The Syosset Plaza, 601B Jericho Tpke, Syosset NY 11791   Tel- 516.921.9000 Fax- 516.750.1200

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Non Warrantable Condos

Non Warrantable Condos - Condominiums that DO NOT FIT into one of these three classes are considered NON-WARRANTABLE CONDOS:

CLASS I

1. Developers control of the homeowners association has not yet terminated
2. Project may be subject to phasing or add-ons which have not yet been completed
3. All common elements and amenities must be fully installed, completed and in operation
4. 70% of all units in the entire development must have been sold and or legally obligated to close
5. 70% of all units in the entire development must have been sold to owner occupants

CLASS II

1. Recent or current condominium conversions (from apartments)
2. Homeowners association has been controlled by the unit owners (other than the developer) for less than two years
3. Project is not subject to phasing or add-ons which have not yet been completed
4. All common elements and amenities are fully installed, completed and in operation
5. 70% of the units in the entire development must have been sold and/or legally obligated to close
6. 70% of the units in the entire development must have been sold to owner occupants
7. No more than 15% of the current unit owners are more than one month delinquent in payment of homeowners dues or assessments

CLASS III

1. Homeowners Association has been controlled by unit owners (other than developer) for at least one year
2. Project is not subject to phasing or add-ons
3. All common amenities are fully installed, completed, and in operation
4. 90% of the units have been sold (owner-occupancy of at least 60%)

A CONDO QUESTIONNAIRE MUST BE COMPLETED BY THE MANAGEMENT TO DETERMINE PROJECT ELIGIBILITY

If you are purchasing a Non-Warrantable condo, you should expect to have a higher interest rate. Many lenders consider these condos to be more risky, and thus increase the interest rate accordingly.

Depending on the loan program you select, be prepared to have a down payment on the home. Some lenders will not offer 100% financing on non-warrantable condos.

For more information regarding this topic, please call Mike Williams at 516-921-9000 or email mwilliams@northshorefunding.com.