Buying a Condo? Here's What You Need to Know

If you're thinking about buying a condo, there's something important to understand before you get under contract.

You can be a perfectly qualified buyer with great credit, strong income, and plenty of assets, and still run into a financing issue because of the building itself.

The tricky part? You may not know whether a condo is warrantable until after you're under contract and the lender reviews the project.

That means you could have everything lined up on your end and still discover that the building doesn't meet your lender's guidelines.

We recently had a client get under contract, only to have the condo flagged as ineligible by Fannie Mae. Instead of letting the deal fall apart, we moved it to a lender that handles non-warrantable condos.

The lesson?

When buying a condo, you need a mortgage broker who knows how to pivot when the building doesn't fit conventional guidelines.

So before you choose a broker, ask:

“What do you do if the building gets flagged?”

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