Home Buying in Denver>Question Details

Nflynn.silva…, Home Buyer in Denver, CO

Does anyone know about non-warrantable condo projects in Denver?

Asked by Nflynn.silva10, Denver, CO Tue Nov 26, 2013

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They cannot be financed by FHA or VA. Some of them can be financed by conventional loans by specific lenders. You need to have a good lending broker to work this through. Each development is a little different and you need to have an experienced lender to walk you through the process. Let me know if you would like the info of some of my best lenders.

Robert McGuire ASR
Your Castle Real Estate
Direct - 303-669-1246
1 vote Thank Flag Link Sat Nov 30, 2013
There are many reasons a project becomes "unwarrantable", such as too low owner occupancy ratio, not enough insurance, too many units owned by one owner/entity and more. If the property you found is in a non-warrantable project, I suggest looking into a "portfolio" lender who does not plan to have the loan insured with FHA, VA, or funded by FNMA or FHLMC. I have had success with Key Bank, Vectra Bank, and others. The loan is available if you can qualify. Best of luck to you!
1 vote Thank Flag Link Tue Nov 26, 2013
Thank you.
Flag Tue Nov 26, 2013
My experience with non-warrantable condominium projects is that there is no formal approval for FHA, VA, or FNMA/Freddie Mac. This reduces the number of lenders willing to originate loans in the project. There are a handful of lenders in the Denver Metro area willing to originate loans without this approval. Rates may be a tad higher, but normally this includes self insuring Private Mortgage Insurance...... Mark Nelson Distinctive Properties mnelson@distinctivedenver.com
1 vote Thank Flag Link Tue Nov 26, 2013
Yes I know about non-warrantable condo projects in Denver. Aside from the earlier responses here from my colleagues, is there anything else that you would specifically like to know?

Michael Turner
720 300 0889
1 vote Thank Flag Link Tue Nov 26, 2013
I have successfully worked with buyers and sellers on condos that are not warrantable. How can I help?
1 vote Thank Flag Link Tue Nov 26, 2013
I'd be happy to explain more, but this a very broad subject. Give me a call at 303-242-5222.

Kimberly Kasubke
Loan Officer at Supreme Lending
1 vote Thank Flag Link Tue Nov 26, 2013
I know it has been becoming more of a problem recently at our firm. There are a number of reasons why a condo is non-warrantable, feel free to give me a call or email and we can chat more details.

Greg Charlton
Wisdom Real Estate
Buyers Specialist
1 vote Thank Flag Link Tue Nov 26, 2013
If you are trying to purchase a Condo that has been classified as non warrantable it means a few different things in regards to how many investors own properties in the building. It could also be becasue of delinquent HOA's or a few other reasons. However it is still possible to get a loan on a property like this. If you would like more guidance please reach out to me. Thank you Steve 303-507-5523
1 vote Thank Flag Link Tue Nov 26, 2013
Sorry, that is a pretty vague/loaded question, just my 2c coming from a lender's perspective.
1 vote Thank Flag Link Tue Nov 26, 2013
If you are looking for a mortgage on a non warrantable condo, we offer non warrantable condo loans nationwide.

Let's discuss your loan scenario in more detail.Contact me at 800 315 8803. My name is Bart and I have been in the mortgage business since 1987. I am happy to answer your mortgage questions, 7 days a week and review your loan scenario.

Until then, I look forward to hearing from you.

Bart Gabe - 800 315 8803

NMLS# 20743 - my licensing information
http://www.nmlsconsumeraccess.org/ - link to look up my license number
1 vote Thank Flag Link Tue Nov 26, 2013
Flag Sun Dec 1, 2013
Thank you! I'm working with Vectra Bank now.
Flag Sun Dec 1, 2013
For an updated list of FHA approved condos in Denver checkout http://www.homebuyerwise.com/FHA-Approved-Condos/city/Denver… for 24/7 access. Unfortunately the HUD site is down in evenings and on weekends when people need it most. Most other sites have data that is out of date.
0 votes Thank Flag Link Fri Feb 13, 2015
I have become so good at warrantable/non warrantable condos - that these are the properties I really enjoy to buy & sell. I help many investors purchase condos so that they have a profitable investment with good returns. All properties can be financed, just how you do it if it is a non-warrantable condo is slightly different than if it was warrantable. My opinion only - is about 80% (or more) in the Denver area are non-warrantable. Here is a little info I compiled to help my clients:

Warrantable Property Characteristics: (these are just a few characteristics and the list is not all inclusive)
60% of the units are owner occupied (not renter or investment properties)
On established and existing projects, at least 90% of the units must be sold
For new and currently converted construction, 70% of the units must be pre-sold (closed or under contract)
15% or less of the units can be 30 days delinquent on HOA dues
No more than 10% of a project can be owned by a single entity
No more than 20% of the project can consist of non-residential space
The Homeowners Association must have at least 10% of its budgeted income designated for replacement reserves

Julie Bloch Burton - Broker Associate, Realtor®
Brixton Real Estate - http://brixtonassociates.com/
Cell Phone: 970.396.7435 | Fax: 720-306-2397
email: julieb@Brixtonmail.com
0 votes Thank Flag Link Tue Dec 10, 2013
I have helped many buyers and sellers with this type of property. Please contact me and I will be happy to help with your questions.
0 votes Thank Flag Link Mon Dec 2, 2013
Go over this with your Realtor.
0 votes Thank Flag Link Tue Nov 26, 2013
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