The Quick Read: To get a condo through the questionnaire on a DSCR loan, screen the building before you offer, order the form early, and get the HOA’s answers and financials into the file before submission. The lender reviews the building as collateral, separate from your unit, so the form decides whether the project is acceptable and at what leverage. A clean set of answers keeps the file moving, while a flagged one usually lowers leverage or narrows the lender pool instead of ending the deal.
- The questionnaire is completed by the HOA or its manager, not by you.
- It reports project facts that feed both eligibility and the coverage ratio, including monthly dues.
- A non-warrantable building is not an automatic decline in DSCR lending. It typically means a more conservative review.
- Order it before you pay for an appraisal.
- A slow or refusing HOA is itself a warning sign.
Condo files carry one extra layer that houses don’t: a building review. Investors who treat that layer as a step to manage, rather than a surprise to survive, tend to see far fewer stalled deals. This guide covers how the review works, what each answer does to a file, and what to do when the answers come back bad. For the broader program picture, Lendmire’s complete DSCR loans guide covers qualification from the ground up.
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What Is the Condo Questionnaire, and Why Does a DSCR Lender Still Want It?
The questionnaire is a project-level form that the lender sends to the HOA or its management company. The association completes it and returns it. The lender uses it to judge whether the building is acceptable collateral.
That surprises investors who expect a rental loan to look only at the rent. A DSCR loan qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. But the collateral is still a unit inside a building. If the building has heavy delinquencies, active defect litigation, or thin insurance, the unit’s value and resale pool suffer no matter how strong the rent is.
The form covers project completion, ownership concentration, delinquent assessments, litigation, insurance, deferred maintenance and reserves, per The HOA Guide. The names you may hear, Form 1076 and Form 476, come from the agency side of the market. Fannie Mae’s Selling Guide calls its Form 1076 optional, though lenders are encouraged to use it. DSCR lenders are not bound by those forms. Many use their own versions, and the questions overlap heavily.
Does “Non-Warrantable” Mean the Condo Can’t Get a DSCR Loan?
No. “Non-warrantable” is an agency label for a project that fails agency eligibility standards. It is not a DSCR verdict.
Across the wholesale network Lendmire places files with, programs run their own project review and do not require warrantable status. A non-warrantable flag typically means a more conservative review: lower leverage and a lower loan-size cap, rather than an automatic decline. Some lenders in the network decide these files case by case, and the strictest overlays still end specific files.
Two misconceptions cause most of the panic. First, DSCR does not skip the condo review. Second, agency rules don’t govern DSCR files. What does matter is the building’s actual facts, which brings us to the questionnaire’s contents.
What Is the Lender Actually Checking?
The lender reads the HOA’s answers against each program’s tolerances. The form gathers information and is not an approval. The table below shows what a clean answer looks like, what raises a flag, and what the flag typically does to a DSCR file.
| Topic | Clean answer | Likely flag | Typical file impact |
|---|---|---|---|
| Litigation | None, or routine dues collection | Active defect or structural suit | Lower leverage, or a lender-specific decline |
| Delinquent dues | Low share of units behind | Heavy delinquency | Narrower lender pool |
| Investor concentration | Balanced owner mix | One entity holds many units | Non-warrantable review |
| Commercial space | Minor or none | Large non-residential share | Added scrutiny |
| Insurance | Master policy in force | Gaps or lapses | Delay or decline |
| Reserves | Funded, with a plan | Underfunded, deferred repairs | Pricing or leverage adjustment |
| Rental pool or hotel use | None | Condotel features | Separate program category |
| Special assessments | None or fully disclosed | Large pending assessment | Counted in reserves or monthly cost |
Routine matters, such as the HOA suing an owner for unpaid dues, are generally treated differently from defect and safety suits, according to a condo-approval.com explainer. That is an agency-side distinction, so DSCR lenders weigh it their own way. The litigation type matters more than the mere existence of a suit.
Pre-Screen the Building Before You Make an Offer
Pre-screening is a more affordable step and the one investors skip most. Before you write an offer, ask the HOA manager or listing side about the investor-unit share, delinquencies, pending litigation, and any planned assessments.
A seller’s agent can sometimes disclose the investor percentage in writing without a formal questionnaire, as a BiggerPockets forum thread notes. Ask for it in an email so you have a record.
