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What makes a condo warrantable vs. non-warrantable?
Are you wondering what the difference between warrantable and nonwarrantable condos is? Oftentimes, I’m working with one of my Austin clients, and we are discussing the various options that are best for their needs. I’ll be speaking quickly, excited to share my real estate knowledge with them, and I will throw out some industry specific term. They interrupt, “what the hell does that mean” or “CMA, what does that stand for”? A CMA is a comparative market analysis, used to illustrate a property’s relative value in comparison to other recently sold properties. Another such term that often is received with a furrowed brow or an inquisitive glance is "warrantable condo". Across the nation and in Austin, TX condominium buildings are either warrantable or non-warrantable. It is important to know the difference between the two types when you are purchasing a condo, and imperative to know the difference when you require financing to purchase the condo. A condo is warrantable when a loan used to purchase a condo can be sold to Freddie Mae/Freddie Mac. Conversely, a non-warrantable condo is one in which the loan used to purchase the unit cannot be sold to Fannie Mae/Freddie Mac. If you are considering purchasing a non-warrantable ... more
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