Securing a jumbo loan for $2.2M non-warrantable luxury condo

As a loan consultant at Milo, there are few things more rewarding than making dreams come true for clients, particularly when they've been told "no" elsewhere. Each client comes to us with their unique financial situation, and navigating those complexities is part of my job I relish the most.

One memorable couple was making a big cross-country move from sunny California to beautiful Naples, Florida. They were an extremely qualified pair, boasting an excellent credit score and two years of fully documented healthy income.

Their financial acumen was demonstrated by a diverse portfolio, which included a notable $2 million tucked away in cryptocurrency on Binance. They initially turned to Milo because of our unique approach to crypto as an asset, allowing customers to secure a mortgage by pledging their crypto assets as collateral.

Actual apartment not pictured.

The couple had their hearts set on an upscale condo in Naples, valued at $2,195,000. However, the property was a non-warrantable condo, a term referring to a property that does not meet certain risk-related criteria as defined by Fannie Mae and Freddie Mac, which is cause for concern for most lenders. In this case, the condo owners were required to join a third-party gym in the building, as part of their HOA fees. This stipulation rendered the property non-warrantable.

Furthermore, the property was too expensive for a conventional conforming loan—the type of mortgage that is less than or equal to the loan limit set by the Federal Housing Finance Agency (FHFA). The 2023 conforming loan limit is $726,200 for most counties (NerdWallet). Their dream home exceeded this limit, thus requiring a jumbo loan. These loans are viewed as riskier since they aren't guaranteed by Fannie Mae and Freddie Mac, leaving lenders unprotected if a borrower defaults.

Another lender had already denied the couple due to the non-warrantable condo status and the jumbo loan requirement. Despite these hurdles, I was excited about the opportunity to navigate these complexities for them.

Working against the clock, with only 30 days to close, we buckled down. Through diligent work and Milo's robust approach, we secured approval for both the non-warrantable condo and the jumbo loan. This allowed the couple to put down a healthy 30% deposit on their dream home, financed by a debt-to-income loan.

This story underscores the importance of having a thorough understanding of not just your own financial health but also the nuances of the property you're interested in. It's not always a straightforward path, but with the right expertise and determination, finding a way is often possible. I'm proud that we at Milo were able to help this couple secure their dream home.

Need a loan to purchase or refinance a non-warrantable condo? We have the expertise to help. Schedule a call with me today.

The opinions expressed in the Blog are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.