FROM OUR BLOG
What makes a condo non-warrantable?
October 8, 2019
, home ownership
, home purchase
, investment property
, lending product
, loan process
, real estate
There’s a lot of misinformation about this topic, which makes it worth digging into! Below we’ve listed the characteristics which make a condo non-warrantable:
- Operates as a Timeshare or has fractional/segmented ownership
- Operates as a hotel/motel or includes rental desks.
- Split ownership that affects the borrower’s ability to use the property.
- Project has pending litigation (some exceptions apply)
- Total space used for non-residential or commercial purposes exceeds 35%.
- One single entity cannot own more than the following number of units: o 2-4 units – No more than 1 unit
- 5-20 units – No more than 2 units
- 21 or more units – Limited to 25%
- Investor/tenant occupancy of 50% or greater (If subject transaction is an investment property, doesn’t apply to primary or second home transactions)
Please contact us directly if you have any specific questions! 303-800-4595
-Michael Shotnik, Branch Manager