For self-employed buyers, condos have a real advantage over co-ops. There's usually no co-op-style board reviewing your tax returns, and more non-QM programs lend on condos than on co-ops. The catch with condo financing when you're self-employed is that the building itself has to pass the lender's review, and in New York a lot of buildings raise questions.
This page explains how lenders review condo buildings, what makes a building non-warrantable, how that interacts with your documentation path, and the closing costs that apply to condo purchases in New York City and on Long Island.
Non-warrantable condo loans in NYC: why the building matters
A warrantable condo is one in a building that meets Fannie Mae and Freddie Mac project standards, so a loan on it can be sold to them. A non-warrantable condo is in a building that doesn't meet those standards. Loans on non-warrantable units can't be sold to Fannie or Freddie, so they're often financed with portfolio loans held by the lender or with non-QM loans.
Common reasons a building is non-warrantable include:
- A high share of units owned by investors rather than owner-occupants
- A single person or entity owning a large number of units
- A significant amount of commercial space in the building
- Pending litigation involving the condo association
- Incomplete construction or a building still in its sponsor sell-out phase
- Budget or reserve issues that don't meet agency standards
Ask early whether the building is warrantable. It can change your loan options more than your income does.
Self-employed condo loan options by building type
Self-employed condo loan requirements come from both sides: the borrower side (documented income, credit, down payment and reserves, which vary by program) and the building side (the lender's project review). Here's how your documentation path and the building's status typically combine.
| Warrantable condo | Non-warrantable condo | |
|---|---|---|
| Full-doc (tax returns), conventional | Available if you qualify | Usually not available; a portfolio loan may be |
| Bank statement | Available in many programs | Some programs list non-warrantable condos as eligible |
| 1099 or P&L | Available in many programs | Program-specific |
| Asset-based | Available in many programs | Program-specific |
This is a general guide, not a promise. Each program sets its own building and borrower requirements, and we'll review whether a program fits your building and scenario.
Example: a real estate agent buying in a new development
A Long Island City real estate agent earns commission income and writes off car, marketing and office costs. She finds a unit in a newer building where the sponsor still owns many units, which makes it non-warrantable for now. Conventional is off the table for that building, so she compares a bank statement program that lists non-warrantable condos as eligible against a warrantable resale nearby where her tax returns might also work.
The condo questionnaire and building review
To check a building, lenders send a condo questionnaire to the managing agent or association. It asks about owner-occupancy, investor ownership, delinquent common charges, insurance, reserves, litigation, commercial space and any single owner with many units. Some lenders also want the building's budget, financial statements or insurance certificates.
Managing agents often charge a fee to complete the questionnaire, and turnaround varies. Requesting it early, ideally as soon as your offer is accepted, keeps the building review from becoming the last thing holding up your closing.
Condo boards in New York typically hold a right of first refusal rather than running a full financial review of buyers the way co-op boards do. You'll still submit a purchase application, but it's usually lighter than a co-op board package.
Condo closing costs in New York
- Mortgage recording tax. In New York City, the buyer's effective rate on condo units is about 1.8% for loans under $500,000 and about 1.925% for loans of $500,000 or more. The lender typically pays 0.25% of the stated rate. Outside NYC, recording tax still applies, at rates that differ by county; Westchester's total is 1.3%. Your loan estimate will show the figure for your property.
- Mansion tax. New York charges a 1% tax on residential purchases of $1 million or more. NYC adds a supplemental tax for purchases of $2 million and up.
- New-development terms. When you buy directly from a sponsor, the contract and offering plan set which closing costs you pay, and they can differ from a resale. Have your attorney review them.
- Common charges and taxes. Your monthly common charges and the unit's property taxes count toward debt-to-income on every documentation path.
NYC vs Long Island condos
In New York City, condos range from new-development towers to small conversions in brownstone neighborhoods. New developments are where non-warrantable issues come up most often, especially when the sponsor still owns many units or construction isn't finished. Mixed-use buildings with ground-floor retail can also run into commercial-space limits.
On Long Island, condo buyers face the same warrantable test. Lenders look at owner-occupancy, the association's finances, insurance and any litigation, whether the community is a mid-rise building or a townhouse-style development. Recording tax rates outside the city differ from NYC's, so check your loan estimate for the exact figure.
Loan size matters in both places. The 2026 one-unit conforming limit is $1,249,125 in the five boroughs and Nassau. Above that, a jumbo loan applies, with its own documentation rules.
A practical order of operations
- Know your numbers on more than one path: what your tax returns show, and what your deposits show.
- Ask the listing agent whether the building is warrantable and whether other buyers have closed with conventional financing recently.
- Get the condo questionnaire started as soon as you're in contract.
- Build the condo's recording tax and, at $1 million or more, the mansion tax into your cash to close.
- If the building turns out to be non-warrantable, review which portfolio or non-QM programs accept it before your mortgage contingency runs out.
Common questions
Can I get a condo mortgage if I'm self-employed?
Yes, many self-employed buyers finance condos. Your options depend on two things: how your income can be documented and whether the building is warrantable. Full-doc, bank statement, 1099, P&L and asset-based paths may all apply, depending on the program and the building.
What is a non-warrantable condo?
It's a unit in a building that doesn't meet Fannie Mae and Freddie Mac project standards, often because of high investor ownership, one owner holding many units, commercial space, litigation or incomplete construction. Loans on these units can't be sold to Fannie or Freddie, so portfolio or non-QM loans are usually used.
Can I use a bank statement loan on a non-warrantable condo?
Some bank statement programs list non-warrantable condos as eligible. Others don't. Requirements for the building and the borrower vary by program. We'll review whether a program fits your building and scenario before you commit.
How do I find out if a condo is warrantable?
Ask the listing agent and the managing agent early, and ask whether recent buyers closed with conventional loans. The final answer comes from the lender's review of the condo questionnaire and building documents, which you can usually start once you're in contract.
Do condo buyers pay mortgage recording tax in NYC?
Yes. In NYC, the buyer's effective rate on condo units is about 1.8% for loans under $500,000 and about 1.925% for loans of $500,000 or more. That's one major cost difference from co-ops, which aren't subject to mortgage recording tax.
Does the mansion tax apply to condos?
Yes. New York's 1% mansion tax applies to residential purchases of $1 million or more, including condos. In NYC, a supplemental tax applies to purchases of $2 million and up.
Is a condo easier than a co-op for self-employed buyers?
Often, yes. Condo boards typically don't review buyer finances the way co-op boards do, and more non-QM programs lend on condos than on co-ops. The tradeoffs are the building review and mortgage recording tax. Compare both if you're open to either.
Is it hard to get a loan if you're self-employed?
It can be harder, mainly because conventional lenders qualify you on net income after write-offs. It isn't off the table. Bank statement, 1099, P&L and asset-based programs document income differently, and many lend on condos, including some non-warrantable buildings. Expect more paperwork, and know that credit, down payment and reserve requirements vary by program.
What disqualifies you from a mortgage on a condo?
On the borrower side: income that can't be documented on any path, debts too high for that income, serious credit problems, or too little for the down payment and reserves. On the building side: a project the lender won't accept, such as one with problems its program excludes. A non-warrantable building rules out conventional loans but may still work with some portfolio or non-QM programs.
How does a mortgage contingency work?
A mortgage contingency is a clause in your purchase contract that can let you cancel and generally recover your deposit if you can't get a loan commitment by a set date. Its terms, and whether a seller or sponsor accepts one, vary by deal. Self-employed buyers should leave enough time for the condo questionnaire and income review. Your attorney should review the clause.