which program can do temp buydown for non-warrantable condo?
AmWest Advantage Program is the only program in the reviewed guidelines that explicitly permits both temporary buydowns and non-warrantable condos within the same program. This is a narrow combination — most programs prohibit one or both features.
AmWest Advantage Program — Best Match
Temporary Buydown Eligibility (core Advantage Program):
- Eligible occupancies: Owner-Occupied Primary Residences, Second Homes, and Investment Properties
- Eligible property types: 1-4 Unit, SFR, Condos, PUDs (Manufactured Homes ineligible)
- Buydown structures: 2-1 and 1-0; 12- or 24-month terms
- Products: 30-year Fixed Rate and 7/6 SOFR ARMs only
- Funding sources: Seller/Builder, Lender/Creditor, or Third Party
- Restriction: "Buydown option not allowed" on Interest Only option
Non-Warrantable Condo Eligibility (Advantage Program matrix):
- "Non-warrantable condos are further restricted – Subject to AmWest Pre-Approval"
- LTV limits by occupancy and loan amount :
| Occupancy | Max Loan | Max LTV | Max C/O LTV | Min. FICO |
|---|---|---|---|---|
| Primary Residence | $1,000,000 | 65% | 45% | 700 |
| Primary Residence | $1,500,000 | 60% | 45% | 720 |
| Primary Residence | $2,000,000 | 55% | 45% | 720 |
| Second Home | $1,000,000 | 60% | 45% | 700 |
| Investment | $1,000,000 | 50% | 45% | 700 |
Combining both features — underwriting notes:
- The guidelines do not explicitly combine or exclude these two features together; both are permitted separately under the core Advantage Program
- Buydown must be structured on the 30-year fixed or 7/6 ARM (non-I/O) when paired with a non-warrantable condo
- Non-warrantable condo requires AmWest pre-approval prior to submission
- AmWest Bank Statement Advantage follows the same condo structure — non-warrantable condos subject to pre-approval and LTV restrictions, with temp buydown eligibility for condos
Programs That Explicitly Prohibit Temp Buydown
| Lender / Program | Rule |
|---|---|
| JMAC Lending — Limited Doc | "Temporary Buydown / Leasehold: Not Allowed" |
| JMAC Lending — Newport DSCR | "Temporary Buydown / Leasehold: Not Allowed" |
| Greenbox — All Programs | "Temporary interest rate buydowns (e.g., 3-2-1, 2-1, or 1-0 structures) are strictly prohibited for all GreenBox loan programs." |
Programs That Allow Temp Buydown But Block Non-Warrantable Condos
| Lender / Program | Rule |
|---|---|
| AmWest Advantage Investor Plus | Non-Warrantable Condos listed as Ineligible Property Type |
| AmWest ITIN Advantage | "Non-Warrantable Condo" listed as Ineligible Property Type |
| AmWest Freddie Mac Conforming / Super Conforming | "Nonwarrantable Condo" listed as Ineligible Property Type |
| Mega Capital HELOC | "Non-Warrantable Condominiums" listed as ineligible; "Temporary Buydown" listed as Ineligible Transaction |
| Nations Direct HomeReady | "Non-Warrantable Condo, Condo-tels, Co-Ops, Manufactured Condos" listed as Ineligible Properties |
AD Mortgage Non-QM Super Prime / Prime — Unconfirmed
AD Mortgage's Non-QM TBO eligibility matrix lists temp buydowns (3-2-1, 2-1, 1-0) as available on Super Prime and Prime programs for condos on 30-year fixed rate purchase transactions — however, the TBO matrix lists "Condos" as an eligible property type without distinguishing warrantable from non-warrantable. Non-warrantable condo eligibility under these programs could not be confirmed from available guidelines and would need to be verified directly with AD Mortgage.
Conditions / Follow-Up
- Submit AmWest Advantage non-warrantable condo files only after receiving AmWest pre-approval — this is a hard pre-condition per the matrix
- Confirm the buydown + non-warrantable condo combination with AmWest operations or underwriting at submission given the pre-approval requirement
- For AD Mortgage Super Prime / Prime, confirm non-warrantable condo eligibility directly with the lender before structuring a buydown scenario