Then request the core documents:
- Master insurance policy
- HOA budget and financial statements
- Reserve information
- Governing documents
- Meeting minutes
- Litigation and special-assessment details
Cross-check them against each other. Minutes that mention a roof claim while the budget shows no reserve funding tell you more than any single page. If the building has sat on a list of troubles for a while, the paperwork usually shows it.
Step by Step: Getting the Questionnaire Through
1. Confirm building status early. Do it before the offer, as above.
2. Have the lender order the questionnaire. The HOA or its manager completes it and usually charges a fee. Fees vary by association.
3. Collect the supporting documents. Deliver the full set together. Special-assessment notices and any engineering or inspection reports belong in the package when they exist.
4. Check the answers for completeness. Blank lines and vague entries invite follow-up questions. Read the returned form before it goes to the underwriter.
5. Submit, then expect questions. The underwriter may ask for more. Quick, complete answers keep the file from stalling.
6. Apply the project overlay. Non-warrantable status sets the leverage and loan-size caps.
7. Run the coverage math with dues included. Appraisal work, including the rent schedule, runs alongside this review.
Sequence matters. Order the questionnaire before you spend on an appraisal. If the building fails, you have not paid for a valuation on a file that cannot proceed.
Why Condo Dues Change the Coverage Ratio
Here is the part many investors miss. DSCR divides monthly rent by the full monthly obligation: principal, interest, taxes, insurance, and HOA dues. The questionnaire reports the dues amount, so a high-dues building lowers the ratio compared with an identical house.
Picture two units with the same rent and the same purchase price. One sits in a building with modest dues and clears 1.2x. The other carries heavy dues, and coverage slips toward 1.0x. Same rent, different building, different file. Across the network, 1.00 is where select programs start, and stronger ratios open better pricing and leverage. A separate select-lender path takes coverage below 1.00, with leverage and terms adjusted.
One caution. Clearing 1.00 is not the same as positive cash flow. DSCR compares rent to the monthly obligation only. Repairs, vacancy, management, utilities, and capex sit outside it.
A special assessment adds another wrinkle. Having one does not automatically make a building non-warrantable. It matters through how the lender classifies it, for example as a reserves item or as a monthly figure added to the monthly obligation. No fixed percentage haircut applies.
A Worked Example: Scoring a Building Line by Line
Say an investor is buying a one-bedroom condo in a mid-rise building. Leverage is 75% LTV on a purchase, and the credit score sits in the 700s. Here is how the building scores. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
- Litigation: The HOA reports one routine dues-collection suit, which reads as clean.
- Delinquencies: A modest share of owners is behind. Acceptable, but worth watching.
- Investor concentration: One entity owns a noticeable block of units, which is a flag.
- Insurance: Master policy in force, which reads as clean.
- Reserves: Funded, but the minutes mention a deferred facade repair, which is a flag.
- Dues: Moderate, with coverage landing in the low 1.2 range.
Two flags mean a more conservative review. The likely result is lower leverage than the 75% the investor wanted, or a request for more documents. The investor can still proceed, but the down payment grows and the reserves cushion matters more. Under typical network guidance, reserves run about 6 months of PITIA, stepping up to about 9 months on loans above $1,500,000, and every file is underwritten individually.
The larger point: a bigger down payment can lower the monthly obligation and lift coverage, but it never erases leverage caps, credit floors, reserve rules, or property eligibility. The strongest files clear both tests, enough equity and enough rental coverage.
When the Questionnaire Comes Back Bad
Triage by flag type.
Litigation. Defect, safety, or structural suits are the serious ones. Active defect litigation, heavy delinquency, or condotel features can end a specific file. Routine collection suits usually do not. If the suit is serious, walk away or move to a different building. Lendmire’s piece Can You Scale Past Ten Properties With a DSCR Condo in Litigation? covers that edge case.
Investor concentration or non-warrantable status. This is fixable on price and leverage. Expect lower leverage and a smaller loan-size cap.
Condotel or rental-pool features. These have their own program category and a smaller lender pool.
Special assessment. Get the notice and any engineering report. The lender may treat it as a reserves item or a monthly add-on. Run the coverage math both ways before you commit.
Status flips. A building can become non-warrantable after a lawsuit or a spike in delinquencies, so a clean answer today is not permanent.
Also weigh the exit. A bad questionnaire is a warning about resale. Future buyers may struggle to get conventional financing, which shrinks the buyer pool. One governance-focused analysis estimates non-warrantable units sell for 5 to 15 percent below comparable warrantable units, citing a lender. That figure is secondhand, so treat it as directional.
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.
