Stewart Brown Jr – Mortgage Loan Originator – Purchase or Refinance
| Condos are the perfect homes for many reasons – they can open homeownership to different groups of people and can be an affordable way to live in an urban setting or vacation hot spot without buying an entire house. They are also a great way to own a home without worrying about maintaining and up-keeping the exterior of your home.
One of the issues a potential homebuyer may run into when searching for their dream condo is that it could be flagged as non-warrantable. When a condo is labeled as non-warrantable, it means that it does not meet conventional guidelines and will not be bought by government-backed entities like Fannie Mae and Freddie Mac. Many lenders consider financing a mortgage for this type of property to be too risky which can make it harder to finance. Some companies may have their own guidelines as to what is considered warrantable or not, but the most common reasons for a condo to get flagged include:
Your realtor, lender, and condo’s management office should be able to have the resources available to help you determine if a condo you are interested in buying is non-warrantable. You can also try checking out on your own through a database run by the Department of Housing and Urban Development for either FHA or VA approved condos. All you have to do is enter the condo by its name, location, or status. If you run into this issue and had your heart set on a specific condo, hearing that it’s been flagged as non-warrantable can be pretty upsetting. The good news is that you can still finance a non-warrantable condo. |
| Condos are the perfect homes for many reasons – they can open homeownership to different groups of people and can be an affordable way to live in an urban setting or vacation hot spot without buying an entire house. They are also a great way to own a home without worrying about maintaining and up-keeping the exterior of your home.
One of the issues a potential homebuyer may run into when searching for their dream condo is that it could be flagged as non-warrantable. When a condo is labeled as non-warrantable, it means that it does not meet conventional guidelines and will not be bought by government-backed entities like Fannie Mae and Freddie Mac. Many lenders consider financing a mortgage for this type of property to be too risky which can make it harder to finance. Some companies may have their own guidelines as to what is considered warrantable or not, but the most common reasons for a condo to get flagged include:
Your realtor, lender, and condo’s management office should be able to have the resources available to help you determine if a condo you are interested in buying is non-warrantable. You can also try checking out on your own through a database run by the Department of Housing and Urban Development for either FHA or VA approved condos. All you have to do is enter the condo by its name, location, or status. If you run into this issue and had your heart set on a specific condo, hearing that it’s been flagged as non-warrantable can be pretty upsetting. The good news is that you can still finance a non-warrantable condo. |
Reach out to me for further detailed information on Non-Warrantable Condo loan programs.