Forgotten Your Password?

Need to Register?

Don Maher

Urgent Update To Non Warrantable Condo Financing

Monday, March 14, 2011 - Article by: Don Maher - Universal Capital Mortgage Corp - Message

As of today, there are now loan programs for non warrantable condo coplexes with the following issues:

1. HOA Litigation - Any Type
2. High HOA Default Ratio ( in excess of 15%)

Many condo complexes are in good financial shape, but due to the number of units, or HOA litigation, may be non warratnable.

For Example:

1. An HOA may be suing a painting contractor for unfinished work. Even though that has no effect on the financial strength of the HOA, it still makes the building non warrantable.

2. A 6 unit building has 1 unit behind on the HOA dues. Even though it does not present a major problem to the HOA financial stability, it is still more than 15% of the total unit count, so it is technically non warrantable.

Adding to the above, the following are also acceptable issues for financing:

1. Mixed use complexes
2. Complexes where one entity owns more than 10% of entire project
3. New developments
4. High rise developments
5. Non Owner Occupied Cash Out

Log on to for more information.

Didn't find the answer you wanted? Ask one of your own.

Get an answer
Subscribe to our news feed.