CONDO FINANCING GONE WRONG?!

BUYER BEWARE!

What sounds too good to be true probably is!

CAN YOU SAY 'NON-WARRANTABLE'?

Before you make an offer, check to see any of the following describe the condo you're interested in investing in.

  • The condo development hasn’t been completed

  • Less than half of the units are owner-occupied

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

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

  • If the homeowner’s association isn’t controlled by the building’s residents

  • Commercial space is 35% or more of the building’s total square footage

  • There are pending lawsuits against the homeowner’s association

  • Condotels

  • Timeshares

  • Fractional ownership properties

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

Lenders often only send out a questionnaire to the homeowners association after the appraisal. WASTE OF MONEY This creates a scenario where mere days before closing your lender notifies you that they are unable to make a conventional loan due to the condo being non-warrantable.



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