Thinking about buying or selling a condo in Kirkland and keep hearing the words warrantable and non-warrantable? You are not alone. In a market where condo inventory has grown around the Eastside, how a building qualifies for financing can shape your buyer pool, your loan options, and your timeline. In this guide, you will learn what warrantable means, how lenders decide, and what to do if a condo is not warrantable. Let’s dive in.
Warrantable vs. non-warrantable: The basics
A condo is warrantable when it meets the project standards used by Fannie Mae and Freddie Mac. That usually means more lender options, lower down payments, and smoother underwriting for conventional loans. Fannie Mae’s condo eligibility page outlines these rules.
A condo is non-warrantable when it fails one or more of those standards. Buyers may face higher down payments, fewer lenders, or specialty programs. Many of these loans come from portfolio or non-QM lenders rather than standard conventional financing. This lender overview of non-warrantable condos explains the tradeoffs.
Why this matters in Kirkland
Recent Eastside reporting shows condo inventory rose in 2024 and into 2025, with mixed pricing depending on the submarket. More choices can put a spotlight on financeability. If a building limits access to conventional, FHA, or VA loans, it can shrink your buyer pool and slow negotiations. See a recent Eastside snapshot in this local market update.
What lenders look for
Most conventional lenders follow Fannie Mae and Freddie Mac project rules. Common checkpoints include:
- Owner occupancy: Many programs expect a majority of owner-occupied units, depending on the review path. See Fannie guidance.
- Commercial space: Projects generally limit commercial square footage, often around 35 percent. See typical thresholds.
- Single-entity ownership: Caps on how many units one investor can own, commonly 10 to 25 percent. More on project eligibility.
- HOA finances and reserves: Review of budgets, delinquencies, and reserve funding. Many lenders look for at least some dedicated reserves or an acceptable reserve study. Program overview.
- Insurance: Adequate master insurance with the right coverage and endorsements. Standards tightened after high-profile building failures. Master insurance requirements.
Common red flags that make a condo non-warrantable
- Developer control is not yet turned over to owners or the project is incomplete. Typical triggers.
- High investor or short-term rental usage that lowers owner occupancy. Common issues.
- Excess commercial or hotel-like operations that push the project beyond residential use. Ineligible features.
- Concentrated ownership where one entity owns too many units. Project limits.
- Material litigation, deferred maintenance, or inadequate reserves/insurance. Eligibility focus areas.
How to check a Kirkland condo’s status
- Ask your lender to run the project through Fannie Mae Condo Project Manager (CPM) and Freddie Mac’s tools. If CPM flags a project as unavailable, conventional financing will be difficult. Learn how lenders use project reviews.
- For FHA buyers, check whether the building is already approved or if a single-unit (spot) approval could work. FHA condo programs and approvals.
- Review the HOA’s Washington resale certificate and financials to see if the building meets program standards. Details below.
Washington resale certificate: What to expect
Under Washington’s Condominium Act, sellers must provide a resale certificate with key HOA information, including assessments, delinquencies, budgets, reserves, insurance, and pending special assessments. Lenders rely on these documents to underwrite condo loans. Ordering the resale certificate early helps keep your timeline on track. Read the statute overview.
Financing options if a condo is non-warrantable
If a project does not meet Fannie Mae or Freddie Mac standards, you still have paths to close.
- Portfolio lenders and local credit unions: These lenders keep loans on their books and set their own criteria. Expect larger down payments and strong credit. See common non-warrantable loan features.
- Non-QM and specialty lenders: Programs vary widely on down payment, rates, and documentation. Some accept alternatives like bank statements. Overview of non-warrantable programs.
- FHA single-unit approval: If you are FHA-eligible, your lender may request a spot approval when the HOA can provide required documents such as HUD-9991, budgets, reserves, and insurance. How single-unit approvals work.
- Cash or bridge financing: Some buyers use cash, private funds, or a short-term bridge, then refinance if the project becomes warrantable later. Bridge and specialty options.
What it might cost
Non-warrantable programs often require 15 to 30 percent down for owner-occupied purchases, sometimes more for investors, with higher rates and fewer lender choices. Terms vary by lender and product, so get written scenarios from multiple sources. Typical lender expectations.
Steps for buyers in Kirkland
- Check CPM early. Ask your lender to run Fannie Mae’s Condo Project Manager and Freddie’s tools before you write an offer. About project review tools.
- Collect the HOA package. Order the Washington resale certificate, plus the budget, reserve study, insurance declarations, and any litigation disclosures. Resale certificate details.
- Explore backup financing. If conventional is not available, ask about FHA single-unit approval and compare quotes from portfolio and non-QM lenders. FHA spot approval guide.
- Protect your timeline. Use financing contingencies tailored to the condo’s status and allow time for HOA document reviews or spot approvals.
Steps for sellers and HOAs
- Prepare documents up front. Have the resale certificate, budget, reserve study, insurance dec page, and meeting minutes ready. This reduces surprises in underwriting. Washington requirements.
- Strengthen reserves and insurance. If low reserves or coverage gaps are blocking loans, consider a reserve funding plan and work with insurance advisors to secure compliant master coverage. Master policy expectations.
- Document repairs and safety work. Projects with critical deferred maintenance can be labeled ineligible until issues are addressed. Provide clear repair scopes, timelines, and invoices. Eligibility focus areas.
The insurance factor after Surfside
Insurance standards tightened nationwide after high-profile failures. Some condo projects now show as unavailable in lender tools due to insurance or maintenance concerns, which can reduce eligible buyer pools and delay closings. If you are buying or selling, reviewing the master policy and any recent renewals is essential. Context on insurance and condo lending and master policy requirements.
Make your move with confidence
Whether you are eyeing a waterfront mid-rise near downtown Kirkland or a quiet inland community, the key is to verify project status early and plan your financing path. If conventional is not an option, widen your lender search, consider FHA single-unit approval, and build time into your offer for documentation.
If you want a clear, data-backed game plan tailored to Kirkland, connect with CJ Singh for local guidance, real-time MLS access, and curated opportunities.
FAQs
What does warrantable mean for a Kirkland condo?
- It means the building meets Fannie Mae and Freddie Mac project rules, which keeps most conventional loan options open. Lenders verify this with project reviews and tools like Fannie Mae’s CPM. Program overview.
How can I quickly check if a condo is financeable with a conventional loan?
- Ask your lender to run Fannie Mae’s Condo Project Manager and Freddie’s project tools. If CPM shows unavailable, conventional financing is unlikely without fixes. How lenders review projects.
Can I use FHA if the building is not FHA-approved?
- Possibly. Your lender can request an FHA single-unit approval if the project meets criteria and the HOA supplies documents like HUD-9991, budgets, reserves, and insurance. FHA single-unit approval guide.
What down payment should I expect for a non-warrantable condo?
- Many programs require 15 to 30 percent down for owner-occupied purchases, with higher down payments for investors. Terms vary by lender. Typical program expectations.
What can an HOA do to improve warrantability?
- Increase reserve funding, secure acceptable master insurance, address deferred maintenance, and keep transparent financial and legal records for underwriters. Master insurance expectations.
