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August 2022
IS YOUR CONDO WARRANTABLE?

WHAT IS A WARRANTABLE CONDO?
It is all about the loan.....
 
For a condo to be warrantable, the condo project has to meet requirements laid out by Fannie Mae and Freddie Mac or FHA. Warrantable condos must meet the following minimum requirements related to their ownership and governance. There are many more requirements than listed below.
  • At least 10% of the annual budget must go to reserves.
  • At least half of the units must be owner-occupied.
 
WHAT IS A NON-WARRANTABLE CONDO?
 
  • The project is new construction and/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
  • Short-term rentals are allowed
  • A single person or entity owns more than 10% of the units
  • The building owner or developer is involved in litigation
 
The lender will need to order a condo project review to determine whether the property is warrantable, and this could take 10 days to a few weeks from the order date. **Every condo must be reviewed in this manner, there is nothing new about this process. Due to the Florida condo building disaster, a few more requirements have been added to the list.
The project review is not completed until after a contract is submitted to the lender. Gathering basic info from the condo association in advance can minimize surprises for both the buyer and the seller. 
 
WHAT IF MY CONDO IS NOT WARRANTABLE?
 
If the condo is NON-WARRANTABLE, the borrower will either have to pay cash, get a portfolio loan from their bank (not all banks offer),  or get a loan from a lender with less desirable terms. (ARMS or higher interest rates). It is important to know this in advance because:
  • The buyer may not qualify for the loan at a higher interest rate/costs (meanwhile, the condo is off market)
  • The buyer may not qualify for a non-traditional loan (the condo would need to go back on market)
 
SELLERS:
If you are thinking of selling your condominium please give us a call ahead of time. Our role is to stay on top of these kinds of details to create a successful and easy sale.
 
BUYERS:
Our buyer clients can rest assured that we are on the lookout for potential issues and pitfalls that could impact their approval.
 
*Some details provided by Angela  Pitera @ Stock Yards Bank Angela.Pitera@syb.com
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Aug. 28th 7:30-9:00PM
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Craig Greenberg is part owner!
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NEW LISTING!
400 E. Main Sreet #304
$315,000
LEARN MORE
NEW PRICE!
4019 Landside Drive
$285,000
LEARN MORE
2518 Phoenix Hill Dr
$465,000
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Pending Listings

 
  • 679 Hunters Lane, Simpsonville, KY
  • 1606 S. Shelby St.

Recently Sold 

  • 3006 Beaumont Rd. 
  • 621 N. Hite Ave.
  • 8703 Jen Ct.
  • 2815 Smilax Ave.
  • 7703 Hermits Run Rd.
RATES
As of August 22, 2022

8:00 PM
Courtesy: Republic Bank
 
Conventional 30 YR. 5.875% 

Conventional 15 YR. 5.5%

FHA 30 YR.: 5.625%

 
Home Ownership Trivia- Jeopardy! Style:
3 QUESTIONS TO TEST YOUR KNOWLEDGE
YOU COULD BE A WINNER!!
CLICK HERE to answer the questions. The deadline is August 31st.

On September 1st, we will draw from the entries and announce the lucky winner on our P&K Facebook page.

**There is a small prize in the "Pineapple Prize Closet" for the winner so put on your thinking cap and play along...we promise the questions are not hard!

Nathan C. was the winner last month.
He took home this pineapple-inspired doormat!
SOME TREES ARE BETTER THAN OTHERS
(At reducing pollution)
When choosing the right tree to plant, usually we think in terms of speed of growth, spread, and native stock. These articles offer an approach that includes considerations about how much pollution the tree filters from the air. Did you know some trees actually contribute to pollution? iTrees (https://species.itreetools.org/) is a really cool online tool that can help you choose the right tree for your needs. It helps you consider important factors such as size constraint, shade, erosion, pollution absorption, etc. Drill down to the city level and create a top 10 list for your climate zone/region. **Giant Sequoya and Durmast Oak are the best fit for my parameters ;-)
Feel free to pass this information along to friends and family as this tool works in most countries of the world.
Be sure to share us with your friends!
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