A non-warrantable condo refers to a condo project that is not eligible to be used as collateral for loans sold to Fannie Mae (FNMA). In other words, Fannie Mae has specific requirements for condo projects to be eligible for lending and condos that do not meet their criteria are referred to as "non-warrantable".
Warrantable definition is – capable of being warranted : justifiable. How to use warrantable in a sentence.
A non-warrantable condo is a condominium property in which the loan is not eligible to be sold to Freddie Mac or Fannie Mae, and as such, they are considered by most banks to be more "risky." Freddie Mac and Fannie Mae have established criteria when it comes to evaluating condominium developments.
By definition, said Evans. To help meet member demand for affordable housing, DSFCU offers financing for non-warrantable condominiums and investor loans, but it follows strict due diligence and.
Non-Warrantable Condominium Mortgages are 30 year portfolio adjustable rate mortgages that are not sold on the secondary market and kept in house. Any condo complex with 51% or more investor owned are considered non-warrantable condos. Fannie Mae and Freddie Mac does not purchase non-warrantable condo mortgages
A non-warrantable condo with Fannie Mae, the government entity that securitizes mortgages, is one that does not meet the guidelines for financing eligibility. The condominium complex as a whole is not warrantable, meaning that lenders see it as a high-risk property and one less likely to maintain future value.
Should I be buying a non warrantable condo in the city? I like the condo and the area but afraid I will not be able to sell it later due to mortgage Find answers to this and many other questions on Trulia Voices, a community for you to find and share local information. Get answers, and share your insights and experience.
The project eligibility review service (PERS) is a review method available to lenders to submit project information to Fannie Mae for eligibility review. The use of PERS is required for the review of certain projects.. The GSEs have developed standardized condo project Questionnaire forms.