|Non Warrantable Condo Financing
Universal Capital Mortgage Corp. continues to be a leader in the funding of non warrantable condo loans in California. We offer a full line of fixed and adjustable mortgages, all with no prepayment penalties.
A condominium can be considered non warrantable when the project does not have Fannie Mae or FHA approval. This can be for a number of reasons, but the main ones are below:
-Project is new and does not have required percentage of units presold or closed
-A portion of the project is commercial (mixed use)
-There is a high concentration of renters in a project
-The HOA is involved in litigation
-The HOA budget reserves are not adequate
-One person owns more than 10% of the units in a project
-The developer never applied for project approval
There are only a handful of investors in the U.S. that will lend on non warrantable condos. These lenders are portfolio lenders, which means they fund loans and keep them in their portfolio of loans, and do not sell them off on the secondary market.
Whether you are a person interested in buying in a non warrantable project, or a management company/HOA, please contact me for a review of the condo project in question.