Why Chicago condos are different
Most national lenders avoid Chicago condos. The reason: a huge share of our buildings — vintage walk-ups, smaller boutique buildings, hotel-condos, and many North Side high-rises — fail at least one Fannie Mae or Freddie Mac project warrant.
"Warrantable" simply means the project meets agency standards: enough owner-occupants, no single-entity ownership concentration, no pending litigation, adequate reserves, and so on. Miss one item and the building is non-warrantable — which most lenders read as "decline."
We read it as "let's price it right and move on."
The seven things that make a Chicago condo non-warrantable
- Investor concentration. Over 50% of units owned by investors (or, for second-home/investment buyers, over 50% rented).
- Single-entity ownership. One owner — including a developer — controls more than 10–25% of units (varies by program).
- Inadequate reserves. HOA budget allocates less than 10% to reserves with no recent reserve study.
- Pending litigation. Especially construction-defect or structural lawsuits.
- Commercial space. More than 35% of total square footage is commercial (common in mixed-use Loop and West Loop buildings).
- Hotel/resort character. Condo-hotels, short-term rental programs, front-desk services structured like a hotel.
- Project incomplete. New construction without enough sold/closed units.
Loan options for non-warrantable Chicago condos
Stonehaven Mortgage has been a Chicago condo specialty lender for over a decade. We typically have 4–6 active investor programs at any given time that finance non-warrantable units, including:
Portfolio jumbo (most common)
Banks that hold loans on their balance sheet rather than selling them. Pricing is often within 0.125% of warrantable jumbo. Down payments start at 10–15% for primaries, 20–25% for second homes.
Bank statement & DSCR options
For investment condos and self-employed buyers. The loan qualifies on the property's rental income (DSCR) or on bank statement deposits, sidestepping tax-return analysis entirely.
Niche conforming overlays
A few investors will still buy "limited review" conforming condo loans where the project doesn't fully warrant. Best for primary-residence, well-capitalized buyers under conforming limits.
The condo questionnaire — and why it's a battleground
Every condo loan requires the HOA to fill out a questionnaire about the building. Two truths most buyers don't know:
- HOA management companies often refuse to fill out anything beyond a "limited" questionnaire, which automatically makes the loan non-warrantable in most lender systems — even if the building itself is fine.
- The questionnaire often has incorrect or outdated answers that disqualify perfectly fine buildings. We've cleared dozens of files just by getting on the phone with property management.
Before you write an offer on a Chicago condo, send us the address. We've already financed in most major buildings and can usually tell you in 24 hours whether your loan will work — and what down payment and rate to expect.
High-rise specifics: Streeterville, Gold Coast, River North, South Loop
High-rise buildings have their own tendencies. Some have heavy commercial space (Trump Tower, the Optima buildings), some have hotel components, some have litigation history. We maintain an internal Chicago project library of buildings we've closed in. Common ones we know well:
- 500 N Lake Shore Drive, 600 N Lake Shore, 600 N Fairbanks (Streeterville)
- 3 W Hubbard, 60 E Monroe (The Legacy), 235 W Van Buren (Loop)
- 1500 N Lake Shore, 1300 N Astor (Gold Coast)
- The Heritage at Millennium Park, 130 N Garland (Lakeshore East)
- Pre-war walk-ups across Lincoln Park, Lakeview, Logan Square
If your building isn't on this short list, it's likely still one we've financed in. Send us the address and we'll confirm.
Down payment and rate expectations
For a typical owner-occupied non-warrantable Chicago condo with a strong borrower (720+ FICO, 6 months reserves), expect:
- 10–15% down on loans up to $1M
- 20% down on loans $1M–$2M
- 25%+ down on loans above $2M or for second-home/investment use
- Rates within 0.125–0.25% of warrantable equivalents
- No prepayment penalty on owner-occupied financing
Send us the address. We'll handle the rest.
Free building pre-screen. We'll tell you whether the project warrants, what programs apply, and what to expect on rate and down payment — usually within one business day.
Schedule a CallFAQ
Can I do an FHA loan on a Chicago condo?
Only if the project is on the FHA-approved condo list. Very few Chicago buildings are. We can pull the list for you in seconds — and if your target building isn't on it, we'll route you to a non-warrantable conventional or portfolio program with a similar effective payment.
What if the HOA won't complete a full questionnaire?
Most lenders fail. We have programs that accept limited questionnaires by design. The deal closes.
Are pied-à-terre and second-home Chicago condos financeable?
Yes. Down payments are typically 20–25%, rates are within 0.25% of primary residence pricing. Excellent option for buyers in town part-time.