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Physician loans · Condos in Seattle

Buying a Seattle Condo with a Physician Loan

With a condo, the lender approves two things: the doctor and the building. A unit can be perfect and still be hard to finance if the association's budget, insurance or lawsuits fall short of the lender's rules.

This page covers how buildings are reviewed, what "warrantable" means, how published physician programs treat condos, and the Washington documents that let a buyer check a building early. For physician loans in general, see the physician loan guide.

At a glance

  • The buildingLenders review the whole condo project: reserves, late dues, lawsuits, commercial space and ownership.
  • WarrantableIndustry shorthand for a building that meets Fannie Mae's project standards. Each physician program sets its own rules.
  • ProgramsSome published physician programs list condos as eligible; others don't mention them. Ask before writing an offer.
  • WashingtonA condo resale normally comes with a resale certificate, and the buyer may have five business days to cancel after first receiving it.
  • JumboA condo is a one-unit home, so the 2026 King County conforming limit of $1,063,750 applies.

By Brian Huie, Principal Broker and Realtor, Compass · Updated · Figures as of November 2026

Why condos are different

A condo owner owns the unit and a share of the roof, structure, elevators and garage. If the association is short on money, in a lawsuit or underinsured, every unit carries that risk.

So the lender reviews the project: the association's budget, insurance and records, often gathered on a condo questionnaire. Fannie Mae's version (Form 1076) is optional, though lenders are encouraged to use it.

Some condos need little or no project review. Under Fannie Mae's rules, a detached condo unit and a unit in a two- to four-unit condo project qualify for a waiver of project review.

Warrantable vs. non-warrantable, in plain words

"Warrantable" is not a legal term. Lenders use it for a building that meets Fannie Mae's project standards, so a loan in it could be sold to Fannie Mae. A "non-warrantable" building misses at least one standard. Fewer lenders finance it, often with more down or a higher rate.

A physician loan is a bank's own program, so its condo rules can be looser or stricter than Fannie Mae's. Fannie Mae's Selling Guide (B4-2.1 and B4-2.2, updated August 5, 2026) is still the common yardstick.

Common Fannie Mae condo project tests, Selling Guide as of November 2026
TestWhat the Selling Guide says
ReservesThe association's budget must put at least 10% toward replacement reserves, or the lender can rely on a qualifying reserve study.
Late duesNo more than 15% of units may be 60 or more days behind on dues or on any special assessment.
LawsuitsPending litigation against the association, or developer litigation over safety, structure or habitability, makes a building ineligible. Minor cases and dues collection are exceptions.
Critical repairsUnfunded repairs of more than $10,000 per unit due within 12 months, or unaddressed safety, mold or water problems, make a building ineligible.
One ownerIn a building of 21 or more units, no single person or company may own more than 20% of the units. In buildings of 11 to 20 units, the cap is two units.
Commercial spaceNo more than 35% of the building's square footage may be commercial or nonresidential.
Hotel-style useRental pools, hotel licensing or limits on owners living in their units make a building ineligible. Lenders look harder at 75% or more investor or second homes.
New buildingsAt least 50% of units must be sold or under contract to people living there or using them as second homes.
InsuranceThe master policy deductible can't exceed 5% of coverage, or $50,000 per unit for a per-unit deductible.

Summarized from the Fannie Mae Selling Guide; each test has exceptions, and the lender makes the call.

How physician programs treat condos

What each lender's page said when checked in November 2026:

  • BMO lists condominiums and townhomes among eligible primary residences, in all states except New York.
  • Truist and Huntington say primary residences only; their pages don't mention condos.
  • Bank of America says minimum down payment varies by property type and location.

Terms as published by each lender, November 2026; not an offer of credit. Confirm with the lender for the specific building.

Some programs exclude condos or add to the rate; see other terms to compare.

The jumbo line

A condo is a one-unit property, so FHFA's 2026 conforming limit in King County is $1,063,750; a larger loan is jumbo. Several published programs move from 0% to 5% or 10% down above about $1 million; see how the terms work.

