A non-warrantable condo» is a property that does not meet the typical loan criteria set by Fannie Mae or Freddie Mac. Lenders may consider these condos to be higher risk due to factors like low owner-occupancy rates, ongoing litigation, or a substantial amount of commercial space in the development. As a result, buyers may face limited financing options and could be required to provide bigger down payments with adjustable-rate mortgages. Even with these challenges, non-warrantable condos can still be excellent investment properties. It is advisable to work with a lender who focuses on non-warrantable condo loans to access competitive financing. Examine HOA documents and lender requirements before buying to prevent any complications.
Share