A condominium project with features that lenders view as favorable in terms of
their risk exposure on loans secured by individual condo units. The requirements of warrantability
include such features as the following: the project (including all common areas) is fully completed
and the common areas are insured, the Homeowners Association has been controlled by unit owners (as
opposed to the developer) for some period, most units are owner-occupied, and no one person owns more
than 10% of the units. Loans on units in warrantable condos receive better terms than loans on units
in non-warrantable condos.