Non-Warrantable Condo Loan
Even though they’re generally less expensive, securing a condo loan can sometimes be more difficult than a mortgage for a home. This is because the value of a condo is dependent on a number of other factors, like the financial stability of the development. If a bank determines that the development is at risk in any way, they deem it non-warrantable and try to stay away from providing any loans for prospective buyers. A bank could decide this for several reasons:
- The development is stuff under construction
- The developers have not yet turned over control to the Home Owners Association
- The development allows short term rentals
- Someone owns more than 10% of the units in the development
- The development contains more than 50% rental units
Plus, if the development is in the middle of any kind of legal action, even if the development is the one suing someone else, like a contractor, the bank might decide to call the whole thing non-warrantable and refuse to provide any condo loans to anyone.
How We Can Help
At McLellan Financial Mortgage, we have access to lenders more flexible than most banks. Many of them offer great rates on non-warrantable condos, we can also help you finance a construction, we work with the best contractors, here you can find more info about them. If you’ve got your heart set on a condo, but something is keeping the bank from approving your loan, give us a call. We can get it done for you. Because at McLellan Financial Mortgage, we do more than close loans. We open doors.
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Call us at (248) 619-7067