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All About Non-Warrantable Condo Loans

All About Non-Warrantable Condo Loans

February 20, 2023 by X2 Mortgage

Are you looking to buy a non-warrantable condo? If so, there is a chance you have already been turned down by other lenders.

While many mortgage companies only finance warrantable condo purchases, X2 Mortgage can help you buy a warrantable or non-warrantable condo.

What is a Non-Warrantable Condo Loan?

A non-warrantable condo loan is a financing product designed specifically for the purchase of a non-warrantable condo.

What is a non-warrantable condo? This is a condo that does not meet the rules for Fannie Mae or Freddie Mac.

Non-warrantable condos are seen as riskier purchases, which is why not every lender is willing to work with buyers for these types of properties.

Who Needs a Non-Warrantable Condo Loan?

Anyone who is looking to purchase a non-warrantable condo needs a non-warrantable condo loan.

Fannie Mae and Freddie Mac have a variety of restrictions in their rules. Here are some examples of scenarios where a condo would be non-warrantable:

  • The condo is a condotel and/or allows short-term rentals.
  • The current owner is involved in a lawsuit.
  • The condo is still being developed.
  • A large percentage of the units are occupied by non-owners.
  • Manufactured homes are part of the property.
  • There is a membership fee to reside in the property.
  • A continuing care facility operates in the building.

Those are just some examples. Fannie Mae and Freddie Mac have other restrictions as well.

No matter why the condo you want to buy is considered to be non-warrantable, all that matters is the fact that it is. You cannot negotiate the status of the condo; you simply need to use a non-warrantable condo loan to purchase it.

Buy a Non-Warrantable Condo in Chandler or Beyond

X2 Mortgage has extensive experience connecting buyers with flexible financing for non-warrantable condos. To get started now, please call us today at (480) 992-4200 to schedule your consultation. Based in Chandler, Arizona we serve clients in numerous different states and markets.

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