We Finance Non-Warrantable Condos
Our years of experience in condo financing have provided us with the best knowledge to help you buy your new condo. We are able to offer buyers the option to purchase their new condo using “Conventional Financing” which allows our clients take advantage of lower interest rates and costs even if they were told the condo was non-warrantable.
If your condo project is not eligible for conventional financing, we can still help you get the best possible rate with the lowest costs! Our expert condo investors allow us to finance truly non-warrantable condos in order to help you purchase your new condo.
What is the Difference Between Warrantable and Non-Warrantable Condos?
WARRANTABLE CONDOS
When a condo is identified as warrantable, that means it meets Fannie Mae’s and Freddie Mac’s conventional guidelines and Fannie Mae and Freddie Mac will buy the loan. Typically, a condo is considered warrantable if, for instance:
- No single entity owns more than 10% of the units in a project, including the developer
- Fewer than 15% of the units are in arrears with their association dues
- There is no litigation in which the homeowner’s association (HOA) is named
- Commercial space accounts for 25 percent or less of the total building square footage
NON-WARRANTABLE CONDOS
A non-warrantable condo is a condominium property in which the loan is not eligible to be sold to Freddie Mac or Fannie Mae, and as such, mortgage financing for this type of property is considered by most banks to be more “risky.” Freddie Mac and Fannie Mae would consider a condo to be “non-warrantable” if, for instance, the condo:
- Is in a development which has yet to be completed
- Is in a development which allows for short-term rentals
- Is in a development where one person or entity owns more than 10% of all units
- Is in a development involved in litigation of any kind regardless of whether the building is suing another party, or is the party being sued.
- Some of the common property types which fall into the non-warrantable category include condo-hotels, Timeshares, fractional ownership properties, and other projects which require owners to join an organization, such as a golf club.
Choose the Wiser Choice for Condo Loans
We are licensed in Texas and Florida and have helped many families and individuals realize their dream of home ownership. Since we are experts in all types of financing, we know how to get you qualified for the best loan for your situation. We understand that your new home is your most precious investment, so we ensure you understand the process fully and get the best rate with the lowest cost possible. Wiser Lending is the Wiser Choice for Home loans; Contact us today and you’ll be enjoying your new home in no time!