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