By walt.nally@nafinc.com
February 8, 2016
The other day, I was talking to a business partner who specializes in getting condominium projects approved through the GSE’s , Fannie Mae and Freddie Mac and was surprised to learn that Builders/ developers today where still constructing condominiums that did not conform to Fannie or Freddie guidelines, meaning they were being built as non-warrantable. Well what does that mean? A perfect example would be a residential condo project being built with a commercial component on the ground floor that exceeded more than 25% of the total square footage of the entire project. That would make it “Non-warrantable”. A Non-warrantable condo prevents a buyer from getting traditional sources of financing. The buyer is left with very few loan options which results in slower and fewer sales. It is extremely important that developers work with the right people early to prevent these catastrophic events from happening. Walt Nally Regional Builder Sales Manager New American Funding 9465 Wilshire Blvd, Suite 400 Beverly Hills, CA 90212 Direct: 800 450-2010 x 5369 Direct: 310-409-0278 Fax: 310-8610878 Email: walt.nally@nafinc.com