The Quick Read: Only when the loan stays at or under $1,500,000 and 75% LTV, subject to underwriting: a non-warrantable condo can carry a DSCR loan through select wholesale programs, but that ceiling sits far below the super jumbo tier, which starts above $3,000,000, so a super jumbo loan on one generally isn’t available. The building’s status limits loan size, not whether the loan exists. The fixes are a bigger down payment, a different building, or a project that gets re-reviewed.
- A non-warrantable condo is reviewable on DSCR, but with a lower ceiling than a warrantable one.
- Across our wholesale network, the non-warrantable cap is 75% LTV and $1,500,000, whether you vest in your own name, an LLC, or a trust.
- Super jumbo DSCR loans run from above $3,000,000 to $10,000,000. A non-warrantable unit can’t reach that range.
- “Fixed” is a rate-structure question. It is settled lender by lender, not by the condo label.
- HOA dues count in the coverage math, so model them before you make an offer. Every figure here varies by lender and program — guidelines, property type, leverage, and credit profile all apply.
What “Non-Warrantable” Actually Means
A condo is non-warrantable when the building fails the standard project rules that big secondary-market buyers use. The problem sits with the project, not with you. Your credit and your rents can be excellent and the label still applies.
DSCR Calculator
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Rate source: Freddie Mac 30-yr average via FRED® — Federal Reserve Bank of St. Louis · effective Oct 15, 2026
Prefilled with starting assumptions — enter your own rent or nightly figures, taxes, insurance, and HOA for a more accurate picture.
Program parameters update from Lendmire’s centralized guideline source. Taxes and insurance are editable estimates.
As of Oct 15, 2026 · General Freddie Mac market benchmark, not a Lendmire loan offer. Rent, nightly rate, occupancy, taxes, and insurance are editable estimates. Short-term rental figures are estimates only and vary significantly by season, property type, management approach, and local short-term-rental rules — confirm local regulations before relying on them. Qualifying income for short-term rentals varies by program — some use appraisal market rent, others use documented STR history or projections — and is confirmed in underwriting. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
The common triggers are easy to list. They include hotel-style operations, commercial space, one owner holding too many units, critical repairs left undone, pending litigation, and weak insurance or HOA finances. The agency rulebook lays these out in Fannie Mae’s Selling Guide on ineligible projects, which also says the agency won’t purchase or securitize loans on units in those projects.
That is the only time we’ll lean on agency rules in this piece, and only for contrast. DSCR loans are non-QM, which means they sit outside the standard mortgage box. They are not sold to those agencies. So the agency label doesn’t decide your fate. It tells the lender where to look harder.
DSCR loans are designed for non-owner-occupied investment properties. Because they are business-purpose investor loans, they are reviewed differently from a standard owner-occupied mortgage.
Why a DSCR Loan Can Work on These Buildings
A DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. DSCR means debt service coverage ratio. You divide the monthly rent by the full monthly obligation: principal, interest, taxes, insurance, and HOA dues.
Because no agency buys the loan, the project isn’t tested against the agency checklist pass or fail. Instead the lender reads the building as collateral. Is the HOA solvent? Is the master insurance adequate? Is there litigation or a big special assessment coming? A building that fails the agency list can still pass that review.
This is the mechanism most investors miss. The lender still examines the project. It just doesn’t automatically decline on a label.
Strong borrower credit doesn’t cure a weak building, either. A high coverage ratio and a solid score help the file. They don’t override a project with serious HOA finance or condition problems. Across the programs we place files with, the project review runs alongside the borrower review, and either one can stop a file.
What Is the Catch on Loan Size?
