Townhome mortgage warrantability...
Hi, I was wondering if anyone could explain how to determine whether a new construction townhome/rowhome development in Chicago would meet mortgage warrantability guidelines to facilitate sale of the mortgage to Fannie Mae/Freddie Mac.
I'm interested in a fee-simple titled townhome project that is less than 50% sold, and most of the lenders I've talked to don't believe they could do a loan because they're lumping the townhome in with non-warrantable condos (and the restrictions that are imposed thereon). However, one lender does believe the property is warrantable...any idea who's right, and what criteria in specific determines warrantability for a townhome? I don't want to get through the process and be stuck a week from closing without a loan.
Terry, some questions I recommend you consider getting answers for are as follows: (1) are the common areas completed, (2) is the homeowner association currently led by the Developer, (3) have other, previous units closed with conventional financing delivered and serviced by lenders such as BofA, Citi and Wells Fargo.
I think getting more details from #3 should help confirm whether previous closed transactions were with mortgages that perhaps meet Fannie Mae or Freddie Mac guidelines.
You may want to consider a lender who can portfolio the mortgage (aka, mortgage may not have to meet Fannie or Freddie guidelines) and willing to close and fund your purchase transaction.
If you want to discuss this further, you are welcome to contact me.
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