Wanting info on DSCR loan for a condo?

[Wayne Doucet]

Wanting to know if they have any DSCR lenders that will loan on a condo. I'm not purchasing both units just one of the two?

[River Sava]

Quote from @Wayne Doucet:

Quote from @David Bilandzija:

@Wayne Doucet Absolutely. Condos are eligible properties for DSCR programs. You'll want to find out in advance if the property is a warrantable or non-warrantable.

Question might sound silly. But what are meaning by warrantable or no warrantable?

Not silly at all, can be confusing! I actually just posted a breakdown about this as it is a common question. Below is a high level explanation. I sent you a dm to connect if you have further questions!

Warrantable Condos:
Approved by GSE Agencies (Fannie Mae/Freddie Mac), they follow a complex checklist. Key determinants include the percentage of owner-occupied units, contribution percentage for the HOA budget towards reserves, and a clean record without litigation, delinquencies, or major issues.

Non-Warrantable Condos:
Non-warrantable condos don't meet the stringent requirements set by GSE Agencies. Maybe they have a lower percentage of owner-occupied units, insufficient contribution to reserves, or some lingering issues. It's like the rebel of the condo world – doesn't play by all the rules!