My buyer asked about a specific condo complex, but the 2 listings in that complex say that they are "non-warrantable" in the listing agent remarks. Could someone please explain to me what this is?

THANKS!

Examples:

"Non-warrantable condo, but there are lots of lenders who can make it work & still get a great loan."

"We have a lender that can help with non-warrantable condo units AND DO 100% FINANCING!!! "

Google it.

They don't conform to certain guidelines (such as a low % of owner occupancy or a developer still being in control of the condo assn); your buyer will have to find a lender who will lend in that complex and can usually expect less favorable loan terms.

Call the listing agent and ask what it means specifically as it relates to this condo. Don't assume anything.

I agree. Find out what the phrase (really) means.
I haven't come across it in my eighteen years in this business (although I'm talking Canada and perhaps it's one of the "special differences" that exist in the US). However, all my instincts tell me to "make haste slowly." In general, the lack of a warranty suggests that something is likely to break down and you'll have no redress available.
Not quite the same as buying something "As Is," but it could be too close to this for comfort.

Duncan

That means it's hard to get a loan for it, even if it's going to be owner-occupied. The last time I purchased a rental condo like this, it took me 3 lenders and 6 mths to close.... it's just a little ity-bit-y thingy..... (price-wise)

It has been covered here well. I would emphasize getting all this disclosed to you in writing.

There could be a variety of reasons for this. Some that will just making getting a loan a problem and other reasons that could make the property unattractive for other reasons.

Did anyone else see the "Due Diligence" light come on?

R

In my area (CT) it means that you will not be able to get a loan for the condo b/c of the number of owner occupied units. However it you search you will find a lender that will do it.