You found a condo that rents well. Before the loan can close, the HOA has to answer a set of questions about the building. Here is what they ask and why it matters.
In short: A condo questionnaire is a form completed by the HOA or its management company that tells the lender how the building is run: owner-occupancy ratio, dues delinquencies, litigation, insurance, reserves and commercial space. DSCR lenders use it to decide whether a condo is warrantable and how much they will lend. Non-warrantable condos can often still be financed, usually with lower leverage and different pricing.
The exact form varies, but most cover the same ground. Each answer tells the underwriter something about the building’s financial health.
| Question area | Why it matters |
|---|---|
| Owner-occupied vs rented units | Heavy investor concentration can signal a riskier building |
| Dues delinquent 60+ days | High delinquency strains the HOA budget |
| Pending litigation | Lawsuits, especially over construction defects, can lead to special assessments |
| Master insurance coverage | The building must be adequately insured |
| Reserve fund and budget | Thin reserves raise the odds of future assessments |
| Single-entity ownership | One owner holding many units adds concentration risk |
| Commercial space | A large commercial share can push the property outside standard guidelines |
| Short-term rental and hotel features | Front desk, rental pools or nightly stays can make it a condotel |
A warrantable condo meets a standard set of building guidelines. It gets the best leverage and pricing a DSCR program offers.
A non-warrantable condo fails one or more of those tests. Common reasons are pending litigation, high delinquencies, too much commercial space or single-entity concentration. Many DSCR programs still lend on these, which is a major advantage over conventional financing.
This example is illustrative. You are buying a $260,000 condo to rent at $2,100. The questionnaire comes back showing 18% of units are more than 60 days behind on dues.
That exceeds the standard limit, so the condo is treated as non-warrantable. Instead of 80% LTV, the program offers 75%. The loan drops from $208,000 to $195,000, and you bring $13,000 more to closing.
The payment also falls a little with the smaller loan, so the DSCR improves. The deal still closes. It just costs more cash.
Management companies set their own fees and turnaround times. Some respond in days; others take a couple of weeks.
Order it as soon as you are under contract. A slow questionnaire is one of the most common reasons condo closings slip. Ask your agent who manages the building and get the contact on day one.
Some programs accept a short-form questionnaire for certain buildings, while others require the full form with budget and insurance documents attached. Which one you need depends on the program, the building and sometimes your leverage.
A higher down payment can sometimes reduce the documents required. If the HOA is slow or reluctant, ask your loan officer whether a shorter review is possible on your deal. It can save a week or more on the closing timeline.
Condo rules differ more across programs than almost anything else. A building one source declines may be routine for another.
Send us the condo address and any HOA documents you have. Our financing team can bring you 2–3 options and tell you early whether the building is likely to be warrantable.
Most do. The questionnaire is how the lender confirms the building meets its guidelines, and it is required on most condo purchases and refinances.
The HOA or its management company completes it. You or your loan officer request it, and the management company usually charges a fee.
Often, yes. Many DSCR programs finance non-warrantable condos, usually at lower leverage and somewhat higher pricing.
Common causes include pending litigation, high dues delinquency, a large commercial share, single-entity concentration, or hotel-style operations.
A condotel is one kind of non-warrantable condo, with hotel features like a front desk or rental pool. Fewer programs finance them, and terms are more restrictive.
It depends on the management company. Some return it within days and others take a couple of weeks, so order it right after you go under contract.
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