How Single Investor Ownership Affects Your Condo Loan

When purchasing a condo, lenders follow specific guidelines set by Fannie

Mae and Freddie Mac regarding how many units a single investor can own in a development. These rules determine whether a condo is considered “warrantable” (eligible for conventional financing) or “non-warrantable” (which may require alternative financing).

Here’s what Georgia homebuyers and investors need to know:

Fannie Mae’s Rules for Single Investor Ownership

• If a condo development has 21 units or more, a single investor cannot own more than 20% of the units.
• If this limit is exceeded, the development is classified as non-warrantable, making it ineligible for conventional financing.

Freddie Mac’s More Flexible Approach

Freddie Mac allows slightly different thresholds:

• A single investor can own up to 25% of the units in a development.
• If the single investor is the original developer, they can own up to 49%.
• Additionally, if financing your unit reduces the developer’s ownership percentage, Freddie Mac may still allow financing even if the developer holds up to 49%.

Why This Matters for Georgia Condo Buyers

Georgia’s booming real estate market, especially in cities like Atlanta, Savannah, and Augusta, has seen a rise in condo developments. Whether you’re buying in a high-rise downtown or a beachfront community, knowing these rules helps you avoid surprises during the mortgage process.

At GeorgiaMortgage.com, we work closely with Fannie Mae and Freddie Mac to provide competitive mortgage options for Georgia buyers. If a condo is deemed non-warrantable, we can also explore alternative financing solutions to help you secure the property you want.

Need a Condo Loan in Georgia? We Can Help!

Contact us today to learn more about your condo loan options in Georgia!