Condo I want to purchase is "non warrantable"

There are programs that would work for this. I have helped finance a few non warrantable condo's for clients. You need to contact a lender that works with what we call Non-QM programs. I would be more than happy to answer any questions. 719-985-5626

There are lenders out there that lend on "Non-Warrantable" condos..(including myself) but understand because their non warrantable designation, they become more risky for investors.. for this reason, expect to pay a much higher down payment, typically 20% to 30% or more, and much higher interest rates. Also understand that just because a lender advertises they do non warrantable condo's, doesn't mean they will do your project.. all of your conforming loan guidelines have minimum property characteristics that your property must adhere to.. the biggest one is owner occupancy.. (guidelines require a minimum of 50% owner/occupants).. so Conforming loans will require a 50% or higher owner occupant.. whereas a non warrantable lender might only require 30% owner penetration. So non warrantable lenders don't ignore all the conforming guidelines, they have "Relaxed" guidelines.. Understand that because of the mortgage meltdown, condo's became real cheap.. cheap enough for investors to pay cash.. as a result, most condo projects have high investor ownership.. This is problematic because renters do not take care of the property as an owner occupant would.. so as a result, the more rentals in the project, the less desirable the project becomes to those who want to buy, which in turn, drives down the property value. As a real estate investor for over 30 years, I would ask you this question.. Why would you want to buy a property that a lender wont lend on? You might buy 5 to 10 homes in your lifetime.. big lenders offer financing to 100's of people a day.. they are much more in tune with the market and which type of loans are more risky then others.. For the same reason a lender wont lend on this project should be the same reason you shouldn't buy it.. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / LendUS, NMLS 1938/ AZMB0121893