A real estate investor looking for condo listings in Hartsdale received an unexpected message from a bank loan officer. The desired property was classified as a non-warrantable condo, meaning that conventional loans were not available at all. This may sound unfamiliar, but simply put, it means that the property does not meet the criteria set by Fannie Mae or Freddie Mac, making it ineligible for standard bank loan products.

There are several criteria that can lead to this classification. If the ratio of units with unpaid maintenance fees exceeds 15%, if the percentage of rental (investor-owned) units is excessively high, if the reserve fund is less than 10% of the budget, or if there is an ongoing lawsuit against the homeowners association, the property may be classified as non-warrantable. This information comes from the selling guidelines of Fannie Mae and Freddie Mac. In this case, obtaining a loan is not impossible, but it often requires turning to higher-interest portfolio loans or cash purchases.

Looking at the condo market in Westchester County, where Hartsdale is located, the median listing price for condos is around $279,000 as of July 2026 (Redfin). In contrast, the average home value across the county is $841,836, which has increased by 5.6% compared to the previous year (Zillow, as of June 30, 2026). In simpler terms, even within Westchester, there is a significant price gap between single-family homes and condos. This is one reason why condos may appear attractive to investors looking to lower their initial entry costs.

Maintenance fees must also be factored into the calculations. New York has some of the highest condo maintenance fees in the country, with an average monthly cost of $886 (HOA Costs data). This monthly expense can eat into rental income, so it is important not to make judgments based solely on the listing price.

After the Surfside condo collapse in Florida in 2021, the state enacted SB 4-D, which mandates structural inspections and full reserve fund contributions for buildings over three stories. New York does not yet have such statewide mandatory regulations. However, New York City requires buildings over six stories to undergo facade inspections every five years under Local Law 11, and repairs may be mandated based on inspection results. While Westchester County is not directly subject to this ordinance, it is advisable to check whether the homeowners association has conducted structural inspections for older buildings. Notably, a bill (A8945/S7600) is currently pending in the New York State Legislature that would require reserve studies and 30-year funding plans.

From a rental investment perspective, Hartsdale is in a decent location. Taking the Metro-North Harlem Line, it takes about 30 minutes to reach Grand Central, attracting a steady stream of tenants who prefer a quiet suburban environment while commuting to Manhattan. It is also worth noting that properties closer to train stations tend to have shorter vacancy periods.

Before signing a contract, here are some items to verify:

• Recent 2-3 years of financial statements and budgets from the homeowners association
• Results of the reserve study and reserve fund contribution rates
• Any pending or scheduled special assessments
• Records of lawsuits or disputes noted in homeowners association meeting minutes
• Rental restriction regulations and minimum rental periods
• Directly confirm with the bank whether the property is warrantable before applying for a loan

If you are moving from another state to New York, you should also consider property taxes and school districts. Westchester is often cited as a region with school districts preferred by Korean families, but school district boundaries frequently change, so it is advisable to check the assigned school for the property address using metrics like GreatSchools or Niche. Additionally, property tax rates and insurance systems may differ from those in your previous state, so it is wise to recalculate your expected monthly expenses.

These items are difficult to ascertain from just the property description and require direct requests to the homeowners association or documents obtained through an agent. This is especially true for those moving from out of state, as the maintenance fee structures may differ and can be easily overlooked. This article does not constitute investment or legal advice, and it is recommended to consult with real estate professionals, loan officers, and, if necessary, attorneys before proceeding with any actual contracts.