Financing a Walnut Creek Condo: What You Need to Know
Financing a Condo Isn’t Quite Like Buying a House
If you’ve started looking for a condo in Walnut Creek, you’ve probably realized it’s not just the property that needs approval — it’s the building too. Condo financing has its own set of rules, requirements, and potential pitfalls that can surprise even experienced buyers.
But don’t worry — with the right preparation and guidance, getting a loan for a condo in 2025 is absolutely doable.
This guide breaks down what lenders look for, what makes some condos “non-warrantable,” and how to position yourself for a smooth, successful closing.
The Basics: How Condo Loans Work
When you buy a condo, you’re not just buying a unit — you’re also buying into a shared interest in the building and its HOA. That means your lender will evaluate:
The financial health of the HOA
The number of owner-occupied vs. rented units
Whether the HOA is involved in any pending litigation
The adequacy of insurance coverage on the building
If the building passes these tests, your loan is considered “warrantable,” meaning it meets Fannie Mae and Freddie Mac standards. If not, it’s “non-warrantable,” which can limit your financing options.
What Makes a Condo “Non-Warrantable”?
Some otherwise desirable communities in Walnut Creek fall into the “non-warrantable” category. Common reasons include:
More than 50% of units being rentals
Inadequate reserves or delinquent HOA dues
Pending construction defects or lawsuits
One owner controlling more than 10% of units
Commercial space exceeding 35% of the property
If a condo is non-warrantable, you can still finance it — you’ll just need to work with a lender who specializes in portfolio or non-agency loans.
Financing Options for 2025
1. Conventional Loans
Still the most common choice. Rates are competitive, but you’ll need at least 5% down (often 10%+ for condos) and the building must be warrantable.
2. FHA Loans
These can be great for first-time buyers — but the condo complex must be FHA-approved. Not all Walnut Creek communities qualify, so check this early.
3. VA Loans
A top choice for veterans and active-duty service members. Like FHA, the project must be VA-approved, but the terms can be excellent.
4. Non-Warrantable / Portfolio Loans
These are offered by local banks and credit unions that keep loans in-house. They’re often the only option for buildings with financing challenges.
What Buyers Should Do Before Making an Offer
Get Pre-Approved with a Lender Experienced in Condos
Not all lenders understand the nuances of condo underwriting. Work with someone who’s handled local HOA reviews before.Ask for the HOA Docs Early
Review the reserve study, insurance policies, and meeting minutes to spot red flags before you fall in love with a property.Plan for Slightly Higher Rates or Fees
Condo loans can carry a small rate adjustment compared to single-family homes — it’s normal and factored into your affordability.Consider Resale Financing
Think ahead. If you ever sell, a non-warrantable condo may shrink your buyer pool. Choose a community with long-term lending stability.
Walnut Creek’s Lending Landscape
Because Walnut Creek attracts such a diverse mix of buyers — from retirees to professionals — local lenders are used to dealing with condo financing. Many East Bay banks even have pre-approved building lists, which can make the process much easier.
And since many of the area’s most popular communities (like The Mercer, Montecito, and The Keys) are already well-established, most are fully warrantable with healthy HOAs.
Related Reading
For a deeper dive into choosing the right community and assessing HOA quality, explore:
The Bottom Line
Buying a condo in Walnut Creek requires a little more due diligence — but with the right lender, property, and team behind you, financing can be straightforward.
In 2025, condo loans are more accessible than ever, and Walnut Creek remains one of the East Bay’s most stable and rewarding condo markets.
If you’re thinking about buying and want to review current loan options, connect with me today.
Start your Walnut Creek condo search on RealScout.