Non Warrantable Condos

Do you know what a non-warrantable condo is? If you have interest in buying a non-warrantable condo and need a loan, what happens next? For these questions, you can seek the help of your Realtor and an excellent experienced Lender. 

For background on this issue, Fannie Mae, the Federal National Mortgage Association, was created to stabilize the housing market by buying existing mortgages from lenders, bundling them and selling to investors. Lenders are then replenished and have cash to offer for new mortgages. Fannie Mae will not purchase loans that are secured by units in condo (or co-op) projects if there are characteristics that make the condo (or co-op) project ineligible, or non-warrantable. For details of these characteristics see Fannie Mae web site .

What this means to you - the condo home buyer - is that not every Lender will offer a mortgage if the condo you want is non-warrantable. Rely on your Realtor to assist with referrals to local Lenders, and to also assist in forging through the HOA documentation required in this type of transaction:

Important Documents:

Balcony/Deck Inspection Reports
Current HOA Budget
Master Insurance Policy
Rental Rules
Reserve Fund or Reserve Study
Delinquency Report
Litigation Letter
Recent Board Meetings

I have assisted buyers and sellers navigate this type of situation and I am ready to assist you!