Yemeni Mason explains non-warrantable condos: properties Fannie Mae and Freddie Mac won't finance. Common reasons include investor concentration over 50% or reserves below 10% of the building's budget. Buyers can still get conventional financing with a limited condo review loan, but need 25% down.
So a non-mortgageable condo is basically a condo that Fannie Mae or Freddie Mac will not lend on. Now, the reason why they won't lend on could be for, you know, a plethora of different things, right? For instance, it could be because there's a high concentration of investors in that building, more than 50%. It could be because that building doesn't have, you know, a certain amount of reserves. Which is 10%, right? And those are just two examples out of the, you know, dozen or so that would, you know, qualify or disqualify a building from being what they consider warrantable. Now, if a building is non-warrantable, there are a couple different programs out there and ways of even being able to get around it while using a conventional loan. Now, in order to do a limited condo review with a conventional loan, you have to put down at least 25%.
How to Qualify for your First Time Home Purchase #mortgagerates #homeownership