Non-warrantable condos cap at 75% LTV and $1,500,000 across our network, subject to underwriting. That cap is the whole story for anyone chasing a luxury unit. A warrantable condo can follow the full size ladder. A non-warrantable one stops at the cap. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
Here is the ladder for context. These are ceilings through select wholesale programs on a DSCR of 1.00 or higher, and every figure is subject to underwriting.
| Loan size | Purchase LTV | Cash-out LTV | Credit for this leverage |
|---|---|---|---|
| $150K–$1M | 80% | 75% | 660+ |
| $1M–$1.5M | 75% | 70% | 700+ |
| $1.5M–$3M | 75% | 60% | 720+ |
| $3M–$4M | 65% | — | 700+ |
| $4M–$10M | 60%, on review | — | 700+ |
Read that table with the non-warrantable cap in mind. On a non-warrantable condo, 75% LTV and $1,500,000 are the most you should plan on, no matter which row the price would otherwise land in. The higher purchase figures in the first row don’t carry over. The credit column shows what each row’s top leverage needs. The program floor itself is 660, but the score needed for top leverage rises with loan size, and the super jumbo overlay above $3,000,000 sets a 700 minimum. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
Above $4,000,000 every request is reviewed case by case before submission, purchase or rate-and-term only. A $10,000,000 non-warrantable unit can’t fit under the cap at any normal leverage. The math fails before the property does.
Lendmire’s piece on how much a super jumbo cash-out releases on a non-warrantable condo covers the refinance side in detail.
What About the “Fixed” Part?
Fixed versus adjustable is a pricing and structure choice made at the lender level. The non-warrantable label doesn’t create a special rule for it. Whether a given lender offers a fixed structure on a given non-warrantable condo depends on the lender, the loan size, and the file. Ask for it up front, in writing, before you spend money on appraisals.
Interest-only is better defined. Through select programs, you can get a 120-month interest-only period on 30- and 40-year terms, up to 75% LTV. The file is qualified on ITIA, meaning interest, taxes, insurance, and HOA dues, with coverage of 0.75 or better. That matches the 75% non-warrantable cap exactly, so the interest-only runway is available to this property type at its maximum leverage, subject to underwriting. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
Here is a thinking-out-loud point. Interest-only lowers the number you qualify on, which helps coverage. It also means the balance doesn’t shrink during that period. For a rental you plan to hold and refinance, that can be a fair trade. For one you plan to hold for decades, it deserves more thought.
This article doesn’t quote rates, payments, or pricing. Those depend on the lender and the file, and the site’s calculator offers an illustrative estimate only.
How HOA Dues Change the Coverage Number
HOA dues sit inside the monthly obligation, and on condos they can be large. Picture a unit where rent covers principal, interest, taxes, and insurance at about 1.25x. Now add dues equal to roughly 14% of that obligation. Coverage drops to about 1.10x. Same unit, same rent, thinner cushion.
Those figures are a modeled assumption, not market data. The point is the direction: dues belong in the denominator, so ask the association for them early.
At 1.00x or higher, a file earns full leverage within the program limits. Coverage from 0.75 to 0.99 is a real path through select programs to $2,000,000, but LTV and terms adjust, subject to underwriting. That path rarely helps a non-warrantable condo, because the cap already sits at $1,500,000 and 75%.
No-ratio loans reach $2,000,000 through select wholesale programs, with a seven-year clean housing history and 0x30x24 credit, subject to underwriting. They don’t lift the non-warrantable ceiling either.
Key Terms Defined
Warrantable condo: a condo in a building that meets the standard secondary-market project rules on ownership mix, finances, insurance, and condition.
Non-warrantable condo: a condo in a building that fails one or more of those rules.
Super jumbo: a loan above $3,000,000 on our ladder, which runs to $10,000,000.
DSCR: the rent divided by the full monthly obligation. At 1.00, rent covers the obligation.
ITIA: interest, taxes, insurance, and association dues, the obligation used to qualify an interest-only loan.
Condotel: a condo in a hotel-style project, often with a rental pool.
Screen the Building Before You Write an Offer
Run the building before the earnest money goes hard. The sequence below works because each step can end the deal cheaply.
1. Ask for the HOA condo questionnaire. The HOA manager completes it, and it covers the building’s condition, finances, rentals, and ownership. HOAs usually charge a fee for it.
2. Get the budget and the master insurance. Reserve funding and coverage gaps show up here.
3. Read the declaration and bylaws. Look for rental minimums, short-term-rental bans, and use limits.
4. Ask for the investor-unit count in writing. A building full of rentals is a common trigger.
5. Ask about litigation and special assessments. Pending suits and planned assessments both matter to the file.
6. Get the dues and run coverage. Use the full obligation, dues included.
7. Send it all to your broker before you go hard. A lender reading the same documents can tell you early whether the file proceeds.
