Condo Conundrums: Scoring a Non-Warrantable Condo

If the condo you have your heart set on is non-warrantable, it might sound pretty hopeless. Even if you don’t know what non-warrantable means, you know that it’s a barrier to your homeownership dreams.

When you partner with MortgageDepot, you aren’t the first person we’ve helped to score a non-warrantable condo, and you won’t be the last! Here’s a quick rundown of how we help clients through this tough situation.

What Is a Non-Warrantable Condo?

A non-warrantable condo does not meet conventional loan guidelines, and lenders consider them to be risky propositions. Here are a few factors that put the dreaded “non-warrantable” label on some condos:

• The condo development is newly constructed or not completed.
• A high percentage of units are renter-occupied.
• One person owns 10% or more of the development’s units.
• The developer has legal red flags attached to their name.

MortgageDepot’s Solution

At MortgageDepot, we recognize that non-warrantable condos are not always a bad investment. Here’s how we help our clients conquer this mortgage mountain:

• We’ll consider a condo development with less than 75% of units sold or ready for occupancy.
• Our lenders consider condo developments as established and honor Property Inspection Waivers if:
  • More than 25% of units are retained for rental purposes and
  • The developer has owned these units for at least 10 years and
  • All other established condo requirements are met.

If you have questions about a condo purchase, MortgageDepot has answers. Contact us today for the best path to condo ownership!

Connect with one of our loan consultants to learn more.