Financing Non-Warrantable Colorado Condo Robinwood

[Diane Tycangco]

Hi!  I live in California but am thinking of buying a condo unit in Aurora, CO in the Robinwood complex which is non-warrantable.  Do any of you know why it is non-warrantable?  Delinquencies, low owner occupancy, etc...? 

Where can I get reasonable financing for this property?

Is it going to be harder for me to sell this in the future?  Is this going to hamper appreciation?

Thank you!

[James Carlson]

Hi @Diane Tycangco

Are you working with a Denver agent? If so, they should call the HOA and get the details. There are any number of reasons why a condo complex might be non-warrantable. More than 50% of the units are rentals. One person owns more than 10% of units. Terribly low reserve funds.

The reason why that's a big deal is that Fannie Mae and Freddie Mac won't buy a loan if it's on a non-warrantable condo. And because they buy almost all loans, if it's non-warrantable, it's hard to get conventional lending. In some instances, you can go FHA, but that requires the complex to be FHA-approved, and it looks from the FHA site that they are not.

That leaves two options: 1. Do as @Jerry Padilla said and shop for a portfolio loan or 2. alter your search for a different complex in Denver (or Aurora).

Good luck.