What Does Non Warrantable Condo Mean

Since non-warrantable condos are riskier than regular units, mortgage rates are higher. In many instances, the overall cost of the condo may be lower, but more money goes toward the interest. Lenders do this to mitigate their risks since you are paying them more money over time.

Is it bad to buy a non-warrantable condo?

Since non-warrantable condos are riskier than regular units, mortgage rates are higher. In many instances, the overall cost of the condo may be lower, but more money goes toward the interest. Lenders do this to mitigate their risks since you are paying them more money over time.

What makes a property Non-Warrantable?

A non-warrantable is any condo that doesn’t meet all of Fannie Mae or Freddie Mac’s qualified lending requirements. Whether it’s a houseboat or 16% of unit owners are delinquent on their association dues — the specific requirement that’s missing doesn’t matter.