Condominiums are often viewed as the best of both worlds for residential home buyers. More spacious than an apartment, they provide a greater level of privacy without the hassle of property upkeep associated with owning a home. In addition to buyers who are looking for a new place to live, condos are also a coveted asset for investors who are looking for ways to generate passive income. Some traditional lenders are often hesitant to lend buyers money for a condo purchase based on a variety of factors. If you’re interested in purchasing a condo, even one that’s non warrantable, we may have the solution that you’re looking for.

What is a Non-Warrantable Condo?

A condo that is considered non warrantable doesn’t meet the conventional guidelines for federally funded loans such as Fannie Mae and Freddy Mac. Many traditional mortgage lenders refuse to offer loans for this type of property because they consider them too risky. In addition to the guidelines set forth by Freddy Mac and Fannie Mae, some mortgage institutions have their own criteria for what constitutes a non-warrantable condo. Some of these conditions include:

• The developer has yet to turn over control of the complex to an HOA
• The community permits short-term rentals
• A high percentage of the condos are occupied by people without ownership stakes
• The building owner or developer is involved in litigation
• A single entity owns more than 10% of the condos
• The complex isn’t yet complete

Simplified Mortgages for Real Estate Investors

While traditional lenders require to provide proof of income that goes back years with the same employer we understand that doing so isn’t always possible and take a non-traditional approach in making your dream come true.

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How Do I Know if a Condo is Non-Warrantable?

There are several ways to find out if a condo is non-warrantable. If you’re working with a real estate agent, you can ask him or her about the state of the condo that you’re interested in. Additionally, the condo’s management office should be able to provide you with that type of information. There is also an online database that was created by the Department of Housing and Urban Development that allows you to search the condo complex that you’re interested in investing in. 

What Can I Do if a Condo I Want is Non-Warrantable?

It can be incredibly disheartening to find out that a condo that you have your heart set on is non-warrantable. Especially if the traditional mortgage officer that you’re working with tells you that his or her company doesn’t provide mortgages on such properties. Are you supposed to just give up on a potentially great opportunity? Or do you look elsewhere?

Here at NonQMDirect.com, we don’t take a cookie cutter approach to mortgages. Instead, we view every loan application as a standalone proposition and consider all of the factors that make a loan acceptance. 

If you’re interested in purchasing a condo for your own habitation or as an investment but have been rejected based on its non-warrantable status, our team of lending professionals are here to help you. We understand that a condo’s non-warrantable status doesn’t diminish its value or your desire to own it.

Contact NonQMDirect.com today to find out how we can help you make your condo ownership dreams a reality.