Seeking Non-Warrantable Condo Lenders

[Carolyn F.]

Searching for lenders who can do financing for non warrantable condos in Marlyand with 50 units or more. 

Note: Buyer was already approved but current lender can not do a non-warratble condo.

The purchase price is 260k For property in Severn, Md (Anne Arundel county) 

Thanks!

[Chris Mason]

Originally posted by @Russell Brazil:

Nonwarrantable condo lender = Unicorn.

Also, you should not pay anywhere close to $260k for a nonwarrantable condo in Maryland. When a condo becomes nonwarrantable, prices plummit.  Most of them are sub $100k.

 Not necessarily. The unicorn will be a retail owner occupant that'll accept the rates/terms that come with a nonwarrantable condo mortgage. Investors tracking cashflow numbers in $USD (instead of obsessing over rate %) might go for it, but owner occ is a no-go simply because the buyer isn't going to accept the loan terms.

Here's a fun one for you. Investor buys one of these $100k condos you describe as a cash buyer ("omg 2% rule in the Bay Area! Buy buy buy!"), wants to slap a loan on it afterwards to do the BRRR thing. Reason it's nonwarrantable is because >15% of units were >60 days late on their HOA dues. So... he pays current other people's HOA dues to close his cash out refi! 

But that's the sort of thing you will only see on a cash out refi and only for an investor (biggerpockets.com member actually), never on a purchase, never for retail owner occupants.