Buying a California Condo

It’s important that you speak with a condo specialist when financing an Orange County, California condominium. There are many factors that should be considered when determining which condo loan or loans will be eligible for the condo that you are interested in purchasing or refinancing.

buying a condo or condotel in California

RTC Mortgage specializes in Orange County condominium financing – if you are planning to finance a condo in any of the 40 cities in Orange County, California let one of our experienced loan officer’s quote you a low condo rate from one of our many condo loan programs.

The 3 California condo classifications are:

California Condominium – Warrantable

California Condominium – Non-warrantable

California Condotel

California Condominium – Warrantable
The warrantable condo classification is for condos that meet “Agency” guidelines. The following loan programs are considered “Agency” loans: Fannie Mae, Freddie Mac, and most government loan programs such as FHA, VA, and USDA. There are multiple factors that determine if a condo is financeable with an “Agency” loan. To determine if an Orange County, California condo is warrantable, your RTC Mortgage loan officer will review the condo documents provided by the subject condo’s property manager.

California Condo Documents
In order for a condo to be classified as “warrantable,” the subject condo property manager will complete the bank’s condo questionnaire: Fannie Mae Form 1076 or Freddie Mac Form 426. See “non-warrantable condo” for potential issues with the Forms 1076 and 426 that will require your condo to be financed with a non-warrantable portfolio condo loan.

California Condominium Non-warrantable
Non-warrantable condos are not eligible for the “Agency” loan programs that warrantable condos are approved for. Your Orange County RTC Mortgage loan officer will determine which classification your condo falls under. If your condo is classified as non-warrantable, you will be offered one of RTC Mortgage’s portfolio loan programs with a competitive rate.
The following information reported on Form 1076 or 426 will classify an Orange County condo as non-warrantable:
One owner owns more than 20% of the total units in the project.
Pending litigation against the HOA. Not all pending lawsuits will classify a condo as non-warrantable.
More than 10% of the owners are delinquent on HOA fees
The condo possesses some hotel-like amenities such as a registration desk and the HOA requires the owners to make their unit available for rental pooling (daily rentals). Just because a condo allows daily rentals doesn’t automatically classify the condo as non-warrantable.

California Condotel
A Condotel is a term used to describe a condo-hotel. A condotel possesses some hotel-like amenities such as a front desk for checking in and out, and an activities or concierge desk.

RTC Mortgage proudly offers financing options for all California condo classifications. Visit our Condo Loan Programs page for more information.