For doctors who are also veterans, Brian's page on VA condo approval explains how a building gets approved for a VA loan.

Washington's resale certificate

In Washington, a condo seller must give the buyer a resale certificate from the association before the contract is signed or, failing that, before closing. Under RCW 64.90.640 it covers, among other items:

  • Current dues, any delinquent amounts and any special assessments already levied
  • Expected repairs or replacements over 5% of the annual budget
  • Whether there is a reserve study, and the most recent one
  • The budget, financial statements and most recent audit
  • Judgments and lawsuits involving the association
  • Insurance coverage and the association's insurance agent
  • Rental and other use restrictions
  • The declaration, rules, and 12 months of board and association minutes

The association has 10 days from the seller's request to deliver it.

The five-day window. A buyer may cancel within five business days after first receiving the certificate. If it arrives more than five business days before signing, that right does not apply.

Older buildings

Until January 1, 2028, RCW 64.90 applies to communities created on or after July 1, 2018, and to older ones that elect into it. Condos created from July 1, 1990 until then follow the Washington Condominium Act (RCW 64.34), and its resale section, RCW 64.34.425, also covers condos created before 1990. Under it, the contract is voidable until the certificate is provided and for five days after, or until closing. RCW 64.34 is repealed effective January 1, 2028.

Brian's Be Home post on condo resale certificates and reserve studies covers reading one.

What to check early

Ask for the resale certificate or recent association documents, and have the lender look at the building once there's a specific unit.

  1. Dues. They count with the mortgage, taxes and insurance in the payment the lender qualifies.
  2. Special assessments. Look for ones levied, proposed or discussed in the minutes.
  3. The reserve study. Compare planned repairs with money on hand. With no current study, the certificate must carry a required warning.
  4. The insurance deductible. A high master policy deductible can fall to owners after a loss and fail a lender's test.
  5. Rental rules. A rental cap or minimum lease term decides whether the unit can be rented after a move for fellowship or a new job.
  6. Lawsuits and repairs. Check for litigation, envelope or water work, and code violations.

How Brian times these checks inside a competitive offer is in the client section of Brian's buyer's guide.

Seattle skyline and the Space Needle at sunset with Mount Rainier behind

Condo questions doctors ask

Can a physician loan be used for a condo?

Often. Some published programs list condominiums as eligible, but the building usually has to meet the lender's condo rules, and some lenders exclude condos or price them higher. Ask about the specific building before offering.

What is a non-warrantable condo?

A building that misses at least one of Fannie Mae's condo project standards, such as reserves, delinquent dues, litigation, commercial space or single-owner limits. Fewer lenders finance it, often with more down or a higher rate.

Does a lender review a detached condo or a small condo project?

Less often. Under Fannie Mae's rules, project review is waived for detached condo units and for units in two- to four-unit condo projects. A physician program may set its own rules, so confirm with the lender.

How long does a Washington buyer have to cancel after getting the resale certificate?

Five business days after first receiving it under RCW 64.90.640, unless it arrived more than five business days before the contract was signed. Many older condos follow RCW 64.34.425, which allows five days.

Do HOA dues affect how much a doctor can borrow?

They do. Lenders count monthly dues in the housing payment when they measure debt to income, so higher dues mean a smaller loan at the same income.

Is a Seattle condo over $1,063,750 a jumbo loan?

A loan above $1,063,750 is, because that is the 2026 King County limit for one-unit homes, and a condo is a one-unit home.

More for doctors buying in Seattle

Keep reading

Next steps

The full picture lives in the main guide: who qualifies, how the terms work and how physician loans compare. When it is time to talk through a specific purchase, Brian is a quick call away.

Talk with Brian

This page is general information, not a loan offer or financial advice. Brian Huie is a real estate broker, not a lender, and Brian is not paid by any lender. Confirm loan terms with a licensed loan officer. Figures as of November 2026.

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