Lesson 3
Why Warrantability Matters
Warrantability affects three things buyers care about most: what mortgage financing options are available to you, what it will cost, and how easily you can resell later.
Real-world scenario
Two nearly identical 2-bedroom units, same island, same price. One sits in a warrantable association; the other in a non-warrantable association.
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Buyer A — Warrantable
- • Requires smaller down payment
- • Widest pool of mortgage lenders
- • Lower interest rate, up to 30-year term
- • Broad pool of future buyers at resale
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Buyer B — Non-Warrantable
- • Usually requires higher down payment
- • Fewer mortgage lenders to choose from
- • Slightly higher rate, shorter term
- • Smaller (but active) buyer pool at resale