Condo financing

[John Alba]

Hello to the bigger pockets community. I am in the process of buying a condo in the Coral Springs,  FL area. I spent time looking for the condo got pre-approved by my lender. At last minute my lender informed me that they would not lend money to a community that is 15% or more of rentals. I was counting with a 20% down payment but the another lender I reached out is asking 25%. I don't want to do, I simply don't have 25% what would you guys recommend? Is this common practice? 

Thanks 

[Upen Patel]

@Bryan Weschler Conventional financing (Fannie, Freddie, FHA, VA, USDA) for a condo requires that the condo (meaning the condo association) be warrantable. There are many different nuances so I am not going to get into every one, and there are some differences between the agencies. Some elements that will make a condo non-warrantable are:

* High investor ratio

* Insufficient reserves/Bad financials

* Litigation

* Buying as investment vs primary/2nd

When the condo is deemed non-warrantable for the specific transaction, then the only financing option left is a non-warrantable condo portfolio loan.

Hope this helps.