David and Sarah M., a professional couple ages 38 and 36 working in Fort Lauderdale’s financial services sector, had owned their luxury two-bedroom condo in the Riverside Hotel building for four years while building careers and financial stability. David earned $125,000 as a financial analyst, and Sarah earned $98,000 as an accountant—combined W-2 income of $223,000 with excellent employment security. As homeowners (Step 3), they monitored mortgage markets and noticed non-warrantable condo rates had decreased substantially below their original purchase rate secured four years earlier.

Their Riverside Hotel condo (purchased for $520,000, now valued at $575,000) had appreciated $55,000 while they’d paid their mortgage from $415,000 to $385,000—building substantial equity and proving financial responsibility through perfect payment history. Their current mortgage carried a rate significantly higher than current market conditions. Refinancing would reduce their monthly payment by approximately $565 and save roughly $6,800 annually—meaningful optimization for their largest monthly expense.

However, traditional lenders rejected refinance applications because the Riverside Hotel building was non-warrantable under Fannie Mae/Freddie Mac guidelines due to 53% investor concentration. Despite their perfect qualifications, strong equity position, and the building’s excellent condition, conventional refinancing was unavailable.

“We’ve paid perfectly for four years, built $190,000 in equity, and earn $223,000 combined,” David explained. “When rates dropped, refinancing was obvious. But traditional lenders rejected us because our building has 53% investor concentration—3% above their threshold. That had nothing to do with our payment ability or the building’s quality.”

David and Sarah needed a non-warrantable condo loan refinance—rate-and-term refinancing for condos not meeting Fannie Mae/Freddie Mac warrantability, rewarding responsible homeowners with improved terms despite technical disqualifications.

Facing similar challenges? Schedule a call to explore refinance options.

Why Couldn’t David and Sarah Refinance Through Conventional Lenders?

David and Sarah’s situation illustrated frustrations for homeowners in non-warrantable buildings: perfect qualifications and payment history don’t override warrantability requirements.

Conventional refinance limitations:

• Must meet Fannie Mae/Freddie Mac warrantability (50% max investor concentration)
• Perfect payment history doesn’t override warrantability requirements
• Building quality irrelevant if warrantability fails
• Substantial equity doesn’t compensate for technical disqualifications

Their Riverside Hotel building was excellent in every objective measure: 60% funded HOA reserves, minimal 1.5% delinquencies, professional management, no litigation, exceptional maintenance, prime downtown location. The 53% investor concentration—merely 3% above threshold—reflected the building’s appeal to investors recognizing strong rental demand, not quality problems.

“Our building is objectively excellent,” Sarah said. “Strong HOA finances, no issues, perfect maintenance, downtown location. But Fannie Mae excludes it because 53% of owners are investors rather than 50%. That 3% difference had nothing to do with building quality, our creditworthiness, or actual lending risk.”

Ready to optimize your non-warrantable condo mortgage? Schedule a call.

What Documentation Was Required for This Non-Warrantable Condo Refinance?

David and Sarah worked with their non-warrantable specialist to document their qualifications for rate-and-term refinancing.

Documentation provided:

• Two years W-2s ($223,000 combined income)
• Two years tax returns
• Recent pay stubs
• 782/778 credit scores
• Four years perfect mortgage payment history
• Current mortgage statement ($385,000 balance)
• Bank statements showing substantial reserves
• HOA documents (budget, reserves, minutes)
• Building master insurance
• Homeowners insurance (HO6)
• Condo questionnaire

Streamlined approval:

1. Consultation (Day 1) – Non-warrantable refinance discussion
2. Application (Days 2-5) – Income, credit, asset verification
3. Payment history (Days 6-7) – Four years perfect payments confirmed
4. HOA review (Days 8-14) – Building financial analysis
5. Appraisal (Days 15-22) – Condo appraised at $575,000
6. Underwriting (Days 23-35) – Comprehensive analysis
7. Approval and closing (Days 36-42) – Funded refinance

The lender approved based on strong $223,000 combined W-2 income, perfect 782/778 credit scores, four years flawless payments, conservative 67% LTV ($575K value minus $385K balance), excellent HOA finances despite investor concentration, and overall low-risk profile.

Ready to refinance? Submit inquiry.

What Were the Final Results?

David and Sarah successfully refinanced, capturing substantial rate improvement and immediate payment reduction.

Final details:

• Loan amount: $385,000 (rate-and-term, no cash-out)
• Property value: $575,000
• Equity preserved: $190,000
• Competitive non-warrantable rates – Non-Warrantable Condo Loan Refinance calculator
• Monthly savings: ~$565 payment reduction
• Annual savings: ~$6,800 in reduced interest
• Lifetime savings: $50,000+ over remaining term
• Investor concentration: 53% (3% above conventional threshold)

“The non-warrantable refinance optimized our largest expense,” Sarah explained. “We’re saving $565 monthly—$6,800 annually—while maintaining full equity. Over the remaining term, we’ll preserve over $50,000 through reduced interest costs. Those savings accelerate other goals—our children’s education funds, retirement accounts, and eventually a larger home.”

When ready for their next move, they may use non-warrantable cash-out refinancing or other strategies.

Ready to optimize your mortgage? Get approved or schedule a call.

Key Takeaways

• Non-warrantable refinancing captures rate reductions despite warrantability issues—David and Sarah reduced rate with 53% investor concentration
• Perfect payment history strengthens applications—four years flawless payments proved reliability
• Rate-and-term preserves full equity—$190K equity maintained
• Monthly savings compound into substantial long-term wealth—$565/month = $6,800/year = $50K+ lifetime
• Strong income and credit streamline approvals—$223K income with 782/778 scores

Have questions? Schedule a call.

Alternative Programs

If a non-warrantable condo refinance isn’t perfect:

• Non-Warrantable Cash-Out – Access equity while refinancing
• Conventional Refinance – If building becomes warrantable

Explore all loan programs.

Resources

Learn more:

• Non-Warrantable Condo Guide
• Refinance Calculator

Similar stories:

• Non-warrantable purchase
• Non-warrantable cash-out

External resources:

• Fannie Mae Condo Standards

Need local expertise? Get introduced to partners including condo-specialist realtors and HOA advisors.