HOW TO DEAL WITH
NON-WARRANTABLE CONDOMINIUMS?
Dear Real Estate Professionals, Future and Current Homeowners,
I am glad to present to you Class IV of my new educational program, “Condos with Manny Kagan: Classes by a Mortgage Broker”.
My presentation on Non-Warrantable Condominiums is available on YouTube at this link.
Also, make sure you read the notes below and save them for your future reference!
CLASS IV TAKEAWAYS
A condo is considered non-warrantable when:
- The project is new construction and/or has yet to be completed.
- The developer has not turned over control of the HOA to the owners.
- A high percentage of units are occupied by non-owners.
- The community allows short-term rentals.
- A single person or entity owns more than 10% of the total number of units.
- The building owner or developer is involved in litigation.
- There are problems with HOA (lack of insurance) and maintenance
NON-QM programs offer alternative income calculations, often with higher interest rates. These programs address issues with condominiums and borrower qualifications.
In many cases, mortgage brokers who work with various mortgage banks can provide their solutions. These banks specialize in non-QM mortgages, sourcing funds from financial institutions, insurance companies, hedge funds, or specialty investors.
Becoming a professional mortgage broker requires years of experience, as it involves connecting complex details and finding suitable lenders.
With nearly 40 years of experience as a mortgage brokerage company, Pacific Bay Financial Corporation has established relationships with numerous mortgage banks. Our dedicated team maintains these relationships, ensuring access to a range of lending options.
To be continued next Wednesday, February 12, 2025
***
Need assistance? Call me: (415) 225-7920
Best wishes,
Manny Kagan,
President,
Pacific Bay Financial Corporation
Your professional mortgage broker since 1983
NMLS #205637
DRE #00874630