Posted by Les on August 23, 2003 at 10:55:43:
Melie,
FNMA “Warrants” condo properties, based, as I understand it, largely on the ratio of rental to owner occupied units. There may be more to it than that, but that seems to be one of the main criteria. The idea being it affects the risk of the loan.
Many lenders will not lend if the properties not warranted, but there are a few that do.
Les
WARRANTABLE/ NON-WARRANTABLE CONDO - Posted by Melie
Posted by Melie on August 23, 2003 at 02:30:25:
Hello
What is the difference between a WARRRANTABLE Condo, and a NON-WARRANTABLE condo. Could someone please explain. I appreciate.
Melie
Re: WARRANTABLE/ NON-WARRANTABLE - Posted by Don Dion
Posted by Don Dion on August 23, 2003 at 14:33:05:
Both Fannie Mae and Freddie Mac have posted guide lines on condo’s for the example here I will use Freddie Mac.
There are three flavors Class 1, Class 2 & Class 3.
For the most part you will run into Class 3 : Marketability has been proven,not subject to additional phasing.
With this type of unit you have to look at the presales have 90% of the units sold? Are at least 60% of the total number of units in the phase/project owner occupied? Have the unit owners been in control for at least 1 year?
If your answers to these questions are yes then you have a warrantable condo.