Warrantable Condo

Warrantable Condo

A condominium project with features that lenders view as favorable in terms of their risk exposure on loans secured by individual condo units.

The requirements of warrantability include such features as the following: the project (including all common areas) is fully completed and the common areas are insured, the Homeowners Association has been controlled by unit owners (as opposed to the developer) for some period, most units are owner-occupied, and no one person owns more than 10% of the units. Loans on units in warrantable condos receive better terms than loans on units in non-warrantable condos.

References in periodicals archive ?
Now Fannie and Freddie are saying, 'If we find out that it does not conform, as far as being a warrantable condo, you now have to buy back the loan; we will not provide the funding for it.