8-unit condo complex non-warrantable??? Each owner owns 12.5%...
I own a condo in a nice, but small complex... 62.5% of the units are owner occupied... no litigation issues... no delinquencies... good reserves. But are we "non-warrantable" because technically EACH of the eight owners holds 12.5% of the complex?
I'm referring to a guideline that I have seen many times stating that "no one owner can own more than 10% of the units within a given complex" in order for said complex to remain "warrantable".
Can anyone please shed some light on this for me?
Thank you for your help!
Dustin
Most Popular Reply
That's for 21+ unit condos. From Fannie...
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List of Ineligible Project CharacteristicsProjects in which a single entity (the same individual, investor group, partnership, or corporation) owns more than the following total number of units in the project:
- projects with 2 to 4 units – 1 unit
- projects with 5 to 20 units – 2 units <--- this is you
- projects with 21 or more units – 10%
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I'm not the boss of anyone's HOA, but if it were me I'd go ahead and put something right in the CC&Rs prohibiting anyone from buying a unit if said purchase would mean that Fannie wont lend on any of the units.