Why Is It So Hard To Finance Condos Around LSU?

 Here is a secret….there is a difference in the types of condos and how they can be financed!

There are two types of condominiums.  These are “warrantable” and “non-warrantable”.  In order to receive the conventional (FNMA) or standard FHA mortgages  the guidelines state the condo, must be considered “warrantable” and meet certain guidelines.

• 90% of the units must be sold
• one owner cannot own more than 10% of the units
• must be 70% owner occupied
• no more than 20% can be commercial space
• no more than 15% of the units can be delinquent on condo. dues

Does that mean it is not a good purchase?  No, it just means that the mortgage company or bank cannot sell off the loan if they do not meet these guidelines. Most of the condos around LSU  are considered “non-warrantable”, but not to worry,   there are lending programs available just for “non-warrantable” condos.  These loans are done portfolio (kept in house) and will not get sold to FNMA or an investor.  The trick is to discover the local lenders who offer this program to consumers and then to find a local realtor who knows the difference and  then search for condos.