What Is a Non Conforming Condo

When a condo is labeled as non-warrantable, it means that it does not meet conventional guidelines and will not be bought by government-backed entities like Fannie Mae and Freddie Mac. Many lenders consider financing a mortgage for this type of property to be too risky which can make it harder to finance.

Is it a bad idea to buy a non-warrantable condo?

If you are looking for a home, a place to live, non-warrantable condos are risky. However, if you are looking for a real estate investment, these condos might be worth it. … As a condo owner, you do not have total control over the building. So, you might get stuck with a bad investment no matter what.

How do you know if a condo is warrantable?

How do I find out if a condo is warrantable? An easy way for anyone to determine if a condo is warrantable is to check both the VA and FHA approved condos lists. If the condo building you’re looking at is on the list, it should be fully warrantable. Don’t panic if your building is not on the list.