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Financing For Non-Warrantable Coops

Purchasing a cooperative that does not meet Fannie Mae or Freddie Mac guidelines can be a challenge, but we have the solution at MortgageDepot. We have mortgage loan originators who are experts at helping borrowers obtain financing for nonwarrantable cooperatives.

Nonwarrantable cooperative financing

As a general rule, lenders do not hold the mortgage loans they originate. Once the closing takes place, lenders want to sell the loan on the secondary market and not assume the risks involved if the borrower defaults on the payments.

Financing properties that do not meet Fannie Mae or Freddie Mac guidelines makes it unlikely a lender can sell the loan. There are many reasons why a cooperative building might be nonwarrantable, including:

  • More than 50 percent of the apartments are rentals
  • Ownership of more than 10 percent of apartments by one person or entity
  • Building is subject of a lawsuit
  • More than 20 percent of building is occupied as commercial space

MortgageDepot has the solution for borrowers seeking to financing nonwarrantable co-ops.

Finding solutions to financing challenges

The fact a co-op is nonwarrantable does not stand in the way of our mortgage loan originators. A simple solution could be asking the lender to apply to Fannie Mae for a waiver. A waiver makes it possible for the lender to sell the loan on the secondary market.

We’re committed to finding solutions to the problems buyers face when purchasing a cooperative. When borrowers come to MortgageDepot for financing, we take the hassles out of the process by working with lenders on behalf of our borrowers.

Find out how MortgageDepot can help

MortgageDepot has the experience in cooperative financing to find solutions to challenges other lenders avoid. Call us today at (800) 535-0720 to learn more about how we can help you finance a nonwarrantable cooperative.

Contact us today for a FREE consultation or email us by clicking here.

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