assist you in covering the down payment and/or closing costs associated with a new condominium. This short-term loan can be repaid once your current property successfully sells. Even if you have some funds available for a new non-warrantable condo’s down payment, a non-warrantable condo bridge loan enables you to contribute more, helping you avoid mortgage insurance or secure better terms.

It is important to note that not all condos are classified as the same. Here in Florida, condo are classified as  warrantable condo, non-warrantable condo, condotel or a coop.

A Non-Warrantable Condo:

A non-warrantable condo refers to a condominium unit or project that does not meet the eligibility criteria set by government-backed entities like Fannie Mae and Freddie Mac. This can make it difficult to obtain a mortgage for the property as many lenders view it as high risk. The reasons for a condo to be considered non-warrantable can include:

  • New Construction
  • Lack of control over the HOA by the owners
  • High percentage of non-owner occupied units
  • Allowing short-term rentals
  • A single entity owning more than 10% of units
  • Any ongoing litigation involving the building owner or developer

Advantages of Non-Warrantable Condo Bridge Loan:

  • Up to 75% LTV for Bridge Loan on Primary Homes
  • Up to 60% LTV for Bridge Loan on Second Home and Investment Properties
  • No monthly payments
  • No prepayment penalty
  • 1 balloon payment to payoff bridge loan within 12-months for primary homes
  • 1 balloon payment to payoff bridge loan within 6-months for second home / investment properties
  • 1 fixed rate that is interest only
  • 1 balloon payment to payoff bridge loan within 12-months
  • Get your dream home now without waiting to sell
  • Make non-contingent offers on a home now
  • Uses equity from your existing home [ Primary, Secondary or Investment ] to buy the next home
  • Great option if you need to relocate for work or want to retire
  • Warrantable Condos available

    Non-Warrantable Condo Bridge Loan Mortgage Requirements:

    • Minimum credit score 680
    • Max debt to income ratio is 50%
      • Debt to income ratio is based on second permanent loan [ new home being purchased ] using principal, interest, taxes, insurance and home owners association fees if applicable
    • Can qualify on traditional Tax Return /W2 income, retirement income, or 12 / 24 month of Bank Statements, or assets as income
    • The property being departed must be listed on MLS; the listing agreement is required
    • The property being departed cannot be rented; we do not accept any rental income to qualify
    • Bridge loan must be in the first lien position on the new condo
    • Loan amounts from $200,000 to $5,000,000
    • Bridge financing only available in conjunction with financing on the new purchase home

    Non-Warrantable Condos are defined differently than Single Family Homes

    Non-Warrantable Condominiums are a single, individually-owned housing unit in a multi-unit building. The non-warrantable condominium owner holds sole title to the unit, but owns land and common property (elevators, halls, roof, stairs, etc.) jointly with other unit owners, and shares the upkeep expenses on the common-property with them. Unit owner pays property taxes only on his or her unit, and may mortgage, or sell it just like any other personal property. Non-Warrantable Condos have slightly higher interest rates than single family homes.

    When your ready to get started on your Non-Warrantable Condo Bridge Loan, we are bridge loan experts to guide you through the entire process, the first step is getting you pre-approved. You can apply online or you prefer to speak with one of our Bridge Loan Mortgage Experts, we would be happy to speak with you. Call or text us at 407-955-4575.

    Non-Warrantable Condo Bridge Loan