What If the HOA Is Slow, Self-Managed, or Refuses?
Start by escalating politely and in writing. Send the form to the manager, copy the board contact, and ask for a completion date. Self-managed associations often lack a template, so offering the lender’s form pre-filled with the facts you already know can help.
A refusal is a different matter. An HOA that won’t complete the form is itself a warning sign. If the board has no appetite to document its own building, the lender, and a future buyer, will draw the same conclusion. This is the point where the right move is often to renegotiate or walk.
Short-term rental plans add a second gate. 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. HOA minimum-rental-period rules can also be amended after purchase.
Purchase vs. Refinance, Small Buildings, and Multiple Units
The questionnaire applies to both purchases and refinances on condos. On a refinance, the review looks the same, but leverage tops out lower. Cash-out refinances top out around 75% LTV on standard rentals across most of the network. For the cash-out side of the form, see Lendmire’s article HOA Questionnaire Requirements for a Condo Cash-Out Refinance. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
Small walk-ups, including two-to-four-unit regimes, are still reviewed as condos. Buying several units in one building can also shift the investor share and building status, which is worth modeling before the second contract.
One property type needs a plain statement. Manufactured homes, log homes, and barndominiums are not offered in the network’s DSCR programs, and that applies whether or not they sit in a community with an HOA.
Key Terms Defined
Condo questionnaire: A project-level form the HOA completes so the lender can judge the building as collateral.
Warrantable condo: A unit in a project that meets agency eligibility standards.
Non-warrantable condo: A unit in a project that fails agency standards, which in DSCR lending typically triggers a more conservative review rather than a decline.
Condotel: A hotel-style or rental-pool condo project, which has its own program category.
PITIA: The monthly obligation of principal, interest, taxes, insurance, and HOA dues that rent is measured against.
DSCR: Monthly rent divided by PITIA; a measure of rental coverage, not of cash flow.
Frequently Asked Questions
Who fills out the condo questionnaire?
The HOA or its management company completes it, not the borrower. The lender sends the form, the association returns it, and a fee usually applies. Your job is to make the request easy to answer and to supply the supporting documents alongside it.
Does a failed questionnaire end a DSCR deal?
Not always. A flag typically triggers a more conservative review with lower leverage and a lower loan-size cap. Serious defect litigation, heavy delinquency, or condotel features can still end a specific file. Each lender decides case by case, subject to lender guidelines.
When should I order the questionnaire?
As early as the contract allows, and before you pay for an appraisal. Pre-screening the investor share and delinquencies before you make an offer costs nothing and catches most problems.
Do condo dues affect DSCR lender review?
Yes. Dues are part of the monthly obligation that rent is divided by, so a high-dues building lowers the ratio versus an identical house. The questionnaire reports the dues amount.
What if the HOA won’t return the form?
Treat it as a warning sign. Escalate in writing, offer a pre-filled form, and consider renegotiating or walking if it stays stuck.
If you are buying or refinancing a rental property and want to see how the numbers work, Lendmire can help you compare DSCR loan options based on the property income, credit profile, leverage, and investor goals.
Tax treatment varies; consult a qualified professional.
Lendmire is a mortgage broker arranging DSCR investor loans through select lenders in its wholesale network across 41 markets, including Washington, D.C. Program details are subject to lender guidelines and are not a commitment to lend.
About Lendmire
Lendmire — NMLS# 2371349 — is a mortgage brokerage specializing in DSCR investor loans, helping arrange financing across 41 markets, including Washington, D.C., through wholesale and investor-lending channels. The model centers on property-level rental income reviewed by the lender rather than W-2 documentation, subject to lender guidelines, suiting entity-owned and multi-property investors. Lendmire holds Scotsman Guide Top Mortgage Workplace recognition for 2025 and 2026.
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References
2. Fannie Mae Selling Guide B4-2.1-01
4. BiggerPockets forum thread on condo questionnaire financing
This article is part of Lendmire’s DSCR loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: How the DSCR Loan Process Works From Application to Closing · How to Get Delayed Financing on a DSCR Loan After an All-Cash Purchase · How to Apply for a DSCR Loan on a Rental Property
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Important disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage brokerage. Lendmire is not a direct lender, depository institution, or financial advisor. All loan inquiries are subject to lender underwriting; this article does not constitute a commitment to lend. Rates, terms, and program guidelines are subject to change without notice and vary by borrower profile, property type, and state. Information in this article is general in nature and is not financial, legal, or tax advice. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.