A "non-warrantable condo" is a condominium unit that does not meet the standards set by agencies like Fannie Mae and Freddie Mac, FHA, VA, or USDA making it ineligible for a conventional mortgage.
 

Potential reasons for non-Warrantable status:

• Master Insurance is inadequate

• HOA is currently pending litigation

• The project is new construction and/or has yet to be completed

• The developer has not turned over control of the HOA to the owners

• A high percentage of units are occupied by non-owners

• The community allows short-term rentals

• A single person or entity owns more than 10% of the total number of units