Back To Blog

Non Warrantable Condos in Greenwood

Non Warrantable Condos in Greenwood

 

If you’ve just heard the term "non-warrantable condo" and are curious about what it means, you’re not alone! Understanding these types of condos—and the financing challenges that come with them—is essential when purchasing a condominium.

A non-warrantable condo is one that doesn’t meet the criteria set by agencies like Fannie Mae, Freddie Mac, or FHA. Common reasons for this status include issues like incomplete construction projects, a high percentage of short-term rentals, or if the developer still controls much of the property. Additionally, for a condo to be warrantable, over 50% of the units typically need to be owner-occupied. Other factors include one individual or entity owning more than 10% of the units in the building.

While financing a non-warrantable condo can be tricky, it’s certainly not impossible. Specialized lenders often have programs designed for these situations, offering alternative financing solutions.

It can be a bit disappointing if you’ve already fallen in love with a specific unit only to find out it doesn’t qualify for conventional financing.  Always advise  clients to check on the condo’s status early on. A good listing agent will usually make this clear upfront, so be sure to ask.

When buying a condo, one of the first steps should be to look into the community’s financial health. Knowing where a property stands can save you time, money, and potential headaches. After all, purchasing a condo is a big decision, and you want to make sure you have all the facts before diving in.

    Add Comment

    Comments are moderated. Please be patient if your comment does not appear immediately. Thank you.

    This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

    Comments

    1. No comments. Be the first to comment.