Scenario
A buyer is strong, the unit looks normal, and everyone assumes the condo is fine until the project review starts.
Lesson 5 · Glossary lesson
Separate borrower strength from condo project eligibility and lender appetite.
A buyer is strong, the unit looks normal, and everyone assumes the condo is fine until the project review starts.
The member can explain that a condo has borrower, unit, project, and lender-appetite questions.
Skool summary
Warrantable does not mean the buyer is good. It means the project fits the applicable review path and lender appetite.
A warrantable condo generally fits the applicable agency or investor project-review requirements. Non-warrantable means the project has one or more characteristics that may push the file into a different product path or make it unavailable with a specific lender.
Review type, occupancy, budget/reserves, insurance, litigation, special assessments, commercial space, delinquency, investor concentration, and single-entity ownership can all matter. The right question is always source, date, channel, and review type.
Say: 'The buyer may be strong, but the project still has to meet the applicable review requirements. I want to check that before we treat this like a normal single-family approval.'
Homework