Warrantable Condo

A warrantable condo is one that meets the guidelines of major lenders and Fannie Mae or Freddie Mac, which makes it eligible for standard conventional financing at normal rates. Factors that affect warrantability include the share of owner-occupants versus renters, the association's budget and reserves, any pending litigation, and how much of the building one owner controls. A non-warrantable condo can still be bought, but usually requires a specialized loan and a larger down payment. This matters in Providence, where many converted mill and triple-decker condos can trip these rules. See buying a condo in Providence.