Warrantability Of Condo Purchase
I am looking at purchasing a condo through my LLC. I had all the info and it looks like a good deal but then I came across questions about warrantability. I have bought townhomes and duplexes before (where one also owns the land) but this is my 1st stab at a condo purchase.
My plans for this unit are as a long term rental. Can anyone point me in the right direction as to what warrantability means? Also, are there other thing I need to consider with this potential purchase?
Thanks in advance for your help and insight.
JS.
Anyone?
My question is: With respect to Condos, what does warrantability mean? And where can I read up on how to determine the warrantability for an individual condo?
Thanks,
JS.
Help?
smithj2,
Different things can make a condo non-warrantable.
It can have to do with whether or not a project is complete, who is controlling the HOA, etc., etc. But most often it has to do with the number of units that are investor owned, rather than owner-occupied.
Some lender will loan on non-warrantable condos, while others won’t. They view it as higher risk.
You should probably first check with your current lender and see if they’ll do them. If not, you may need to find a different lender.