CONDO FINANCING GONE WRONG

Updated: Sep 8

BUYER BEWARE!

What sounds too good to be true probably is!

CAN YOU SAY NON-WARRANTABLE?


Before you make an offer on a condo, check to see any of the following describe the condo you are interested in investing in:

  • Construction is not yet complete

  • Less than half of the units are owner-occupied

  • An individual or company owns more than 10% of the building units — including the developer

  • More than 25% of units are delinquent on HOA fees

  • The residents do not control the HOA

  • Commercial space makes up 35% (or more) of the building’s total square footage

  • There are pending lawsuits against the homeowner’s association

  • Condo-tels

  • Timeshares

  • Fractional ownership properties

  • Projects which require residents to join an organization, like a golf club

Often, lenders send out a questionnaire to the homeowners association only

after the appraisal.


WHAT A WASTE OF MONEY

and it creates a scenario where mere days before closing, your lender notifies you that they can't offer a conventional loan due to the condo being non-warrantable.


CONDO FINANCING GONE WRONG
CONDO FINANCING GONE WRONG

How do I find out if a condo is warrantable?

Go To:

https://lgy.va.gov or https://entp.hud.gov

If the condo building you’re looking at is on the list,

it should be fully warrantable.

IF NOT . . .

RUNNNNNN!

Unless You're Paying CA$H



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