In general, a condo or co-op unit is considered non-warrantable if: The project has yet to be completed. Its developer has not turned over control of the HOA to the owners. The community allows short-term rentals.

Are non-warrantable condos harder to sell?

Since non-warrantable condos are hard to buy, they are even harder to sell. Usually, instead of selling to mortgaged single-family homeowners, your target audience may be cash-only buyers or investors. Overall, it takes longer to sell a non-warrantable condo than it does a single-family home or regular condo.

Is it harder to get a mortgage for a condo?

Getting a mortgage for a condo is generally harder than getting a mortgage for a house. A condo unit is part of a multi-unit development, so the borrower's finances are intertwined with others — and lenders see this type of home as a riskier investment.