Philadelphia Condos: Non Warrantable Condominiums
Philadelphia Condos: Non Warrantable Condominiums
The question of warratability came up twice last week and I’m guessing that most of the real estate buying public doesn’t know what an unwarrantable condo is. Here’s a post from Jason Griesser’s blog that answers that very question. If you have a question about financing a particular PPhiladelphia condo feel free to give me a call.
What does it mean when a Building is Non-Fannie Mae Warrant-able?
Fannie Mae has issued guideline on which buildings they will and will not finance. Some of the criteria, which came about in the past few years can really hamper a buyers ability to finance certain condominiums. Here are some of the Guidelines:
1) Owner Occupany Ratios – no more than 30% of the building units can be “rental properties” where the owners are not occupying the property
2) Percentage of Building that is Commercial Space – No more than 20% of the total square footage can be commercial space
3) Percentage of units owned by one entity – No more than 10% of the building units can be owned by one entity
4) The condo’s budget! – The condo association’s budget must reflect 10% of the buildings operational costs must be budgeted into a reserve account
Generally speaking, a non-fanne mae warrant-able building means that traditional channels of financing are not available for that building. Which can be a real problem for resales. So in a non-warrant-able condo the terms of the loan will be worse due to the perceived higher risk the lender sees in the condo association.
Jason F. Griesser, CMB
Trident Mortgage Company
Ph: 215-440-2073
[email protected]
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Blog post compliments of CenterCityTeam’s Philadelphia Real Estate Blog
Frank L. DeFazio, Esquire
Prudential Fox & Roach Realtors – Society Hill
530 Walnut Street, Suite 260
Philadelphia, PA 19106
215.521.1623 Direct
610.636.4364 Cellular
888.308.1148 Fax
[email protected]
CenterCityTeam.com: Philadelphia Real Estate
