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Teri SmithCONDO 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?
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