The questionnaire answers, not the warrantable label, decide whether the deal works forward.
DSCR vs. conventional financing
There are two common ways to finance an investment property, and they qualify you differently — here’s how investors weigh them.
Why investors choose it
- Qualifies on the property’s rental income — no personal tax returns, W-2s, or pay stubs needed to document income.
- No personal debt-to-income ceiling to clear, so existing mortgages and obligations don’t cap your borrowing the same way.
- Can be closed in an LLC, keeping the property inside a business entity.
- Built for scaling — not held to the limit on number of financed properties that conventional financing applies.
- Underwriting centers on the deal: generally qualifies when the rent covers the payment, a 1.00x coverage ratio being a common baseline (confirmed in underwriting).
- Designed specifically for investment property, including long-term and, where the program allows, short-term rentals.
Where it’s strong
- Often the lowest ongoing financing cost for a buyer who fully qualifies on personal income — a fit for a first property or a cost-first purchase.
Trade-offs for investors
- Requires full personal income documentation and must fit within a debt-to-income limit — salary, existing debts, and other mortgages all count.
- Typically held in your personal name rather than a business entity.
- Caps how many financed properties you can carry, which can become a ceiling as a portfolio grows.
- Evaluates you as a borrower as much as the property, which usually means more paperwork.
How investors usually choose: a first or single property often optimizes for the lowest financing cost; portfolio builders often optimize for leverage, vesting in an LLC, and scaling past conventional caps. The right answer depends on your goals, the property, and current guidelines — both paths run through select lenders in Lendmire’s wholesale network, with eligibility and terms confirmed in underwriting.
Red Flags a DSCR Lender Still Reads
| Issue | Why it matters | What to ask |
|---|---|---|
| Pending litigation | Can drain HOA funds | Nature and exposure |
| Weak HOA reserves | Raises assessment risk | Budget and reserve study |
| Deferred repairs | Hurts condition and value | Open critical repairs |
| High investor share | Signals resale pressure | Rental unit percentage |
| Insurance gaps | Collateral risk | Master policy details |
| Hotel or rental pool | Tighter caps apply | Pool agreement |
An accurate questionnaire matters as much as the questions. Disclosure forms need honest answers, and a false litigation disclosure can create serious trouble for everyone who signs.
Condotels and Short-Term Rentals
Condotels carry tighter caps than other non-warrantable condos. Across our network the ceiling is 75% on a purchase and 65% on a refinance, both capped at $1,500,000, with $250,000 cash in hand, subject to underwriting. The pool agreement and the hotel-style operation are the reasons.
Short-term rental income can qualify through select programs, with coverage of 1.00 or higher and loans to $2,000,000. The file uses twelve months of operating history on a refinance, or the appraisal’s short-term-rent analysis on a purchase, at 80% of gross. Only experienced investors qualify: twelve months owning income property in the last thirty-six. A non-warrantable condo still tops out at $1,500,000.
The HOA documents must also allow it. Short-term rental rules can vary by city, county, HOA, and property type, so investors should confirm local rules before relying on projected rental income. Municipal permission is documented for each specific property.
How the Routes Compare
| Route | Fits | Main tradeoff |
|---|---|---|
| DSCR loan | Rental income covers the payment | $1.5M and 75% cap on this condo type |
| Portfolio bank loan | Borrowers with income documents | Personal income review |
| Hard-money or bridge | Short holds, repairs | Short runway, exit risk |
| FHA or VA | Owner-occupants only | Not for investment property |
| Cash | Any building status | Ties up capital |
FHA and VA loans are for primary residences. They also run their own condo approval processes. Neither is an investor workaround.
When It Won’t Work
- The loan needs to exceed $1,500,000. The cap blocks it.
- Rent doesn’t cover the full obligation. Dues are the usual culprit.
- The building has unresolved critical problems. A lender may stop the file on the project alone.
