What is a Warrantable Condo?
Fannie Mae has specific guidelines on what makes a condo warrantable.
The requirements of warrantability include these typical benefits:
- The condominium project (including common areas) is fully completed and the common areas are insured.
- The HOA Association is controlled by unit owners (as opposed to developer controlled).
- Most of the units are owner-occupied (non-rentals or investors), and no one person owns more than 10% of the units.
What is a Non Warrantable Condo?
- Developers are still in control of the homeowners association
- All common elements and amenities are not fully installed, completed and in operation
- More 30% of all units in the entire development have not been sold and or legally obligated to close
- More 30% of all units in the entire development have been sold to non owner occupants
- Recent or current condominium conversions (from apartments)
- Project is subject to phasing or add-ons which have not yet been completed
- More than 15% of the current unit owners are more than one month delinquent in payments of homeowners dues or assessments
- Condo’s that are classified as Condo Hotels
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Non Warrantable Condo’s require a Portfolio Lending Product
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I am a Licensed Mortgage Professional that has an established long term relationship with reputable Banks that lend money in Non Warrantable Condominium Projects.
NO CONDO QUESTIONAIRE REQUIRED
