Fannie Mae recently announced that on condo communities with 21 or more units that an individual investor (person or entity) can now own up to 20% of the units in the community and the loan can still be delivered to Fannie. For as long as I can remember this percentage has been 10%. So, this is good news!

 

Freddie just announced that they will allow an individual investor (person or entity) to own up to 25% of the units in the community and the loan can be delivered to Freddie. Further, if an investor puts at least 25% down we as the lender can do a Streamlined Project Review. Then, the percentage of units owned by investors in total doesn’t matter anymore. This is good news too.

 

Thus, about the only thing that can make a condo non-warrantable is the HOA being involved in litigation/lawsuit.