- The HOA bans rentals or sets long minimums. Your income plan fails.
- You plan to live in it. DSCR financing is business-purpose only.
Three Ways to Fit the Deal
First, put more money down on a higher-priced unit so the loan itself lands at or under $1,500,000. Second, choose a warrantable building when you need a bigger loan. Third, ask whether the HOA is fixing the failing item. A building’s status can change once the problem is cured and the project is re-reviewed.
Agency rules shift over time, so a building that fails today may pass later. The reverse can also happen. Check the current status before you commit.
Exit Planning
The label reflects secondary-market eligibility, not property quality. It can still narrow your pool of future buyers, and buyers needing standard financing can’t take the unit. Plan for a buyer paying cash or using non-QM financing, or plan for a long hold. Tax treatment varies; consult a qualified professional.
For context on the word jumbo: the baseline one-unit conforming limit is $832,750 in most areas and $1,249,125 in high-cost areas, per Orrick and Calculated Risk’s FHFA excerpt. DSCR files sit outside that framework.
Frequently Asked Questions
Can a non-warrantable condo be financed at all on a DSCR loan?
Yes, through select wholesale programs, at up to 75% LTV and $1,500,000, subject to underwriting. The label limits size and leverage. It doesn’t end the conversation. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
Does vesting in an LLC change the cap?
No. The non-warrantable cap applies the same way to individual, LLC, or trust vesting. Entity vesting is welcome, subject to program terms, but layered entities aren’t.
What credit score and reserves do I need?
The program floor is 660, and the score needed rises with leverage. At 75% above $1,000,000, expect 700 or higher for that leverage. Reserves are typically six months on the subject property, and twelve for first-time investors, subject to underwriting.
Can I get a fixed structure on this loan?
It depends on the lender, the loan size, and the file. Ask before you pay for appraisals. The interest-only option is more defined: 120 months on 30- and 40-year terms up to 75% LTV, qualified on ITIA.
Do I need two appraisals?
Not on this property type. Two appraisals apply above $2,000,000, and a non-warrantable condo caps at $1,500,000.
If you are buying or refinancing a high-balance rental property and want to see how the numbers work, Lendmire can help you compare super jumbo DSCR loan options based on the property income, the loan balance, credit profile, leverage, and investor goals. For deeper background, see the complete DSCR loans guide. Lendmire is a broker arranging business-purpose financing through select lenders in 41 markets, including Washington, D.C. Nothing here is a commitment to lend.
For current guidelines and terms, see Lendmire’s super jumbo DSCR loan programs page.
Lendmire’s self-employed mortgages page presents both super jumbo programs, bank statement and DSCR, side by side.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage brokerage built around DSCR investor lending, with programs available in 41 markets, including Washington, D.C. DSCR lenders commonly evaluate rental-income coverage instead of personal income paperwork — a practical fit for LLC-owned and multi-property investors. Terms vary by lender, property, leverage, and program. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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Informational only. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
References
1. Fannie Mae Selling Guide, B4-2.1-03 Ineligible Projects
2. Gustancho, Condominium Questionnaire
3. Orrick InfoBytes, FHFA 2026 Conforming Loan Limits
4. Calculated Risk, FHFA Baseline Conforming Limit
This article is part of Lendmire’s super jumbo DSCR loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Revocable vs Irrevocable Trust on a Non-Warrantable DSCR Condo Loan · How to Build a Non-Warrantable Condo Appraisal for Super Jumbo DSCR · How Super Jumbo DSCR Limits Work on a Non-Warrantable Luxury Condo
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Disclosure information. Lendmire is a state-licensed mortgage brokerage under NMLS# 2371349. Lendmire is not a depository institution, direct lender, or financial advisor — all loans referenced are placed through wholesale lender partners and are subject to each lender's underwriting standards. This article is provided for general informational purposes and is not a commitment to lend, nor does it constitute financial, legal, or tax advice. Loan programs, terms, rates, and qualification standards change without notice and depend on borrower profile, property type, and the state in which the subject property is located. Equal Housing Opportunity provider. NMLS Consumer Access: nmlsconsumeraccess.org.