Non-Warrantable Condos in Oakland: What’s Going On—And How to Finance Them

Non-Warrantable? No Problem. We’ve Got the Loan

“As the owner of a condominium unit in Emeryville, Fran Quittel has been anxiously watching her insurance rates soar 'astronomically'... despite her building being nowhere near wildfire zones.” — San Francisco Chronicle

Across Oakland, Emeryville, and the broader East Bay, condo buildings are increasingly being labeled non-warrantable—and it’s causing serious headaches for buyers, sellers, HOAs, and real estate agents alike.

This crisis is being driven by a “perfect storm” of insurance non-renewals, tighter lending standards, and HOA budget instability. But there are solutions—and buyers can still get financing with the right guidance.

🚫 What Is a Non-Warrantable Condo?

A condo is considered non-warrantable if it fails to meet the lending guidelines set by Fannie Mae, Freddie Mac, FHA, or VA. This disqualifies it from traditional mortgage financing.

Common triggers include:

Cancelled or insufficient master insurance policies
HOA involved in active litigation
Too many investor-owned units or one party owning >10% of the complex
Low reserves or high delinquency on HOA dues

The result? Fewer financing options and lower marketability for the property.

📉 Why Oakland & Emeryville Are Seeing More Non-Warrantable Condos

According to the San Francisco Chronicle, insurance carriers are pulling out of California condo markets altogether—not just in wildfire-prone zones.

Even communities like Emeryville’s Watergate complex and Jack London Square are affected.

What’s fueling the crisis?

🔥 Skyrocketing insurance premiums
📉 Master policies being cancelled or non-renewed
💸 HOAs unable to afford new coverage
🏦 Lenders red-flagging buildings without coverage

📖 Read the SF Chronicle article here

🏛️ State-Level Relief—But It’s Limited

California has taken some action, including:

SB 824 – 12-month non-renewal moratorium in wildfire ZIP codes
Catastrophe Modeling Regulations – Requires insurers to write policies across at least 85% of ZIP codes

Still, most HOAs remain under pressure, and the road to full market stabilization is uncertain.

🏦 How to Finance a Non-Warrantable Condo

The good news? Financing is still available.

At Fresh Home Loan, we work with lenders that offer Non-QM and portfolio loan options tailored to non-warrantable condos.

Financing Options:

Loan Type

Highlights

Portfolio Loans

Held by private banks—ideal for unique or riskier properties

Non-QM Loans

Flexible guidelines, great for self-employed and non-traditional borrowers

Hard Money Loans

Short-term, fast funding when speed matters

We close these loans every day, and we’re ready to guide you through the process.

✅ What Buyers, Agents & HOA Owners Should Do

Buyers:

Get pre-approved with a broker who understands non-QM loans
Request HOA docs early to avoid surprises during escrow

Agents:

Ask about the building’s insurance status, reserves, and owner-occupancy
Prep your buyers for financing challenges in advance

HOA Members & Owners:

Prioritize securing or renewing master insurance
Improve reserve funding and reduce litigation risks
Be transparent with all parties about the building’s financial health

🛠️ How Fresh Home Loan Can Help

At Fresh Home Loan, we specialize in tough-to-finance properties—including non-warrantable condos.

Whether the challenge is:

Missing insurance
High investor ownership
Low reserves
Pending litigation

…we have the non-QM and portfolio lenders that will get your deal closed.

🏢 Non-Warrantable Condo Loan Highlights

Occupancy Type

Max LTV

🏠 Primary Residence

Up to 90% LTV – Yes, only 10% down!

🏖️ Second Home

Up to 90% LTV – Think Tahoe, the coast, or a mountain escape

💼 Investment Property

Up to 85% LTV – Expand your rental portfolio

AND:

❌ No reserve requirements
❌ No limits on investor concentration
❌ No HOA delinquency restrictions

✨ Other Loan Programs Available

🌎 Foreign National & ITIN Loans
📓 Bank Statement Loans – Perfect for self-employed borrowers
🏠 DSCR Loans – Qualify based on rental income, no tax returns needed

🧭 Final Thoughts

The East Bay condo market may be complicated, but it’s far from closed. With the right loan strategy and partners, you can still buy, sell, and invest with confidence.

If you're facing a non-warrantable condo situation, don’t let it derail your deal. Let’s talk.

💬 Reach Out to Fresh Home Loan

Garrick Werdmuller
Independent Mortgage Broker
DRE 01368202 | NMLS 242952
📞 510.282.5456
📧 garrick@freshhomeloan.com
🌐 freshhomeloan.com
🏢 1151 Harbor Bay Parkway, Suite 136, Alameda, CA 94502

All loans subject to lender approval. Rates and terms subject to change. Fresh Home Loan Inc. is an Equal Opportunity Mortgage Broker. CA DRE #02137513 | NMLS #2124104

#NonWarrantableCondo #OaklandCondos #AlternativeLending #DSCRLoan #BankStatementLoan #ITINLoan #SecondHomeLoan #InvestmentLoan #CondoFinancing #FreshHomeLoan #RealEstateFinancing

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Garrick Werdmuller

510-282-5456

garrick@freshhomeloan.com

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