Loan Products

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 A warrantable condo meets the lending guidelines set by Fannie Mae, Freddie Mac, FHA, and VA, making it eligible for traditional mortgage financing.

Typical characteristics:

• No single entity owns more than 10% of the units  
• At least 50% of units are owner-occupied or second homes  
• Condo association has adequate reserves and no pending litigation 
• Insurance coverage meets lender requirements  

Appraisal Standards: Warrantable condos are subject to specific appraisal standards, which can provide buyers with added assurance regarding the property's condition and market value.

Non-Warrantable Condos are condominiums that don't meet the financing criteria set by Fannie Mae and Freddie Mac, making it challenging to secure conventional mortgages. Key points include:

• Financing Issues: NON-QM or private loans only.
• Reasons for Non-Warrantability: Factors may include high rental percentages, HOA financial problems, ongoing development, or litigation issues.
• Higher Costs: These condos often come with higher interest rates and stricter underwriting standards.
• Investment Potential: They may present opportunities for investors but carry additional risks and financing challenges.

 High Demand for Condos: Florida is known for its significant condo market, attracting both residents and investors. Understanding non-warrantable status is crucial for buyers and sellers in this competitive market.

Tourism and Rental Opportunities: Many condos in Florida are bought for investment purposes, particularly for short-term rentals. Those that are non-warrantable can face financing issues, impacting investment viability.

HOA Review: Buyers should examine the HOA's financial health and regulations carefully.

Financing Options: Familiarity with the non-warrantable status helps buyers explore alternative financing solutions, ensuring they are informed during the purchasing process.