The Good News with Manny

LET’S LEARN MORE ABOUT
NON-WARRANTABLE CONDOS
AND NON-QM MORTGAGES


Dear Real Estate Professionals, Future and Current Homeowners,

Today, I continue taking you through my course, “Condos with Manny Kagan: Classes by a Mortgage Broker”.

Class III video is available at this link.

Also, be sure to read the notes below and save them for future reference.

Class III, Week 3:

NON-WARRANTABLE CONDOS AND NON-QM MORTGAGES

A condominium is considered non-warrantable if it meets any of the following criteria:

  • The project is new construction or incomplete.
  • The developer has not transferred control of the Homeowners Association (HOA) to the owners.
  • A high percentage of units are occupied by non-owners.
  • The community allows short-term rentals.
  • A single entity or individual owns more than 10% of the total units.
  • The building owner or developer is involved in ongoing litigation.

Non-Qualified Mortgage (Non-QM) programs offer alternative income calculations, often with higher interest rates. These programs can help borrowers overcome issues related to non-warrantable condos and income qualification.

In many cases, mortgage brokers play a crucial role in finding solutions for borrowers. They work with various mortgage banks specializing in Non-QM mortgages. These lenders source funds from financial institutions, insurance companies, hedge funds, or specialty investors.

Becoming a skilled mortgage broker requires years of experience and knowledge. It involves connecting the dots and finding the right lender to close the loan.

With nearly 40 years of experience as a mortgage brokerage company, Pacific Bay Financial Corporation has established strong relationships with multiple mortgage banks. Our dedicated team continuously nurtures these relationships to provide our clients with the best possible solutions.

To be continued next Wednesday, January 29, 2025

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Need help? Call me: (415) 225-7920

Best wishes,

Manny Kagan,
President,
Pacific Bay Financial Corporation
Your professional mortgage broker since 1983

NMLS #205637
DRE #00874630