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Mbanc NMLS #38232 | Equal Housing Opportunity Lender
Condo Eligibility for Bank Statement Loans
Condominiums are eligible for bank statement loans under Mbanc’s programs. The LTV limit for condominiums is capped at 85% on the Prime Ascent program — the same as the overall program maximum.
This means: if your credit score, loan amount, and state qualify you for 85% LTV on a standard property, condominiums don’t reduce that further. The 85% cap applies to all property types.
Warrantable vs Non-Warrantable Condominiums
Warrantable condominiums meet Fannie Mae and Freddie Mac project eligibility guidelines. These typically have owner-occupancy rates above 50%, no single entity owning more than 10% of units, and no active litigation. Warrantable condos are straightforward for bank statement loan approval.
Non-warrantable condominiums don’t meet agency guidelines. Common reasons include:
– Low owner-occupancy (high percentage of investors)
– Hotel-style management or rental programs
– Incomplete construction
– Unresolved HOA litigation
– Commercial space exceeding allowable limits
Non-warrantable condos may still be eligible under Non-QM programs but require review. Confirm your specific condo project’s eligibility with your loan officer before proceeding.
Condotels — The Hotel-Condo Distinction
A condotel is a property that functions both as a condominium and as a short-term rental hotel unit. Think of oceanfront or resort developments where individual units can be owner-occupied or put into a rental pool managed by a hotel operator.
Prime Ascent Plus program: Condotels are eligible with a maximum 85% LTV and maximum $2,500,000 loan amount.
Prime Ascent program: Condotels are eligible with an 85% max LTV and $2,500,000 maximum.
This is important for buyers in Miami, Fort Lauderdale, Orlando, and other Florida markets where condotel structures are common in resort and waterfront developments.
Rural Condominiums
Rural condominiums — properties in rural classifications by USDA or lender definition — have a maximum LTV of 80% for purchases and 75% for refinances. This is a program-wide rural property restriction, not specific to condos.
State-Specific Condo Notes
In Florida (and IL, NJ, NY, CT state overlay markets), the state overlay limits apply to condominiums the same as to other property types: maximum 85% purchase LTV, 80% refinance LTV, maximum $2,000,000 loan amount.
Frequently Asked Questions
Can I get a bank statement loan for a condo in Miami?
Yes. Condominiums in Miami are eligible for bank statement loans. Maximum LTV is 85%. Condotel structures in Miami follow specific program guidelines — confirm your property type with a loan officer.
What is the maximum LTV on a condo bank statement loan?
85% LTV maximum on the Prime Ascent program — the same as other eligible property types. Condotels are capped at 85% as well.
Are non-warrantable condos eligible?
Some non-warrantable condominiums may be eligible under Non-QM programs. Eligibility requires project review. Contact Mbanc to assess your specific condo project.
Do I need a condo questionnaire or HOA documents?
Yes. The underwriting process for condo purchases includes a review of the HOA budget, reserves, owner-occupancy rate, litigation status, and other project characteristics. Your loan officer will advise on what’s needed.
Does the bank statement loan process take longer for condos?
Slightly. The condo project review adds a step that single-family purchases don’t require. Plan for 25–35 days versus 21–30 days for standard single-family homes.
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About the Author
Mayer Dallal is the Managing Director of Mbanc (Mortgage Bank of California, NMLS #38232), a consumer-direct Non-QM lender specializing in bank statement loans, DSCR loans, and asset utilization programs for self-employed borrowers and real estate investors. Mbanc is licensed in 24 states for primary residence lending and 46 states for investment property financing.
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Mbanc NMLS #38232 | Equal Housing Opportunity Lender
| Mortgage Bank of California
