Buying a Non-Warrantable Condo in Florida
Published 6 months ago
And then you hear those magic words for the first time: Non-Warrantable Condo. What does that even mean? Short answer is “it does not meet conventional guidelines and will not be bought by government-backed entities like Fannie Mae and Freddie Mac”. Basically, most vacation home/rental type condos are considered non-warrantable. This is as opposed to regular residential condos that you live in which are typically considered warrantable and can be bought and sold much like a typical single-family residence.
Here are some of the factors that that generally make a condo non-warrantable:
- Over 50% of the units are not owner-occupied.
- The complex allows short-term rentals.
- The project is not yet completed.
- A single person owns more than 10% of the total units.
- The complex / HOA is under current litigation.