DSCR Loans for Warrantable Condominiums

Warrantable condos are the condo investor’s best-case scenario — essentially priced like single-family rentals with only a minor rate premium, full 75-80% LTV access, and a large pool of willing lenders. The catch is that “warrantable” is a moving target that depends on the project (not just the unit), and roughly 40-50% of condo projects nationally fail one or more warrantability tests at any given moment. Getting the condo questionnaire early and running it against your target lender’s checklist is the single highest-leverage diligence step in a condo DSCR loan deal.

This guide is for investors targeting condo purchases or refinances where the project meets Fannie/Freddie-style warrantability. If your target is a condotel, a newly-converted condo project, a project with heavy investor ownership (>50%), or a project currently in structural litigation, see our Non-Warrantable Condos & Condotels guide instead — the pricing, lender pool, and underwriting rules are dramatically different.

Key DSCR parameters for warrantable condos

The pricing premium over SFR is small (0.125-0.25%) because warrantable condos are considered nearly as liquid as single-family homes from a collateral perspective. The tradeoff is an extra diligence layer — the condo questionnaire — and a project-level review that can produce surprises after contract.

The warrantable condo DSCR lender landscape

Essentially every national DSCR lender accepts warrantable condos. Notable specialists:

• Kiavi — Warrantable condo at 75% LTV routine; 80% LTV on strong files.
• Visio Lending — Warrantable condo at 80% LTV; solid condo questionnaire review process.
• Lima One Capital — Warrantable condo included in standard DSCR program.
• LendingOne — Competitive on 720+ FICO warrantable condo.
• Kiavi and New Silver — Both strong on quick-close warrantable condo purchases.
• Angel Oak — Foreign national warrantable condo accepted.
• Verus / Deephaven (wholesale) — Broad condo acceptance through broker channel.

Florida-specific: Some lenders (Kiavi, Visio, Lima One, LendingOne) continue to close Florida condos, but with the SB 4-D milestone inspection packet, structural integrity reserve study (SIRS) compliance, and case-by-case review on buildings 5+ stories. Other lenders have pulled out of Florida condos entirely or restricted to buildings under 3 stories. Always confirm Florida condo acceptance with your lender in the first conversation.

Qualification details

• Entity ownership: LLC vesting accepted identically to SFR.
• Landlord experience: Not required for condo purchases on most programs.
• Reserves: 3-6 months PITI; the project’s HOA reserves are reviewed separately in the condo questionnaire.
• Rental restrictions: Many condo HOAs have minimum lease terms (30-day, 6-month, 12-month minimums) or rental caps (max % of units rentable). Review the HOA declaration for rental restrictions before assuming a property is rentable. Some projects restrict short-term rentals entirely.
• Owner-occupancy ratio: Must be >50% across the project. The questionnaire asks for this; some HOAs track it, others don’t and will give a best-estimate number.
• Concentration: No more than 20% of units (sometimes 25% on projects 20+ units) owned by a single entity.

Appraisal and condo questionnaire

• Appraisal form: Form 1073 (Individual Condo Unit Appraisal Report) with Form 1007 rent schedule addendum.
• Cost: $600 – $900, slightly higher than SFR due to condo-specific comparable requirements.
• Turn time: 7 – 14 business days.
• Condo questionnaire: Completed by the HOA or HOA management company. Typical fee $100-$350. Processing time 3-15 business days — order EARLY in the process. This is the single most common cause of DSCR condo closing delays.
• Master insurance certificate: Required, obtained from HOA or insurance broker. $25-$100 fee typical.
• HOA financial documents: Most lenders require current year budget and prior-year financials. HOA may charge a fee ($50-$250) to produce these.
• Florida overlay (SB 4-D): Milestone inspection report for buildings 3+ stories, SIRS documentation, structural inspection compliance.

Rate and fee expectations

July 2026 ballparks on a clean warrantable condo file (720+ FICO, 1.0 DSCR, 75% LTV, 5-year prepay):

• Warrantable condo 30-year fixed: 7.000% – 7.750%
• 10-year I/O intro: +0.125% – +0.25% over 30-year fixed
• Lender points: 1.00 – 2.00 points
• Appraisal: $600 – $900
• Condo questionnaire fee: $100 – $350
• HOA financial docs fee: $50 – $250
• Insurance cert fee: $25 – $100
• Underwriting/processing: $1,200 – $1,995
• Title/settlement: $1,500 – $3,500
• Total closing costs (excluding down payment): 3.75% – 5.75% of loan amount

The small rate premium over SFR (0.125-0.25%) is the most-cited data point investors care about. On a $400K loan, 0.25% over 30 years is roughly $20,000 in extra interest — real money, but modest relative to the property-level economics.

Common pitfalls on warrantable condo DSCR loans

1. Not pulling the condo questionnaire until after contract. If the project fails warrantability (owner-occupancy <50%, single-entity >20%, active structural litigation), your deal dies and you’ve burned earnest money and appraisal fee. Pull the questionnaire in diligence.
2. HOA dues missing from DSCR math. HOA monthly dues enter the PITI denominator of DSCR. A $450/mo HOA on a $250K condo knocks roughly 10-15 DSCR points off the calculation.
3. Special assessments pending. HOAs with special assessments for structural repairs, roof replacement, or reserve-study-mandated work create ongoing cash flow drag. Some lenders decline if special assessment exceeds 2-3% of property value.
4. Rental restriction mismatch. You plan to Airbnb a unit; HOA declaration bans rentals under 30 days. Read the HOA rules before offer.
5. Leasehold vs. fee simple. Hawaii and some NYC condos are leasehold. Most DSCR lenders decline leasehold; a few accept with very specific documentation.
6. Florida 3+ story buildings. Post-Surfside overlays are real. Confirm lender accepts Florida condo AND has reviewed the building’s SIRS/milestone documentation.
7. Commercial space percentage. Projects with >25-35% commercial space (e.g. retail on ground floor) can fail warrantability. Confirm via questionnaire.
8. Over-60 delinquency on HOA dues >15%. HOA with heavy delinquency fails warrantability. This is more common in distressed projects and post-COVID lingering issues.

Strategy notes

Warrantable condo DSCR is the right tool when:

• Project passes Fannie/Freddie warrantability (you verified via questionnaire pre-contract).
• You’re acquiring a rental condo in a strong rental market with no HOA rental restrictions (or at least no short-term restrictions if that’s your model).
• The monthly HOA is reasonable relative to rent (10-18% of gross rent typical; much higher eats DSCR fast).
• Unit condition is C1-C4 and the project has no pending structural or special assessment issues.

It’s the wrong tool when:

• Owner-occupancy under 50% or concentration over 20% — use non-warrantable condo program.
• Condotel or short-term rental program — use non-warrantable/condotel program.
• Florida 5+ story building without SB 4-D compliant SIRS — may not qualify with any DSCR lender.
• HOA has active structural litigation — deal is effectively dead for warrantability-based financing.

Related tools

• Run DSCR math on the DSCR Calculator
• Eligibility check on the Qualification Estimator
• Current rates on Rates
• Florida-specific guide: Florida DSCR
• Lender comparison: Best DSCR Lenders
• Foundational: What Is a DSCR Loan
• Closing cost detail: Closing Costs and Fees

Warrantability is binary — pull the questionnaire first. Get matched with DSCR lenders who handle condos (and specifically your project type) efficiently.

Frequently asked questions