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

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

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14
Robert McGui…, Agent, Denver, CO
Sat Nov 30, 2013
NFlynn,

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
Broker/Consultant
Your Castle Real Estate
Direct - 303-669-1246
http://about.me/robertmcguire33
1 vote
James Ponzi, Agent, Denver, CO
Tue Nov 26, 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 you.
Flag Tue Nov 26, 2013
Mark Nelson, Agent, Denver, CO
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
Michael Turn…, , Denver, CO
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
Relogic
720 300 0889
mturner@relogic.com
1 vote
Christine Ni…, Agent, Denver, CO
Tue Nov 26, 2013
I have successfully worked with buyers and sellers on condos that are not warrantable. How can I help?
1 vote
, ,
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
Wisdom Real…, Agent, Denver, CO
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
gcharlton@wisdomrealestate.net
303-349-0249
1 vote
Steve Badovi…, , Denver, CO
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
Ray, , Denver, CO
Tue Nov 26, 2013
Sorry, that is a pretty vague/loaded question, just my 2c coming from a lender's perspective.
1 vote
, ,
Wed May 18, 2016
Someone else mentioned this but there are many reasons a condo can be considered non-warrantable and not all of them mean they can not be financed through traditional financing methods. I created a guide a while back that explains non-warrantable condos that you might find helpful:

http://www.lendingahand.com/wynning-sheets/
0 votes
Fri Feb 13, 2015
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
Julie Bloch…, Agent, Westminster, CO
Tue Dec 10, 2013
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
Mike Desmara…, Agent, Denver, CO
Mon Dec 2, 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
Josh Barnett, Agent, Chandler, OK
Tue Nov 26, 2013
Go over this with your Realtor.
0 votes
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