Financing availability

[jlhilton]

What is the name of your state? SC

Is a developer/real estate agent/seller required to disclose to a buyer that the product (non warrantable condo) is not eligible for conventional financing? The agreement to buy and sell real estate states that the method of payment would be subject to financing, and to be obtained by conventional financing. We were in the process of finalizing our loan and our lender came back and stated they could not make the loan because it is non warrantable. This was the first that this "issue/terminology" had come up. Conveniently, the real estate broker has a preferred lender than handles non warrantable loans. I am concerned as this indicates a higher risk project than what was presented to me.

Any insight will be appreciated.What is the name of your state?

[LindaP777]

Originally Posted by jlhilton

What is the name of your state? SC Is a developer/real estate agent/seller required to disclose to a buyer that the product (non warrantable condo) is not eligible for conventional financing?

Not warrantable?
Not eligible for conventional financing due to what reasons? Too many rentals? Too many owned by one person?

[jlhilton]

The project is not warrantable due to the developer not obtaining a fidelity bond on the HOA. They also have not met the required number of sales to "outside" interests (of which neither was explained to us at contract signing.)

[nextwife]

If your continquency makes your purchase subject to obtaining conventional financing, and you cannot obtain it, you are NOT obligated to close.

[HomeGuru]

Originally Posted by nextwife

If your continquency makes your purchase subject to obtaining conventional financing, and you cannot obtain it, you are NOT obligated to close.

**A: I agree. Read the contract carefully.

[nextwife]

Originally Posted by HomeGuru

**A: I agree. Read the contract carefully.

Howdy, stranger! Welcome back.