Tailored financing solutions for Non-Warrantable properties

Knowing that it can be a labyrinth to deal with the South Florida property arena, especially concerning condominiums, Miami Lending Advisors takes this factor into account. We are here to offer support when you plan to buy a non-warrantable condo that does not comply with the usual specifications of conventional loans. With our rich experience in the real estate industry and a well-qualified team of mortgage experts, we know how to provide bespoke financing solutions for non-warrantable properties so that you can achieve your goal of owning a home.

What is a Non-Warrantable Condo?

Non-warrantable condos are units in condominiums that fail to comply with the rigid standards of government-sponsored organizations such as Fannie Mae and Freddie Mac. Non-warrantable condos provide a greater lender risk. We make conventional financing for non-warrantable condominiums possible despite the challenges.

Some reasons for a condo to be considered non-warrantable can include:

• Lack of owners control over the homeowners association
• High percentage of non-owner occupied units, allowance of short-term rentals, a single entity owning more than 10% of units
• Some types of ongoing litigations against the association
• Insufficient reserves in homeowners association budget

Financing Options for Non-Warrantable Condos

Miami Lending Advisors are experienced in financing non-warrantable condos and understand the challenges you may face. This is why we offer various lending alternatives and flexible terms to our customers. Our terms include:

• Available for domestic and international clients
• Loan amounts up to $10 Million.
• Purchase, Rate Term Refi, Cash-out Refi, and Debt Consolidation.
• Units must have a kitchenette/kitchen with a full stove.
• Available for non-warrantable condominiums, including condotel properties
• Closing as fast as 30 days

What is a Condo Questionnaire?

While trying to obtain financing for a non-warrantable condo, there is frequently an integral stage referred to as the condo questionnaire. One must be aware that this paperwork assumes great importance in the evaluation of whether or not the financial stability and sustainability of the condominium building contribute to influencing the lending decision.

A vital questionnaire referred to as the condo questionnaire is a substantive survey that helps lenders obtain crucial data about the condominium and its association. Ordinarily, the condo questionnaire is completed by the condominium association with helpful details about different parts of the property.

Key Components of the Condo Questionnaire

Financial Health:

One of the primary focuses of the condo questionnaire is the financial stability of the  association. Lenders  want to understand the association’s budget, reserves, and potential for special assessments. This information helps assess the association ability to cover maintenance, repairs, and unforeseen expenses.

Insurance Coverage:

The questionnaire often inquires about the condominium’s insurance coverage, including liability, property, and hazard insurance. Adequate insurance coverage is essential to safeguard both the association and its residents from unexpected events.

Governance and Management:

Lenders are interested in condominium association governance and administration. This covers the board, property management, and legal challenges.

Rental and Owner-Occupancy Ratios:

Renting and Owning Condo surveys ask regarding owner-occupied/rental unit ratios. This data helps lenders assess community stability, since more owner-occupied apartments suggest a more stable and attractive complex.

Pending Litigation

Disclosures regarding ongoing or potential litigation can significantly impact the lending decision. Lenders need to understand the legal environment surrounding the condominium complex to assess potential risks.

Amenities and Maintenance:

Details on shared facilities like swimming pools, gyms, and communal spaces are key. Furthermore, information on how often these areas are maintained and cared for can offer a glimpse into the living standards and community vibe of the complex.

At Miami Lending Advisors, we understand the significance of a successful condo financing approval and the pivotal role that the condo questionnaire plays in this process. Our approach involves fostering strong relationships with condominium associations to facilitate a seamless exchange of information. We collaborate diligently to ensure that every aspect of the condo questionnaire is thoroughly addressed, from financial stability and insurance coverage to governance and amenities.

Pros and Cons of Investing in Non-Warrantable Condos

Investing in non-warrantable condos involves a unique mix of challenges and rewards. While finding financing can be more difficult, buying such a condo could offer a significant investment potential.

Currently, there’s an upward trend in the South Florida market for purchasing non-warrantable condos. This prime season for buying offers you an excellent opportunity to invest in your dream Florida non-warrantable condo.