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.
Connect