Can I get a loan on my condo?
Today my appraisal report revealed information that the lender should have known before they ever hired me to perform an appraisal - the condo I was performing the appraisal for was "Non-Warrantable." Weeks of work, hundreds of dollars, and the potential for the lender to be on the hook for a half a million dollars in debt because someone didn't read.
A condo project is not warrantable if it features one of the following restrictions:
Include manufactured homes.
Require membership, such as a golf club or country club.
Operate as a hotel or motel, also known as a condotel.
Be part of a continuing care facility.
Be party to a lawsuit.
Allow single person or business to own more than two units in a development (for developments with 20 units or less) or 20% of all the units in a project (for developments with 21 units or more).
Feature non-residential or commercial space exceeding 35% of the total space in the project.
Have more than 15% of the units in the project 60 days (or more) delinquent on their HOA dues.