October 8, 2019

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



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Sierra Pacific Mortgage Company, Inc.

Sierra Pacific Mortgage NMLS# 1788. Michael Shotnik NMLS: 218281, CO License: 100017466. Regulated in Colorado by the Division of Real Estate #988320. To check license status of mortgage loan originator, visit D.O.R.A. and NMLS consumer access.