Coming back to you with some more information on condominium financing.
Let’s talk about condominiums and conventional loans. Look, this is how most of them are financed to be frank with you. I did a separate video on condos being warrantable and non-warrantable. Just to recap real quickly, a warrantable condo means that it meets Fannie Mae and Freddie Mac’s guidelines. In order to determine that there is a questionnaire that has to be filled up by the condominium association.
By the way, there are charges for those. Those charges started happening during the crash, it has continued on kind of like those baggage fees to offset those high gas prices. I’ve seen $50, I’ve seen $300but just know there is most likely a charge. So they have to fill up this questionnaire and send it along with their financials. The questionnaire is around 27 questions and every question has to meet Fannie and Freddie’s guidelines. If one of them doesn’t, then it is not a warrantable condo and you can’t get a conventional loan on it.
Everything has to meet, their insurance has to be in order, their budget has to be in order, their reserves have to be in order, there’s a lot of it. Look, buying a condo in a financially stable condo association is what you want, it protects you, and it protects us. That’s the deal with conventional financing on condominiums. It has to meet those guidelines & if it doesn’t meet those guidelines
that is considered non-warrantable. There is financing for that, it’s just not conventional financing.
Being this as a deal killer, it’s one of the first things I do, I get that condo questionnaire filled out so we know what is going on. If there is going to be a problem, let’s find out as soon as we can. Every once in a blue moon I’ve actually went to condo associations who refuse to fill out the questionnaire, in which case that’s definitely non warrantable. That’s what I got for you, any other questions reach out to me, my name is Scott DiGregorio, I’m Your Mortgage Guy, I’ll see you on the next one, take care.