Investment Property Condos
An investor borrower can qualify financially while the condominium project itself creates a separate eligibility problem.
Two approvals in effect
Evaluate both the borrower/loan and the condo project.
Project review
Agency condo eligibility can involve insurance, critical repairs, litigation, budgets, reserves and other project characteristics.
Investor concentration
Do not assume a condo is eligible simply because other investors own units there.
Alternative financing
A non-warrantable condo may have private-investor options, but those rules are product-specific.
Underwrite the project and investor separately
Credit, income and reserves can be excellent while condo project eligibility fails. STR use can add another layer of HOA/project and income-documentation risk.
Documents I would gather before calculating rental income
Current mortgage statements/PITIA for every retained property; Schedule E and applicable tax returns; leases; purchase closing statements and acquisition dates; appraisals or rent schedules when applicable; proof of current housing payments; insurance/HOA information; entity documents if an LLC is involved; and evidence of reserves. The correct calculation depends on what the property is and when/how it was acquired.
Common investor-loan mistakes
Calling 75% of rent 'income' without subtracting PITIA; using a lease when current agency policy requires another rent source; adding positive rental income when it is only allowed to offset housing expense; confusing cap rate with DSCR; applying a private investor's seasoning rule to Fannie/Freddie; and assuming an LLC-owned mortgage is counted the same as a personally obligated mortgage.
Primary sources to verify
- Fannie Mae — General Rental Income
- Fannie Mae — Investment Property Purchased Within 45 Days
- Fannie Mae — Multiple Financed Properties
- Freddie Mac — Investment Property Mortgages
Last reviewed September 15, 2026.